I do not think India needs a fab. What they need is to focus on the design side and the IP. That makes sense to me.It is very expensive to operate fabs and the Chinese with their purse seems to be well positioned to lead in that area.
Jaypee is the money and the Indian company with a strategic interest (a bit like Formosa Plastic in Taiwan).
Tower's contract to build and operate the fab would be with Jaypee, if the bid is successful.
With a poor infrastructure, lack of skilled manpower and the cream of engineering manpower with a lack of interest in anything other than software and financial services, India has a mountain to climb. If a cement manufacturer is able to see a future with all the odds stacked against such a venture, I can only smell a scam of humongous proportions!
I do agree about the poor infrastructure, but when it comes to lack of skilled manpower, I disagree with you. If you look around you will find most of the backend operations for semiconductor cos are outsourced to India. You have atleast 80-90 semiconductor start ups with projects for the Top notch Semicons. This is just a start. Try not be a pessimist without knowing the actual picture around you.
I am sorry if I touched a raw nerve somewhere. By backend do you mean A&T? If so I cannot list more than SPEL Semi in Chennai which is doing some volume packaging. So there are no 80-90 units in India. And if you meant design services as backend, IC design engineer do not qualify as a process engg in a wafer fab. I say that because I worked for 17 years as a fab process engg. I commented with a full and thorough understanding!