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Govt To Take Direct Control Of Fab City |
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Amidst the controversy over the issue of giving away management control
of the proposed Fab City to SemIndia, the state government has decided
to take direct control of the project.
The original plan had been to develop the 300-acre Fab City through a
special purpose vehicle (SPV) comprising SemIndia with 89 per cent
stake and the Andhra Pradesh government with 11 per cent equity.
Within the 300-acre Fab City, SemIndia was to be given 75 acres for setting up a fab and facilities for allied activities.
However,
for SemIndia agreeing to remain away from the management of the Fab
City, the company would get another 25 acres. "Instead of 75 acres,
SemIndia will now be allotted 100 acres," an official source said. The
price at which the land would be allotted to SemIndia is yet to be
decided.
The project will now be developed on a public private partnership model and not through a special purpose vehicle (SPV).
"We
are working on a different model," Andhra Pradesh Industrial and
Investment Corporation managing director B P Acharya told TOI. However,
he said the details of the model would be given in a government order
to be issued on Saturday.
The change of plan in terms of asking
SemIndia to just be a unit in the Fab City and not a developer is said
to be a result of a meeting between Vinod Agarwal and associates and
chief minister Y S Rajasekhara Reddy on Thursday.
"The original
plan of the government having a minority stake in Fab City is seen as
the bone of contention while other allegations over SemIndia and its
promoters -levelled by TDP - are personal. As far as the government is
concerned, a due diligence about Vinod Agarwal was done by the state
with the help of the external affairs ministry and there was never a
problem with his credentials," the source said.
SOURCES:
Times Of India
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