Govt okays electronic manufacturing cluster in Hubli; second in Karnataka

Govt eyes investments worth over Rs 1,500 cr, creation of over 18,000 jobs. Nine companies have already committed to making investments of Rs 340 crore with an employment potential of 2,500

The government on Friday approved an electronics manufacturing cluster (EMC) in Dharwad district of Karnataka, with an expectation to bring investments worth over Rs 1,500 crore and generate 18,000 jobs.

Spread over an area of 224.5 acres in Kotur and Belur Industrial Area in Dharwad, the project will cost Rs 179.14 crore. Nine companies, including some start-ups, have already committed to making investments of  Rs 340 crore with an employment potential of 2,500 people, Ministry of Electronics and IT (MeitY) said.

This is the second EMC in Karnataka after the Centre in 2015 announced setting up a Common Facility Centre (CFC) for the development of an advanced electronic testing facility in Mysore, Karnataka to meet the various testing requirements of the industry.

EMCs offer manufacturers facilities with the advanced infrastructure required for electronic manufacturing. Some of the incentives include common testing facilities, ready-built factory sheds, plug-and-play infrastructure for attracting anchor units along with improved supply chains to set up their manufacturing facility in the country.

The new project will target the production of industrial and consumer electronics, solar manufacturing, e-mobility products and components. The EMC is projected to operationalise in the next 24 months. The Centre and the Karnataka government will set up the cluster with a 50:50 partnership. MeitY under Software and Technology Parks of India (STPI) has allotted a total financial assistance worth Rs 89 crore. Karnataka Industrial Area Development Board (KIADB) will implement the project.

The project is a part of the central government’s modified Electronics Manufacturing Cluster (EMC 2.0) scheme notified in April 2020, which aims to boost the electronics manufacturing AtmaNirbhar Bharat mission.

So far, three EMCs over an area of 1,337 acres with a project cost of Rs 1,903 crore -- including Central financial assistance of Rs 889 crore-- have been approved. The total projected investment under EMCs now stands at Rs 20,910 crore.

“Characterised by a strategic locational advantage, the newly approved EMC is well connected with NH -48 and (will be) just 33-km far from Hubli Domestic Airport. The approved processing area is 199.6 acres or 86.23 per cent of the total area,” MeitY said while announcing the project.