About 20 companies ready to invest in electronics clusters

Within a week government clearing a scheme to promote domestic production of electronics items, about 20 companies have expressed interest in setting up manufacturing units in two clusters to be set up in Rajasthan and Andhra Pradesh.

Electronics components makers’ association ELCINA, which is promoting the two clusters at Bhiwadi (Rajasthan) and Ananthpur (Andhra Pradesh), said that 15 to 20 companies have confirmed their interest in setting up units.

“We have taken the lead in developing the first two clusters … Member groups of 15 to 20 companies which have confirmed their interest have been formed for these model clusters,” ELCINA President T Vasu told reporters.

Vasu, who is also director of Tandon Group, did not disclose details of proposed investment, but said that the companies which have expressed interest in setting up units are all Indian firms.

“The response has come even before the promotion of these clusters. Around nine companies have registered to invest in Bhiwadi cluster which is yet to inaugurated,” ELCINA Secretary General Rajoo Goel said.

The government on July 3 approved the Electronics Manufacturing Cluster scheme which aims to reduce the country’s dependence on imports for various electronics items.

The government will provide financial support of up to Rs 50 crore for setting up a cluster which will house eco-system required for manufacturing specific kinds of devices.

The country imports electronics items worth about USD 40 billion, at present, according to ELCINA. The National Electronics Policy draft forecasts such imports to touch a humongous USD 300 billion by 2020.

Under the proposed National Electronics Policy, government will provide incentives for setting up 200 clusters across the country.

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