Press Information Bureau
Government of India
Ministry of Communications
24-August-2012 17:27 IST
Electronic Manufacturing Clusters

A well developed Electronics Manufacturing Cluster (EMCs) can give a unit located in it a cost advantage of 5 to 8 percentage due to increased supply chain responsiveness, consolidation of suppliers, decreased time-to-market, superior access to talent and lower logistics costs.

Recently, the Cabinet approved a proposal to offer financial support for the development of EMCs as it would aid the growth of Electronics Systems Design and Manufacturing (ESDM) sector, help development of entrepreneurial ecosystem, drive innovation and catalyze the economic growth of the region by increasing employment opportunities and tax revenues.

The scheme would support setting up of both Greenfield and Brownfield EMCs. The main features of the proposed EMC Scheme are as follows:

(i) The assistance would be provided to a Special Purpose Vehicle (SPV) which should be a legal entity duly registered for this purpose. The SPV may be promoted by private companies, industry associations, financial institutions. R&D institutions, State or Local Governments or their agencies and units within the EMC. The SPV should consider including an academic/research institution to be part of the proposed SPV for suitable academic-industry linkages.

(ii) The Financial assistance to the SPV shall be in the form of grant-in-aid only. For Greenfield EMCs, the assistance will be restricted to 50% of the project cost subject to a ceiling of Rs. 50 crore for every 100 acres of land. For Brownfield EMCs, the assistance will be restricted to 75% of the project cost subject to a ceiling of Rs. 50 crore.

(iii) The Scheme will be open for applications for five years from the date of notification

This information was given by the Minister of State for Communications & Information Technology Shri Sachin Pilot in a written reply in the Rajya Sabha today.