New Delhi [India], Mar 21 (ANI): The Union Cabinet has approved financial assistance to the Modified Electronics Manufacturing Clusters (EMC2.0) Scheme which would support setting up of both Electronics Manufacturing Clusters (EMCs) and Common Facility Centres (CFCs).
The EMCs will aid the growth of the ESDM sector, help the development of the entrepreneurial ecosystem, drive innovation and catalyse the economic growth of the region by attracting investments in the sector, an official release said on Saturday.
It said the EMCs would be set up in geographical areas of certain minimum extent, preferably contiguous, where the focus is on development of basic infrastructure, amenities and other common facilities for the ESDM units.
For the Common Facility Centre (CFC), there should be a significant number of existing ESDM units located in the area and the focus is on upgrading common technical infrastructure and providing common facilities.
The total outlay of the EMC 2.0 Scheme is Rs 3,762.25 crore, which includes the financial assistance of Rs 3,725 crore and administrative and management expense to the tune of Rs 37.25 crore over a period of eight years.
The release said that the scheme will create a robust infrastructure base for the electronic industry to attract the flow of investment in the ESDM sector and lead to greater employment opportunities.
The scheme is expected to ensure the availability of ready infrastructure and plug and play facility for attracting investment in the electronics sector:
The release said that the Ministry of Electronics and Information Technology (MeitY) notified Electronics Manufacturing Clusters (EMC) Scheme to build and create requisite infrastructure ecosystem for electronics manufacturing.
A period of five years, that is up to October 2022, is available for disbursement of funds for the approved projects.
Under EMC scheme, 20 greenfield EMCs and three Common Facility Centres (CFCs) measuring an area of 3565 acres with the project cost of Rs 3,898 crore have been approved in 15 States across the country. The cost also includes government grant-in-aid of Rs 1577 crore.
The release said there is a need for continuation of such scheme in modified form to further strengthen infrastructure base for the electronics industry in the country and deepen electronics value chain.
India's electronics production has increased from Rs 1,90,366 crore (US$29 billion) in 2014-15 to Rs 4,58,006 (US$ 70 billion) in 2018-19, at a compound annual growth rate (CAGR) of about 25 per cent.
India's share in global electronics manufacturing grew from 1.3 per cent (2012) to 3 per cent (2018). It accounts for 2.3 per cent of India's GDP at present. (ANI)