Telangana to create analog fab ecosystem around Hyderabad

Will provide tailor-made packages and rationalise taxes for such manufacturers that invest over Rs 200-cr in plant and machinery

The Telangana government is gearing up to create an ecosystem that will eventually help host an analog fab manufacturing unit in Hyderabad, according to state information technology (IT) and panchayat raj minister KT Rama Rao.

"The Indian Cellular Association has approached us with a proposal to set up a mobile manufacturing hub near Hyderabad. Many companies are keen to establish units not just to manufacture mobile handsets but also for battery packs and chargers etc. This will be a step towards hosting an analog fab cluster in the long-term," he said, adding that his ministry was in preliminary discussions with US-based Cricket Semiconductor to set up shop here.

Cricket Semiconductor had in February this year signed a memorandum of understanding with the Madhya Pradesh government to set up an analog fab in that state with an investment of $1 billion (approximately Rs 6,400 crore).

The Telangana government will provide tailor-made packages and rationalise taxes for such manufacturers that invest over Rs 200 crore in plant and machinery or provide employment to more than 1,000 people "to meet or beat the incentives offered by other states", he said.

Inaugurating smartphone player Celkon's assembly unit on the outskirts of Hyderabad on Friday, Rao said that he would be visiting South Korea and Japan pretty soon to invite electronic hardware manufacturers to Telangana.

"Micromax has decided to set up a mobile handset manufacturing plant near Hyderabad on 50 acre with an investment of Rs 500 crore," the IT minister said, adding that plans were afoot to develop hardware clusters in Maheshwaram, Medchal and Ghatkesar near Hyderabad.

The Celkon's assembly unit is equipped with four line with an capacity of 200,000 units a month. According to executive director Murali Retineni, the assembly unit would be expanded to 12 lines with a capacity of 500,000 units per month.

"We are in the process of setting up a manufacturing plant and component units in the vicinity of the assembly plant with an investment of Rs 200 crore. The idea is to locally manufacture 80 per cent of our production from the proposed plant within six months from now," he said.