Moser Baer Hyd project shelved

The Andhra Pradesh government has rejected Moser Baer India Limited's request for extension of time to execute its proposed $500-million photo voltaic cell manufacturing project. The company had sought two more years to execute the project.

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC), which allotted 100 acres to the company in Fab City here on lease basis, withdrew the allotment in January, 2011, citing reasons like non-payment of initial amount towards land.

The government on its part has decided to formally cancel the MoU, which it signed with the company in 2008. Orders to this effect, approved by chief minister N Kiran Kumar Reddy, are expected to be issued in a day or two.

Moser Baer, the country's leading optical storage media producer, had promised to execute its project in two phases in 36 months.

The $200 million phase one project was to be completed in two years, but the company did not do any thing except informing the government that it needed more time to proceed on the project due to the recession that affected its business plans for 18 months, according to officials.

The company also informed that it would take up the project only after expansion and execution of its projects in Greater Noida and Tamil Nadu.