Government gives in-principle approval to Bhiwadi electronics cluster in Rajasthan

Though the final approval is still awaited, this is the third greenfield EMC approved by DeitY in a span of two months.

By Richa Chakravarty       

Monday, September 23, 2013: The Department of Electronics and Information Technology (DeitY) has granted ELCINA Electronics Manufacturing Cluster Pvt Ltd (EEMCPL) an in-principle approval for grant in aid, for its Bhiwadi cluster in Rajasthan under the Electronics Manufacturing Cluster (EMC) scheme. This greenfield cluster will be set up at Khuskhera over 100.66 acres of land at an estimated cost of Rs 1004.8 million.

The procedure

The in-principle approval is valid for six months, which can be extended by the steering committee for clusters (SCC), and to get the final approval, EEMCPL would need to form a special utility vehicle (SPV), and procure the land for the project from the Rajasthan government. “We would now need to work towards getting the final approval of the project and also get the grant from the government. We also need clearance from the Ministry of Environment and Forests for the project,” says Rajoo Goel, secretary general, ELCINA. The association is now working towards collecting at least 10 per cent of the stipulated financial contributions from its members, which is a major condition for getting the final approval for the project from the Central government. EEMCPL also has to prepare the detailed design for the project, estimate costs, and provide a firm implementation schedule specifying the activities and their timelines.

The members of this cluster have already submitted ‘keenness’ money to the Rajasthan State Industrial development and Investment Corporation (RIICO) to reserve the land at the Salarpur Industrial Area, Bhiwadi, Rajasthan, in favour of EEMCPL.

Industry’s reaction

The in-principle approval for the cluster comes as welcome news for the electronics industry. Commenting on the achievement, T Vasu, president, ELCINA, and director, Tandon Group, says, “The Bhiwadi electronics cluster is the first greenfield cluster in India to reach this stage. In fact, ELCINA has taken the lead in developing three electronics clusters in India.”

Says Vinod Sharma, managing director, Deki Electronics Ltd, a member of the Bhiwadi cluster, “This cluster is proof that India can competitively manufacture electronics hardware, even while the sector is facing the issue of zero per cent import duty. India’s ability to manufacture in this globally competitive market was written off by many experts and captains of industry. But ELCINA members are getting together to prove them wrong. This is indeed a laudable achievement.”

Congratulating ELCINA, Amit Jain, director, Duggar Power Products, says, “This truly is a great milestone achieved towards our common goal of developing electronics manufacturing clusters (EMCs) in India.”

This is the third approval for an EMC from the Ministry of Communications and Information Technology. The other two EMCs approved are located in Hyderabad — one near Fab City and the other at Maheswaram in Rangareddy district.

Break-up of project costs as approved in-principle by the steering committee for clusters