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The Odisha Industrial Infrastructure Development Corporation (Idco) has submitted the detailed project report (DPR) to the Centre for setting up of a Electronics Manufacturing Cluster (EMC) under the latter’s EMCs scheme.
“The proposed EMC will be developed over an area of about 216 acres in the Info-valley complex, on the outskirt of Bhubaneswar. We have sought an assistance of about Rs 96 crore from the Centre for this cluster,” said a source.
The India Electronics & Semiconductor Association (IESA), the premier trade body representing the Electronics System Design and Manufacturing (ESDM) industry, has prepared the DPR for the EMC cluster at Info-valley.
The central government scheme supports setting up of both green field and brown field EMCs. About 162 acres of land at Info-valley is earmarked for the ESDM sector and the balance land required for the cluster will be acquired soon. The EMC cluster in Bhubaneswar will be a green field project as there are hardly any existing hardware industries in the state.
Under the scheme, the assistance will be provided to a special purpose vehicle (SPV), which will be a legal entity duly registered for this purpose. The SPV may be promoted by private companies, industry associations, financial institutions, research & development institutions, state or local governments or their agencies and units within the EMC.
The financial assistance to the SPV will come in the form of grant-in-aid only. For greenfield EMCs, the assistance will be restricted to 50 per cent of the project cost subject to a ceiling of Rs 50 crore for every 100 acres of land and for the brownfield EMCs, the assistance will be restricted to 75 per cent of the project cost subject to a ceiling of Rs 50 crore.
The state government has already prepared a strategic road map for the growth of the ESDM sector in the state. The state’s new Information and Communication Technology Policy-2014 offers a number of incentives to attract investors both from the software and hardware industry.
The National Policy on Electronics has set a target to achieve turnover of about $ 400 billion by 2020. This would require about $100 billion investment, generating 28 million jobs.
