The Ministry of Electronics and Information and Technology has given approval to set up two electronics manufacturing clusters in Telangana and Andhra Pradesh. Ajay Kumar, additional secretary, Ministry of Electronics and IT tweeted that the Centre has given approval for 500 acre electronic manufacturing cluster to be set up by APIIC in Chitoor in Andhra Pradesh and the project cost will be Rs 340 crore.
“Approval by @GoI_MeitY for 600 acre Electronic Mfg Cluster to be set up by TSIIC in Hyderabad. Project Cost Rs 667 cr.@TelanganaCMO @KTRTRS,” Kumar said in another tweet. Reacting to it, Telangana IT and industries minister KT Rama Rao tweeted, “thanks Ajay Ji (Ajay Kumar) for the good news.”
When contacted a senior official of Telangana Government said they applied for two clusters and approval for the second one is “awaited”.
He however, did not give any time-frame. Explaining about the cluster, the official said in a bid to reduce dependence on the import of electronic components from countries such as China and Korea, the Centre, in 2013 devised a scheme to encourage local manufacturing.
“Under the EMC scheme, the Ministry (Ministry of electronics and IT) would support about one third of the total project cost for setting up EMC. The rest of the fund has to be arranged by the respective state Government. The amount is used to create infrastructure for setting up electronic components manufacturing units,” the official told PTI. He said out of Rs 667 crore, the Centre will fund Rs 240 crore as grant and the rest would be mobilised by the state government and through units which are interested to set up shop in the cluster.
The Telangana Government has requested the Centre to sanction two EMCs – one e-city at Ravirial and another one Maheswaram Science Park at Maheswaram near the International Airport. Approval for the one at Maheswaram is yet to come, said the official.