Thursday, March 06, 2014: The Odisha Industrial Infrastructure Development Corporation (Idco) has reportedly submitted a detailed project report (DPR) to the government of India, for setting up of a Electronics Manufacturing Cluster under GOI’s EMCs scheme.
The India Electronics & Semiconductor Association (IESA), the premier trade body that represents the Electronics System Design and Manufacturing (ESDM) industry prepared the DPR for this EMC cluster.
According to a Business Standard report, the proposed EMC will be developed over an area of about 216 acres in the Info-valley complex, on the outskirt of Bhubaneswar. Idco has sought an assistance of nearly Rs 960 million from the Centrat government for the same.
The GOI scheme helps set up of both, green field and brown field EMCs. Nearly 162 acres of land at Info-valley has been allotted for the ESDM sector, and the balance-land required for the cluster will be acquired soon. The National Policy on Electronics has set a target to achieve turnover of about $ 400 billion by 2020. For this, about $100 billion investment and generation of 28 million jobs is required.
The financial assistance will be given to a special purpose vehicle (SPV) that will be a legal entity duly registered for this purpose, and finance will come in the form of grant-in-aid, only. The EMC cluster in Bhubaneswar is a green field project, since there almost nil existing hardware industries in the state.
For greenfield EMCs, the assistance will be restricted to 50 per cent of the project cost, which is subject to maximum of Rs 500 million for every 100 acres of land. For brownfield EMCs, the assistance will be restricted to 75 per cent of the project cost subject to a maximum of Rs 500 million.
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.
