The central government has approved the setting up of the Electronics Manufacturing Cluster, worth about Rs 180 crore, in Karnataka’s Dharwad district ahead of the state’s assembly election.
Union Minister of State for Skill Development & Entrepreneurship and Electronics & IT Rajeev Chandrasekhar made the announcement in Bengaluru and highlighted that the move is expected to create over 18,000 jobs. The cluster will be established in a 50-50 partnership between the Centre and the Karnataka government.
This is the second big announcement for Karnataka after the minister announced earlier this month that Apple iPhones will be manufactured in a new 300-acre factory in Karnataka that will employ one lakh people in the southern state of the country.
This will be established in the Kotur-Belur Industrial Area, which was proposed last year to support medium and small-scale industries, and under the Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.
Here it should be noted the scheme was established in 2020 to compensate industries for the lack of quality infrastructure and to develop a robust electronics manufacturing ecosystem in the country in order to make India an Electronics Manufacturing Hub.
This scheme also provides financial assistance for the setting up of both EMC projects and Common Facility Centres (CFCs) across the country.
As of now, three Electronics Manufacturing Clusters on an area of 1,337 acres have been approved under this scheme, with a project cost of Rs 1,903 crore, including central financial assistance of Rs 889 crore, and an investment target of Rs 20,910 crore.
However, the project in Karnataka is expected to catalyse investments worth more than Rs 1,500 crore in the near future. As per the government, nine companies, including start-ups, have already committed to investing Rs 340 crore and employing 2,500 people.
MoS Chandrasekhar said in Bengaluru on Friday: “Karnataka is emerging as a global Electronics manufacturing hub for the world, just as it is already a telecom hub with Apple plants in Kolar (Wistron) and Devanahalli (Foxconn).”
“These new investments are creating jobs and development. The Narendra Modi government is committed to build India as a manufacturing hub as part of its ‘Atmanirbhar Bharat’ policies,” he added.
This project apparently will have a strategic location advantage as it will be well connected with NH-48 and Hubli Domestic Airport which serves Hubli as well as Dharwad, lowering the industry’s logistics or transportation costs in the Electronics Manufacturing Cluster.
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