Hyderabad's Fab City bags $4 bn investment

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http://www.moneycontrol.com/india/news/business/hyderabads-fab-city-bags-4-bn-investment/16/00/334081

Hyderabad's Fab City bags $4 bn investment

2008-04-12 14:11:05 Source : CNBC-TV18
By Vishwanath Pilla & Vivin Matthew, CNBC-TV18

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.

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