The Hindu : Andhra Pradesh / Hyderabad News : Fab City to turn hub for alternative energy

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Tuesday, Jul 08, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Fab City to turn hub for alternative energy

M. L. Melly Maitreyi

Manufacturers opting for more photovoltaic or solar cell units

Of the 16 companies allotted land, 11 have opted for solar cell units
Three companies to set up semi-conductor chip units, 2 to supply industrial gas

prime site: A view of the Fab City under construction at Maheswaram.

HYDERABAD: Fab City, conceived to be developed as the largest cluster of semi-conductor manufacturing units in the country, appears to be heading to become the largest hub for alternative energy given the current industry preference to set up more photovoltaic or solar cell units.

Of the 16 companies allotted land, only three — Semindia Fab (100 acres), Nano-Tech Silicon India (50 acres), Moser Baer (100 acres) — will set up semi-conductor chip units while 11 others have opted for solar cell units. Land was also sanctioned to two service provider companies for the supply of industrial gas.

Responding to the recent notices issued by Andhra Pradesh Industrial Infrastructure Corporation, chief promoter of Fab City, Semindia and Nano Tech Silicon India sent a status report of the units, APIIC Managing Director B.P.Acharya explained.

Semindia finalised its unit’s design, began construction work and placed orders for machinery. Nano Tech Silicon responded that it would first set up ‘Thin film solar unit’ reflecting the market trend, Mr. Acharya told The Hindu.

Another four companies — XL Telecom and Energy, KSK Surya Photovoltaic Ventures, Solar Semiconductor and Surana Ventures Ltd. — too started construction work.

Mr. Acharya said that the delay in announcement of semiconductor policy, which came only in 2007, also was a factor for the delayed take off of the project announced in 2006. The semiconductor policy applied to semiconductor chips as well as solar cells.

But the industry dynamics, following rising fuel prices, had changed in the last one year. There emerged better demand and ready market for energy efficiency products and alternative energy such as solar energy. So more inclination from investors towards solar cell units, he explained.

Another reason for preference for solar cell units is the long gestation period of semiconductor units and high investment to the tune of US $ 2 to 3 billion. Solar cell units, on the other hand require Rs. 200 300 crore with a market ready to be tapped. But in due course more semi-conductor units should come up because of global demand for semi-conductor chips used for computer processing and mobile phones.

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