Modified Electronics Manufacturing Clusters (EMC2.0) Scheme

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24-Mar-2023: Govt approves setting up of Electronics Manufacturing Cluster at Hubli-Dharwad in Karnataka

Union Minister of State for Skill Development & Entrepreneurship and Electronics & IT, Shri Rajeev Chandrasekhar announced in Bengaluru today the approval for setting of the Rs 180 crore worth Electronics Manufacturing Cluster (EMC) at Dharwad which is expected to create over 18,000 jobs.

The project, which is being set up at Kotur-Balur Industrial Area in Dharwad District of Karnataka under EMC 2.0 scheme, is expected to catalyse investments to the tune of over Rs 1,500 crore soon. Nine companies, including start-ups have already committed to make investment of Rs 340 crore with employment potential of 2,500 people.

“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,” the Minister said.

This EMC has strategic locational advantage and well connected with NH -48 (1 Km), Hubli Domestic Airport (33 Km) which will reduce the logistics/ transportation cost of the industry in the EMC. 

The Centre has already approved a Common Facility Centre (CFC) for development of an advanced testing facility in Mysore, Karnataka that will meet the various testing requirement of the industry.

The Modified Electronics Manufacturing Cluster (EMC 2.0) scheme was introduced on 1st April 2020 with an objective to create world class infrastructure along with common testing facilities, including Ready Built Factory sheds/Plug & Play infrastructure  for attracting Anchor unit along with their supply chain to set up their manufacturing/production facility in the country.

Under the Scheme, three Electronics Manufacturing Clusters over an area of 1,337 acres with project cost of Rs 1,903 crore, including Central financial assistance of Rs 889 crore have been approved which projected investment target of Rs 20,910 crore.

As a result of these initiatives by the Government, India has come a long way in electronics manufacturing in the past eight years.

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24-Mar-2023: Govt approves setting up of Electronics Manufacturing Cluster at Hubli-Dharwad in Karnataka

Union Minister of State for Skill Development & Entrepreneurship and Electronics & IT, Shri Rajeev Chandrasekhar announced in Bengaluru today the approval for setting of the Rs 180 crore worth Electronics Manufacturing Cluster (EMC) at Dharwad which is expected to create over 18,000 jobs.

The project, which is being set up at Kotur-Balur Industrial Area in Dharwad District of Karnataka under EMC 2.0 scheme, is expected to catalyse investments to the tune of over Rs 1,500 crore soon. Nine companies, including start-ups have already committed to make investment of Rs 340 crore with employment potential of 2,500 people.

“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,” the Minister said.

This EMC has strategic locational advantage and well connected with NH -48 (1 Km), Hubli Domestic Airport (33 Km) which will reduce the logistics/ transportation cost of the industry in the EMC. 

The Centre has already approved a Common Facility Centre (CFC) for development of an advanced testing facility in Mysore, Karnataka that will meet the various testing requirement of the industry.

The Modified Electronics Manufacturing Cluster (EMC 2.0) scheme was introduced on 1st April 2020 with an objective to create world class infrastructure along with common testing facilities, including Ready Built Factory sheds/Plug & Play infrastructure  for attracting Anchor unit along with their supply chain to set up their manufacturing/production facility in the country.

Under the Scheme, three Electronics Manufacturing Clusters over an area of 1,337 acres with project cost of Rs 1,903 crore, including Central financial assistance of Rs 889 crore have been approved which projected investment target of Rs 20,910 crore.

As a result of these initiatives by the Government, India has come a long way in electronics manufacturing in the past eight years.

2020

21-Mar-2020: Cabinet approves Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved financial assistance to the Modified Electronics Manufacturing Clusters (EMC2.0) Scheme for development of world class infrastructure along with common facilities and amenities through Electronics Manufacturing Clusters (EMCs).  It is expected that these EMCs would aid the growth of the ESDM sector, help development of entrepreneurial ecosystem, drive innovation and catalyze the economic growth of the region by attracting investments in the sector, increasing employment opportunities and tax revenues.

The Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme would support setting up of both Electronics Manufacturing Clusters (EMCs) and Common Facility Centers (CFCs).  For the purpose of this Scheme, an Electronics Manufacturing Cluster (EMC) would set up in geographical areas of certain minimum extent, preferably contiguous, where the focus is on development of basic infrastructure, amenities and other common facilities for the ESDM units.  For Common Facility Centre (CFC), there should be a significant number of existing ESDM units located in the area and the focus is on upgrading common technical infrastructure and providing common facilities for the ESDM units in such EMCs, Industrial Areas/Parks/industrial corridors.

Financial Implications: The total outlay of the propose EMC 2.0 Scheme is Rs. 3,762.25 crore (Rupees Three Thousand Seven Hundred Sixty Two Crore and Twenty Five Lakh Only) which includes the financial assistance of Rs. 3,725 crore (Rupees Three Thousand Twenty Five Hundred Crore Only) and administrative and management expense to the tune of Rs. 37.25 crore (Rupees Thirty Seven Crore and Twenty Five Lakh Only) over a period of eight (8) years.

Benefits: The Scheme will create a robust infrastructure base for electronic industry to attract flow of investment in ESDM sector and lead to greater employment opportunities.  Following are the expected outputs/outcomes for the Scheme:

  1. Availability of ready infrastructure and Plug & Play facility for attracting investment in electronics sector:
  2. New investment in electronics sector
  3. Jobs created by the manufacturing units;
  4. Revenue in the form of taxes paid by the manufacturing units

Background: To build and create requisite infrastructure ecosystem for electronics manufacturing; Ministry of Electronics and Information Technology (MeitY) notified Electronics Manufacturing Clusters (EMC) Scheme which was open for receipt of applications upto October, 2017.  A period of 5 years (i.e. upto October, 2022) is available for disbursement of funds for the approved projects.  Under EMC scheme, 20 Greenfield EMCs and 3 Common Facility Centres (CFCs) measuring an area of 3565 acres with project cost of Rs. 3898 crore including Government Grant-in-aid of Rs. 1577 crore have been approved in 15 states across the country.

There is a need for continuation of such scheme in modified form for further strengthening the infrastructure base for electronics industry in the country and deepening the electronics value chain.

India’s electronics production has increased from Rs. 1,90,366 crore (US$29 billion) in 2014-15 to Rs. 4,58,006 (US$ 70 billion) in 2018-19, at a Compound Annual Growth Rate (CAGR) of about 25%.  India’s share in global electronics manufacturing grew from 1.3% (2012) to 3.0% (2018).  It accounts for 2.3% of India’s GDP at present.