Electronics Manufacturing Clusters Set to Create 1.8 Lakh Jobs in India

Overview of the Modified Electronics Manufacturing Clusters

New Delhi, Dec 17: The Modified Electronics Manufacturing Clusters (EMC 2.0) initiative, spanning across ten states, is projected to attract investments totaling Rs 1,46,846 crore and is expected to create approximately 1.80 lakh job opportunities, as reported to Parliament on Wednesday.

Jitin Prasada, the Union Minister of State for Electronics and IT, provided this information in a written response during a Lok Sabha session, noting that 11 EMC projects and 2 Common Facility Centre (CFC) projects have received approval to date.

These projects will cover a total area of 4,399.68 acres, with an estimated project cost of Rs 5,226.49 crore, which includes a Central financial assistance of Rs 2,492.74 crore.

Additionally, the EMC 2.0 scheme mandates that at least 10% of the leasable area within each cluster be allocated for Ready Built Factory (RBF) sheds.

The construction of these RBF sheds within the approved EMC 2.0 parks is currently underway.

So far, an investment commitment of Rs 1,13,000 crore has been secured from 123 land allottees (manufacturers) involved in the approved EMCs. Out of these, nine units have commenced production, contributing an investment of Rs 12,569.69 crore and generating 13,680 jobs, according to the minister.

An independent assessment of the EMC 2.0 Scheme was carried out by the National Institute for Micro, Small and Medium Enterprises under the Ministry of MSME.

The findings of this assessment indicate significant advancements in electronics manufacturing infrastructure, enhanced supply-chain efficiency, availability of RBF/Plug-and-Play facilities, cost-effective logistics, and considerable direct and indirect job creation, along with improved skill development within the cluster ecosystem, Prasada stated.

The government introduced the Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme in April 2020, aimed at fostering the establishment of top-tier electronics manufacturing infrastructure through the funding of dedicated clusters with shared facilities.