HP scraps Rs 2,400-cr microchip project

CM Prem Kumar Dhumal told the state Assembly that the government has scrapped the ambitious Rs 2,400-crore microchip project of a Silicon Valley-based firm as the promoters have failed to show any progress in setting up its unit at Baddi in Solan district.

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Chief Minister Prem Kumar Dhumal on Monday told the state Assembly that the government has scrapped the ambitious Rs 2,400-crore microchip project of a Silicon Valley-based firm as the promoters have failed to show any progress in setting up its unit at Baddi in Solan district.

Dhumal was responding to Congress MLA and former minister B S Balis question on the fate of the project.

Bali demanded a high-level probe into it and said the company has caused a huge loss to the state,as it also included 60MW captive power plant at Ropa.

However,Dhumal rejected Balis allegations and said the project did not take off due to economic downturn in the US. The state government,he admitted,had given a commitment to allot 60MW hydro power project to the company and it will now be put for international bidding.

He said the microchip firm,Solana Yam Company,had deposited Rs 50 lakh as upfront premium and allotted land in the industrial hub of Baddi.

Dhumal also said if any other investor came forward with a project of similar scale,the government would consider it again.

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