Odisha has proposed to set up a world-class hardware and electronics park in the vicinity of the city on around 500 acres of land.
The state government plans to develop the park in collaboration with USA, Taiwan and European nations that are expected to offer technical knowhow for the park. The process of identification of land for the park has already taken off.
“A task force will be constituted to expedite the proposed park. The state government will spend Rs 200 crore on creation of basic infrastructure facilities for the project like road, power, water supply and data connectivity. It is also proposed to avail ASIDE (Assistance to States for Development of Export Infrastructure & Allied Activities) grant of Rs 40 crore during the 12th Plan period for this park,” said an official source.
Having attracted all the major players in software, the state government is now keen on developing the hardware and electronics sector.
Plans are afoot to frame a dedicated policy for IT hardware manufacturing for attracting investors in the sector. The move follows direction given by the Centre to all states to frame such policies for boosting growth of the IT hardware sector. It may be noted that states like Karnataka, Andhra Pradesh and Gujarat have already formulated such policies.
In the absence of specific incentives, the state was unable to pull investors in IT hardware and electronics space. The only major investment proposal was from Taiwan-based NuLight Corporation that planned to invest $200 million (around Rs 900 crore) on setting up a light emitting diode (LED) manufacturing unit in the state. The unit will manufacture the LED street lamps and household bulbs. The company also intended to set up an R&D (Research and Development) centre in the state on LED systems.
According to a report prepared by ICRA Management Consulting Services Ltd, electronics and hardware sector in the country has the potential to grow at a compounded annual growth rate (CAGR) of 17 per cent till 2022. Overall employment in the sector is expected to touch four million by then.
The demand for the sector would be driven predominantly by consumer electronics segment that is poised to clock high growth on the back of enhanced consumer spending. Telecommunication equipment whose growth will be fuelled mainly by increased mobile penetration in category-B and category-C telecom circles, will also contribute significantly to the sector's growth.
“Electronics manufacturing services and R&D (research and development) based exports will also be a major driver of growth in the industry. Increased value addition in these areas will further drive demand for production as well as sales, services and after-sales support which will have major implications in the demand for skilled human resources,” the report states.