Andhra seals Fab city deal

HYDERABAD: The Memorandum of Understanding (MoU) to set up the $3 billion Fab city in Hyderabad was signed here today between Andhra Pradesh government and SemIndia.

Laxmi Parthasarathy, principal secretary (Industries) to Government of Andhra Pradesh and Vinod K Agarwal, CEO, SemIndia, signed the MoU in the presence of state chief minister YS Rajasekhar Reddy.

Construction work for the semiconductor chip-manufacturing unit is likely to commence within 45 days. Testing and assembly spaces would be completed in the first phase.

The unit will be situated at a 1200-acre land in Thukkuguda near Shamshabad in the city outskirts.

``We had apprehensions after the fresh proposals made by Karnataka and Tamil Nadu. But thanks to the Prime Minister and SemIndia, we have been able to bring the project to Hyderabad,'' said Reddy.

Geetha Reddy, minister of Industries, chief secretary TK Dewan and K Ratna Prabha, IT and Communications principal secretary were also present.