Bharat Heavy Electricals (BHEL) and Bharat Electronics (BEL) consortium has decided to invest Rs 2,000 crore to set up a solar photovoltaic modules production unit near Hyderabad, Andhra Pradesh. The Andhra Pradesh Industrial Infrastructure Corporation (APPIC) has allotted 90 acres of land in Fab city for the proposed project. Besides, Bharat Dynamics (BDL) has also proposed six units including a missile unit in Ranga Reddy district with a cumulative investment of Rs 3,000 crore. The new investment through the PSU joint venture is expected to help the state to revive its 1040-acre Fab city project near Hyderabad.
Andhra Pradesh pip Karnataka and Tamil Nadu to get the Fab city project in 2006. Originally conceived as a semiconductor manufacturing hub, Fab city never took off as planned by the Centre and the state. This prompted the state to position it as solar investment hub.
Aerospace SEZ near Hyderabad has also attracted new investment apart from the Tata Group and is expected to get cumulative investment of Rs 2,000 crore as 16 new companies have submitted proposal to start units there. The companies which have submitted the proposal is mostly based out of the city and are engaged in manufacturing equipments related to aerospace.
The Tata Group has a helicopter cabin manufacturing unit at the 250-acre aerospace SEZ. It is also setting up three more units - Nova Integrated System, Tata Aero-structure and Tata Aerospace Systems. The three new joint ventures will make radar and electronic equipment for the defence sector, assembling of aircraft equipment and manufacturing of aircraft parts.