Centre sanctions electronic cluster in Bangalore

The project estimated to cost Rs 85 cr to be shared by both the central and state governments

The Karnataka government's proposal to undertake brownfield expansion of Electronic Manufacturing Cluster (EMC) at Electronic City near Bangalore has received the approval from the Centre. The project is estimated to cost Rs 85 crore to be shared by both the central and state governments.

"The Union government has given its nod for the country's first ever brownfield electronic manufacturing cluster at Electronic City in Bangalore. We have received a formal clearance letter from the Centre to this effect just four days ago," said SR Patil, minister for IT/BT and science and technology.

Speaking after inaugurating the Vision Summit organised by the India Electronics and Semiconductor Association (IESA), here today, Patil said the central government had agreed to finance a major share of Rs 50 crore, while the state government would give its share of Rs 19 crore. The rest will be funded by the industries concerned, he said.

"I am thankful to IESA members for preparing the detailed project report (DPR) and joining hands with the state government in getting it sanctioned from the Centre," he said.

Stating that the state government was committed to take the ESDM industries to other locations in the state, Patil said two more EMCs - one at Mysore and another at Peenya would be set up. "We will soon send detailed project reports to the Centre for its approval. Our mission is to become number one technology cluster on this planet by 2020," he said.

On the demand of the IT industry for getting one of the two semiconductor fab projects being proposed in the country, Patil said the Congress government in the state would leave no stone unturned to get at least one of the two fab projects.

Patil said to attract investments in the ESDM sector, the government would provide up to 10 per cent capital subsidy or Rs 5 crore, whichever is lower, to Karnataka-based ESDM companies (both for ESDM manufacturing as well as R&D units). The first two anchor units will get the benefit in all greenfield clusters.

"As many eight ESDM companies had registered with the IT-BT department recently and obviously they are entitled for various incentives and concessions under the new policy. Also, we give preference to state-based companies in government procurement of electronic products, under the new policy," Patil added.