Indian Economy News

Modified Electronics Manufacturing Clusters (EMC 2.0) estimated to generate approx. 1.80 lakh jobs

The Government of India's Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme, notified in April 2020, is also fast-tracking the development of quality electronics manufacturing facilities in the country. This encourages the development of specialized clusters offering common facilities like plots in Industrial Parks, Ready Built Factory (RBF) sheds, and Plug and Play facilities to develop and position India's electronics industry at an international level. Till now, 11 EMC projects and 2 Common Facility Centers (CFCs) have been approved covering 4,399.68 acres, involving an aggregate project cost of Rs. 5,226.49 crore (US$ 635 million), including Central Government financial assistance of Rs. 2,492.74 crore (US$ 303 million). These are located in 10 States and are expected to attract an estimated investment of Rs. 1,46,846 crore (US$ 17.8 billion), which are also expected to provide around 1.80 lakh jobs. At least 10% of the saleable or leasable area in those clusters is allotted to RBF sheds, which are at various stages of execution.
Already, the investment commitment of Rs. 1,13,000 crore (US$ 13.7 billion) has been received from 123 land allottees, where 9 production units have started production, marking an investment of Rs. 12,569.69 crore (US$ 1.5 billion) along with the creation of jobs for 13,680 persons. The independent impact study, conducted by the National Institute for Micro, Small, and Medium Enterprises (MSME), under the Ministry of MSME, advocates enhancement in supply chain management, reduced logistics costs, and creation of substantial employment opportunities. The emphasis by the scheme on establishing the Public Financing Model for Regional Border Fabs or RBFs, as well as Plug-and-Play, is likely to appeal to investors, adding to the robust position of India as ‘the world hub for electronics manufacturing.’ Union Minister of State for Electronics & Information Technology Mr.  Jitin Prasada presented this in the Lok Sabha.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.