Goverment offer Rs.50 cr for each Electronics Cluster

In a fresh attempt to accelerate domestic electronics manufacturing, the Cabinet has approved a proposal to offer financial support of up to Rs.50 crores for setting up of electronics manufacturing clusters (EMCs). The proposed EMCs scheme would support setting up of both Greenfield and Brownfield clusters. "These EMCs would aid the growth of the electronics systems design and manufacturing (ESDM) sector, help development of entrepreneurial ecosystem, drive innovation and catalyse the economic growth of the region by increasing employment opportunities and tax revenues," the government stated in its release. The scheme is also expected to help flow of investment for the development of world-class infrastructure specifically targeted towards attracting investment in the ESDM sector. Under the scheme, the assistance would be provided to a special purpose vehicle (SPV). 

The SPV may be promoted by private companies, industry associations, financial institutions, R&D institutions, state or local governments or their agencies and units within the EMC. The SPV should consider including an academic/research institution to be part of the proposed SPV for suitable academic-industry linkages. The financial assistance to the SPV shall be 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 acre of land. For Brownfield EMCs the assistance will be restricted to 75 per cent of the project cost subject to a ceiling of Rs.50 crore. The scheme would be open for applications for five years from the date of notification. The draft National Policy on Electronics (NPE) aims to achieve a domestic production of about Rs.21.86 lakh crore ($400 billion) by 2020 in the ESDM sector; and create nearly 2.8 crore jobs.

Source: The EE Times.