Domestic electronic component makers have plans to invest over Rs 1,000 crore this year on manufacturing units in the ELCINA Bhiwadi Cluster. ”The space in the cluster has been allocated to 19 domestic electronic components makers as of now. Together they are planning to invest over Rs 1,000 crore in phase 1 which is expected to be completed by October this year,” ELCINA Secretary General Rajoo Goel told PTI.

The ELCINA Electronics Manufacturing Cluster (EMC) is spread over 100 acres in Bhiwadi, Rajasthan, and is to be completed in two phases. ”We expect direct employment in the range of 5,000-6,000 people and indirect employment of up to 12,000 in phase 1. We have utilized 28 acre of land as of now. Besides domestic component makers, we are also in talks with foreign component makers based out of Taiwan to set up their units here,” Goel said.

Investors in the cluster include Sahasra Electronics, Deki Electronics, Elin Electronics, Fiem Industries, Digital Circuits, Kraft Box and E-Durables. The companies investing in EMC are involved in sectors such as consumer appliances, PCB Assembly, contract manufacturing, mobile phone accessories, solar lanterns, plastic molding, LED Lighting Products and TVs.

Goel said the proposed Dedicated Freight Corridor (DFC) runs alongside the cluster plot which will give them advantage to quickly ship their product to the market. ”The importance of this Cluster lies in providing an efficient manufacturing environment and reducing costs. This would enable domestic manufacturers to compete globally, export more and reduce import dependence,” he said.

Units that will be set-up in this cluster will get various incentives including capital subsidy up to 25 percent of capital expenditure of the project besides refund of indirect taxes paid on capital equipment. The Ministry of Electronics and IT has given Rs 20.24 crore for this cluster under the EMC scheme. The funds will be used for developing basic infrastructure and facilities in Phase-I including IT and Telecom, training center, support services for manufacturing and hostels for employees.

Government has approved 28 EMCs till date. However, Elcina expects that Bhiwadi EMC is likely to be first to start production.