Three new proposals from states — Telangana, Maharashtra and Uttarakhand — for setting up electronics clusters under the new scheme, are under consideration by the Ministry of Electronics and Information Technology (MeitY), a top official said.
“Three applications have been received for setting up electronic manufacturing clusters (EMC) in the states of Telangana, Uttarakhand and Maharashtra which are being reviewed for approval,” Arvind Kumar, director-general, Software Technology Parks of India (STPI) said, adding that states such as Himachal Pradesh, Tamil Nadu, Karnataka and Bihar are in the process to apply for the Central scheme.
The state-run organisation, founded in 1991 to encourage and promote software export from India, also offers infrastructure, skilling, mentoring, and market connect to startups.
“In EMC 2.0, we already have two such clusters already approved with a proposed area of 1,040 acres with a development cost of Rs 1410-crore,” Kumar said.
Further, the official said that it is estimated that more than 45,000 direct job opportunities would be created through twin clusters.
Under the modified scheme, proposals from Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and Andhra Pradesh Industrial Infrastructure Corporation (APIIC) have already been approved by the MeitY.
In April, the Centre launched the Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme to offset disabilities faced by the sector, and to develop a robust electronics manufacturing ecosystem in the country, and to fortify the linkage between domestic and international market by strengthening supply chain.
Under the modified scheme, 50% of the development cost is borne by the government. With an increased scope, the EMC 2.0 allows at least 10% to 20% of the entire cluster to be taken up by an anchor or bigger unit which would further undertake their own investments.
“There is a traction around the scheme, and we are ensuring that there has to be a very clear-cut success criteria only then the government spends money out there,” the official added.
The Union Budget – 2022-23, according to Kumar, puts an emphasis on the usage of digital infrastructure for essential services, and a proposal for creation of an expert committee would facilitate investments faster and frictionless in the technology sector.
The official further said that following the budgetary proposal for the ambitious launch of digital currency, the organisation would offer handholding and necessary support to startups in line with the government’s vision.
The overall exports under the STPI-registered IT and ITes units increased from Rs 4.74 lakh crores in FY 2019-20 to nearly Rs 5 lakh crores in FY 2020-21. Fast Times