Govt. Approves Electronics Manufacturing Cluster at Ranjangaon MIDC, Pune
14 December 2022: Under Modified Electronics Manufacturing Clusters (EMC 2.0) scheme, Government has accorded approval to Maharashtra Industrial Development Corporation (MIDC) on 31 October 2022 for the establishment of an Electronics Manufacturing Cluster (EMC) over an area of 297.11 acres at Ranjangaon Industrial area (Phase 3), Pune. The project involves an outlay of INR 492.85 Crore including a Central Grant-in-aid of INR 207.98 Crore. The fund will address the industrial infrastructure requirement of the electronics industry in the region. This EMC is projected to attract an investment of about INR 2,000 Crore and has the potential to generate over 5,000 employment opportunities in coming years after fully operationalized.
Semiconductors and displays are critical to establishing India as an electronics hub and will help attract suppliers and device assemblers to setup base in India. Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19% to reach $64 billion in 2026. And, Indian Government is to spend $30 billion to overhaul its tech industry and build local chip supply chains to avoid being dependent on foreign producers.
Government is very focused on its important objective of building the overall semiconductor ecosystem and ensure that, it in-turn catalyzes India’s rapidly expanding electronics manufacturing and innovation ecosystem. The government has approved the Semicon India program with a total outlay of INR 76,000 crore for the development of the semiconductor and display manufacturing ecosystem in the country.
The program has further been modified in view of the aggressive incentives offered by countries already having established semiconductor ecosystems and a limited number of companies owning advanced node technologies. The modified program aims to provide financial support to companies investing in semiconductors, display manufacturing, and design ecosystems. This will serve to pave the way for India’s growing presence in the global electronics value chains.