Friday, July 1 2005 14:19 Hrs (IST) - World Time -

Bangalore: Government is looking at potential investors and studying successful models adopted by Taiwan and China on establishing a fab facility in India, Union Finance Minister P Chidambaram said today (July 1, 2005).

"In the last few weeks, the Government has been closely and carefully examining various options (regarding the fab facility). We are looking at potential investors. We are looking at the path taken by some other countries, especially Taiwan and China," he said.

Speaking after inaugurating the Rs 45 crore semiconductor test facility of Tessolve Services Pvt Ltd at Electronic City on the city outskirts, he added: "There is no shame in conceding that we are starting in this race rather late".

Chidambaram said Taiwan and China are in the fab business for many years and have established world-class infrastructure in this space.

"With keen interest shown by Indian manufacturers and entrepreneurs, I have no doubt that India will become a hub for fabrication and chip," the Minister said.

He said although India has made huge progress in software, it lags behind in hardware; India does not have a world-class fab facility.

"Efforts are underway to make up for this deficiency and make India not only a hub for software but also for hardware, and link every chain from design to final product," Chidambaram said.

Chidambaram spoke on the need for change in 'attitude and mindset' at the central and state levels to harness huge talent outside the Government and allow private enterprises to flourish.

He said in the pre-economic liberalisation era, better and greater talent outside the Government were not recognised leading real talent fleeing the country in view of limited opportunities and making other countries prosperous and rich in the process.

Chidambaram stressed on creating enabling environment for private enterprises to flourish. Central and State Governments should be more open, receptive, flexible and sensible, Chidambaram advocated.

Indian businesses should benchmark themselves with the best anywhere in the world, and not with those in the neighbourhood, according to him.

Stating that India's human resources are incomparable and unparalleled anywhere in the world, Chidambaram said that the country needs to build quality education from the primary level and sound education system at the middle and secondary levels.