The Andhra Pradesh Industrial Infrastructure Corporation has begun scouting for a co-developer for Fab City. The corporation, which took the driver’s seat after the government cut SemIndia’s role, is believed to have proposed to leading “desi” developers of IT and infrastructure projects to study the feasibility of becoming a co-developer in the (SPV). Official sources told this correspondent that the APIIC sought feedback from companies Rahejas, DLF, L&T and promoters of Satyaveedu Special Economic Zone on becoming co-promoters. “The APIIC asked us to study the feasibility of becoming a co-promoter. It wanted us to study the market and other aspects. But it does not mean that we will be selected on a nomination basis,” a top executive from one of the developers said on condition of anonymity. Enquiries revealed that the developers were hesitant for various reasons including the high cost involved in infrastructure development. The Fab City SPV will be primarily engaged in infrastructure development which is expected to cost more than Rs 4,000 crores. “None of the developers have knowledge about the Fab industry and the risks involved as they have been handling only IT projects. Second, the return on investment largely depends on the Fab investors’ conditions,” another developer said adding that there were apprehensions that other investors would also press for free land like SemIndia. A section of officials also cautioned the APIIC against the reverse strategy of trying for international developers through “desi” ones. “In any infrastructure project, the international bidders choose their local partners. It is better for the APIIC to select the developer through bidding,” a senior official said. Any deviation from the process could lead to criticism that the government is turning Fab in to a real estate venture, he said.