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FabCity Gets A Revival Shot Of $4 Bn Investment
Posted by Pradeep Sadanapalli | April 12, 2008 | 383 views
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Loading ...The much-hyped Fab City in Hyderabad got the boot as the semiconductor hub of India, but now it’s been reenergised attracting almost USD 4 billion in investments.
The 1,200 acre space in Hyderabad was supposed to help the nascent semiconductor industry take off. But the Fab City project didn’t get a good response. Another industry however is blooming in this very place; one which makes solar panels for exports to Europe and North America. The panels are used to convert solar energy into electricity.
Nava Akkineni,Executive VP, Solar Semiconductor said, “The land is allocated at reasonable price for 66 years. The government of Andhra Pradesh is providing incentives like water, electricity and tax benefits in Fab City.”
Fab City has got a revival shot of USD 4 billion. These firms are mostly owned by NRIs from Silicon Valley. The government is doing all it can to bring in more such investors. In 4 years, the global solar industry is expected to touch USD 40 billion. To encourage investment in India, the union government has listed several sops in the Fab policy for the solar sector and this includes a 25 per cent capital subsidy.
AV Kameswara Rao, Executive Director, PWC said, “It is a very capital intensive industry. So, capital subsidy itself is a very attractive segment of the policy. Various other duties are also rationalized and done away with. The whole process is laid out an a systematic fashion. Various companies are invited and there is an appraisal process to go through. This is an industry that thrives on large scale.”
With a Fab city and Fab policy in place, Hyderabad is now becoming the new destination for the solar industry.
SOURCES:
Money Control
Topics: What's UP, Business News |
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