The proposed electronics product and component manufacturing cluster, the first of its kind, is expected to receive an initial investment of Rs 500 crore, a top industry official said today.
“We expect this cluster to attract an initial investment of Rs 500 crore, with land and basic infrastructure amounting to Rs 200 crore,” Mr Pawan Sharma, Vice-President of ELCINA (Electronics Industries Association of India), told PTI.
He added that the cluster will be set up near Delhi and ELCINA is in talks with Rajasthan, Uttar Pradesh and Haryana governments for this. ELCINA is setting up the cluster in collaboration with Vittal Innovation City (VIC).
“The layout plan for the cluster is based on 40 companies. We already have 21 companies who are interested in becoming part of this cluster. In a year’s time, we will start setting up this,” Mr Sharma said.
“It will be set up in an area spread over 100 acres. We want to replicate architectures that are present in electronics manufacturing destinations across world,” VIC Chairman, Mr N. Vittal, who is also a former Chairman of Telecom Commission, said.
The draft National Policy on Electronics has proposed to set up 200 clusters in the country.
“Around 90 per cent of electronics requirement in the country is met through imports. It is an opportunity for domestic manufacturers. We are in discussion with organisations in Taiwan to provide technology support for the cluster,” VIC Managing Director, Mr A. Gururaj, said.
Draft Electronics Policy
According to the Draft Electronics Policy, demand for electronics product in the Indian market was $ 45 billion and domestic production was about $20 billion in 2008-09. This demand is expected to reach $400 billion by 2020.
At the current rate of growth, the domestic production can cater to a demand of $100 billion in 2020 against a demand of $400 billion and the rest would have to be met by imports, resulting in demand supply gap of nearly $300 billion.
The Government in the proposed policy has set an objective of creating an eco-system for a globally competitive electronics sector in the country. It also aims to achieve a turnover of about $400 billion by 2020 involving investment of about $100 billion and employment to around 28 million people at various levels.
To achieve these, the government has proposed to provide incentive to over 200 clusters in the country.