AP leases 100 acres in Fab City to SemIndia''s project
30 Apr 2007
Mumbai:
The Andhra Pradesh government has issued orders leasing
out 100 acres of land for 66 years, at a nominal rate
of Re1 a year, at the 1,200-acre Fab City for its proposed
semiconductor-manufacturing project of SemIndia
SemIndia, on its part, will have to set up $75 million
assembling, testing, marking and packing (ATMP) facility
within 18 months, $750-million chip manufacturing unit
within 3 years and $2.25 billion advanced semiconductor
plant within 5-7 years from the date of allotment of land.
SemIndia will join hands with Andhra Pradesh Industrial
Infrastructure Corporation (APIIC) in the Fab City SPV,
which will develop state-of-the-art infrastructure to
house fabs and fab-related eco system under the public-private
partnership route.
The government has agreed to meet power requirements of
the project at a subsidised rate of Rs1.85 a unit for
a period of 15 years. The government will also provide
5 million gallons a day (MGD) of water in phases, based
on the requirement, at Rs15 a kilolitre for 15 years.
Besides, the project will be entitled to full reimbursement
of VAT and CST, exemption from other duties and benefits
accruing to SEZ units as also policy incentives announced
by the central government.
The state government will extend a training grant of Rs10,000
per head for up to 15,000 employees with the proviso that
the training grant for a person shall not exceed 50 per
cent of the total training cost. The government will also
facilitate the establishment of a world-class engineering
and technology university by the company.
The much-awaited government order (GO) issued late on
28 April,
has asked SemIndia to play the role of an anchor industry
on the 100 acres. The government will allot the remaining
1,100 acres in Fab City to other developers.
.webp)
