The Hindu : Front Page : Manmohan urged to hasten policy on Fab units

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Wednesday, Dec 06, 2006
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Manmohan urged to hasten policy on Fab units

Special Correspondent

State Government prepared to float $ 500-million venture fund

HYDERABAD: Requesting Prime Minister Manmohan Singh to expedite the announcement of a policy on Fab units, the State Government has announced that it will float an initial venture fund of US $ 500 million (Rs. 2,400 crores) for financing the units coming up at the proposed mega Fab city here.

Chief Minister Y.S. Rajasekhara Reddy said Fab companies were eagerly waiting for incentive guidelines. He submitted a memorandum to Dr. Singh on Tuesday, requesting him to ensure that the units did not delay their investments or divert them to other countries.

Dr. Singh was here to participate in the golden jubilee celebrations of the Administrative Staff College of India (ASCI) and inaugurate the "Global Logistics Summit" at the Indian School of Business.

Dr. Reddy explained that besides fulfilling the infrastructure requirements, the Government was planning to set up a high quality training institute for imparting the necessary skills to those who would be employed in the Fab city.

Dr. Reddy also sought a direction to the Oil & Natural Gas Corporation (ONGC) not to withdraw its committed investment of Rs. 7,500 crores on a refinery and Special Economic Zone (SEZ) in Kakinada.

Following the signing of the MoU with the ONGC and others, the Government had acquired 4,000 acres of land required for the proposed refinery and obtained a formal SEZ status for the project.

However, the ONGC's decision to withdraw from both projects had put the Government in an "embarrassing situation," he said.

He urged the Prime Minister to take steps to ensure early release of flood relief sought by the State involving Rs. 430.37 crores for temporary measures and Rs. 5,811.85 crores for permanent restoration.

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