The Hindu Business Line : Mega fabrication facility for microprocessors

(From left) The Chief Minister of Andhra Pradesh, Dr Y.S. Rajasekhara Reddy, the Karnataka Minister for Large and Medium Scale Industries and Infrastructure, Mr P.G.R. Sindhia, and Chairperson-CII Southern Region, Ms Shobana Kamineni, at `Suminfra 2004', a summit on `Sustainable public-private partnerships in infrastructure' in Bangalore on Thursday. — G.R.N. Somashekar

Bangalore , Sept. 2

THE Centre is exploring ways to set up a mega fabrication facility for microprocessors. Such a centre is estimated at around $4 billion (around Rs 18,520 crore), according to the Union Secretary, Planning Commission, Mr Rajeeva Ratna Shah.

Participating at the two-day `Suminfra', the CII-sponsored summit on infrastructure in the southern States, here today, Mr Shah said such a facility would enable India to "board the hardware bus at the next stop". The IT hardware and automobile sector, he said, were two sectors with big potential for investments.

The Andhra Pradesh Chief Minister, Dr Y.S. Rajashekhara Reddy, special invitee to the meet, said Andhra Pradesh proposes to have a multi-crore semiconductor chip fabrication centre at Hyderabad with participation from private sector hardware majors and has sought the Centre's support for the mega project.

Dr Reddy said the State is in talks with potential partners, both MNCs and domestic companies. It would provide all necessary facilities for such a mega fab facility.

The State is also planning to have two other major projects: an auto crash-testing centre on Government land at Vijayawada and a Statewide broadband network project connecting all villages. These are estimated to cost Rs 572 crore and would need the support of the Planning Commission. An auto crash-testing centre, according to Mr Shah, is estimated to cost Rs 1,700 crore. The Centre is looking at ways to increase investments in infrastructure projects and models of financing them by involving MNC or domestic corporates. Public-private partnerships (PPPs) had come to stay as in the case of the highways and port projects. In the port sector, 17 projects with an estimated cost of Rs 4,053 crore have been approved and 19 others estimated at Rs 3,479 crore are under consideration. Bids have been invited for these. Listing recent initiatives at improving infrastructure, Mr Shah mentioned the electronic data interchange networking ports, airports, customs, DGFT and Concor; the new Committee on Infrastructure set up under the Prime Minister; Sagarmala, which is expected to channelise investments into shipping and ports; and the Rail Vikas Nigam to spearhead PPP in railways. Earlier, the Karnataka Industry Minister, Mr P.G.R. Sindhia, said a new Infrastructure Policy would be unveiled soon to spur private investments. Karnataka's initiatives such as setting up of a joint-sector infrastructure body IDeCK and the Municipalities Act Amendment of 2002 would have far-reaching impact in the coming years. The Government expects Rs 2,000-crore worth of private funds to flow into roads and power sectors in five years.

He however, admitted that, "in our eagerness to become a global destination for investors", growth has become Bangalore-centric. Now the Government would see where it is headed and make suitable corrections.The coastal belt, he said, would be a good bet for investments and has so far attracted 30 per cent of all investments.