Among nine major projects worth ₹98.23 billion, Karnataka greenlights ₹34.25 billion investment in electronics manufacturing cluster by a Zoho-backed company.
Karnataka has recently approved an investment of ₹34.25 billion by Silectric Semiconductor Manufacturing Pvt Ltd, a company backed by the directors of Zoho. This project, which will be set up at the electronics manufacturing cluster in Kochanahalli, Mysuru, is expected to create 460 jobs.
This is among the nine industrial investment proposals worth a total of ₹98.23 billion that were greenlit in the 64th State High-Level Clearance Committee (SHLCC) meeting, chaired by Chief Minister Siddaramaiah. These investments are set to generate 5605 jobs across various industrial sectors.
One of the key proposals includes During the meeting, Siddaramaiah emphasised the significance of the state’s first semiconductor project in the Kochanahalli cluster, calling it a major milestone for Karnataka.
The state government had allocated 234 acres of land at Kochanahalli, located near Kadakola in Mysuru, to establish electronics manufacturing and semiconductor units. Additionally, the government is working on a new Electronics System Design and Manufacturing (ESDM) policy and has identified 901 acres of land across four industrial clusters for semiconductor projects. These include locations in Hubballi, Mysuru, Tumakuru, and Bengaluru Rural.
Despite these advancements, Karnataka’s ministers expressed concerns about the state’s challenges in attracting semiconductor firms. Priyank Kharge, the state’s IT and Biotechnology Minister, pointed out that despite efforts to secure investments worth ₹700 billion, semiconductor firms were being swayed to invest in Gujarat, which offers significant incentives.
Minister for Large and Medium Industries, MB Patil, also echoed these concerns, suggesting that similar incentives could help Karnataka compete more effectively for semiconductor investments.
In addition to these approvals, the SHLCC meeting also reviewed six existing investment proposals worth about ₹32.5 billion, which are expected to generate 1178 jobs. The meeting also addressed the issue of companies that acquire land from the Karnataka Industrial Areas Development Board (KIADB) but fail to start operations. Fines may be imposed on such companies, and adherence to government regulations was stressed.
