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Govt approves SPV proposal for electronic clusters

Monday, 23 Dec 2013

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The Ministry of Finance has given approval to establish an SPV for implementation of electronics manufacturing clusters (EMC).

The proposal has been put forward by the Department of Electronics and Information Technology. The detailed guidelines for forming an SPV for electronics manufacturing clusters will soon be notified by the Department of Electronics and Information Technology.

In July 2012, the Cabinet had approved the proposal to provide financial assistance for the development of electronics manufacturing clusters. The government will provide financial assistance through SPVs governing them.

For new EMCs, the assistance will be upto 50 per cent of the project cost, subject to a ceiling of Rs 50 crore for every 100 acre of land. For brownfield EMCs, the assistance limit is upto 75 per cent of the project cost, subject to a ceiling of Rs 50 crore.

The government has proposed to set up 200 clusters to promote manufacturing in the sector under the National Policy on Electronics.

The Department of Electronics and Information Technology has already approved 18 EMCs till date. The department is going to notify 10 more such clusters in Andhra Pradesh, Madhya Pradesh, Rajasthan and Tamil Nadu.