SemIndia’s CEO Vinod K Agarwal asserted on Wednesday that his company would stay put and execute the project at the proposed Fab City on the outskirts of the city.

Though expressing his displeasure over the delay on the government order (GO) detailing various subsidies and incentives to be offered to fab units, Agarwal said he would execute the project in the state.

“We used to get calls from other states much before we had decided on AP. Now again, owing to the allegations and the confusion over the project, some states are calling us again,” Agarwal said. “However, SemIndia would wait for the GO and execute the project here,” he said.

The government has been dragging its feet on issuing a GO, which is expected to bring more clarity into the affairs of the Fab City execution.

The subsidies and incentives that would be offered to the chip manufacturing and allied companies will become applicable only after the order is issued.

Even the land would be formally handed over to companies like SemIndia based on the GO. “The delay in the GO has disturbed project schedules. There will be some cost escalation too,” Agarwal said.

While the first project of SemIndia at Fab City — an assembly, test, marking and packaging (ATMP) facility — would be ready in 12 months from now, the core fab is expected to become operational in the last quarter of 2008-09.

The ATMP facility would cost about $100 million and the fab will incur an investment of about $3 billion in two phases. “Our investors too are not happy with the pace of execution of the project. We have already brought in experts in semiconductor operations to Hyderabad.

But, we are unable to move forward since the GO is yet to be issued,” he said.

SemIndia and the AP government formed a special purpose vehicle for developing the 300-acre Fab City. This deal has come under constant questioning from political parties.

“I know we are not good at property development. But, when we develop infrastructure for a fab, it has to be done with expertise. Since I have to do that for my fab, I have taken the responsibility of doing so for the entire project. There is no way I would make money in this,” he said.

Allegations have also been made over Agarwal’s credibility and expertise in setting up a fab. “I have 35 years of standing in the industry. I have an experienced team. The whole world trusts me, except Hyderabad,” Agarwal said.