New Delhi, Sept 6 (KNN) The proposed electronic manufacturing cluster that has been approved by the Ministry of electronics and Information Technology is expected to attract investment of up to Rs 2,000 crore, senior officials said. 

“The central government will provide Rs 208 crore assistance for setting up the projects, ”ET reported.

The cluster which will come up in Ranjangaon Phase III, will be set up over an area of 297 acres.

“We expect the proposed cluster to give direct employment to up to 5,000 people. Proposals from Uttarakhand and Telangana are under consideration right now,” the official added. 

In 2020, the EMC scheme was modified with the aim to set up electronics manufacturing companies to create a robust ecosystem. The scheme’s objective is to provide financial assistance for setting up EMC projects as well as common facility centres (CFCs). 

EMC 2.0 requires applicants to make a minimum investment commitment of Rs 300 crore, with financial assistance from the central government capped at 50 per cent and a ceiling of Rs 70 crore per 100 acres of land. 

Of the total, 30 per cent is given to applicant companies as advance, while the next 40 per cent is released once the company utilises the fund allocated as advance and achieves milestones such as allotment of land.

The final instalment is released by the IT ministry after the project is completed. 

To review the progress of the scheme, a governing council has been setup. The council has the power to authorise necessary amendments to the scheme guidelines to ensure its successful implementation.  (KNN Bureau)