Thursday, November 21, 2013: Reportedly, GMR Group is keen to set up a semiconductor fabrication unit (fab). Costing a total of about Rs 250 billion, 40 per cent of this technology project will be sponsored by the Center.
On condition of anonymity, two officials close to the matter told Business Standard, GMR has approached the Department of Electronics and Information Technology (DEIT) and is currently looking to partner technology companies interested in the project.
This move could disturb its rival Jaypee Associates and Hindustan Semiconductor Manufacturing Corporation (HSMC), which have been planning to set up fab units since 2011. Both companies got the ‘in-principle’ approval to build two fab units in India by the Cabinet in September, which would cost Rs 500 billion upwards.
Cabinet had told DEIT to invite other vendors as well, who can apply for the sops before coming back for a final approval. This deadline will end on 25th of this month.
Government will most likely evaluate all the projects to determine the most cost-effective proposal. A government official said, “If there is another proposition for the project, it will surely be considered. It will be on the Cabinet or the advice of the committee to decide what to do then (with the existing proposals).” Also, it may not be possible for the Cabinet to approve 3-4 proposals.
“They (GMR) have sounded out many global technology companies,” one of the officials told BS. The other official told that the formal proposal to the department is yet to be presented by the company. “It seems they (GMR) are reaching out to technology partners for this.”
