India’s first cluster for electronics component to create 15,000 jobs

- Advertisement -
- Advertisement -

By Richa Chakravarty

ELCINA (Electronic Industries Association of India) and Vittal Innovation City (VIC) entered into a joint venture (JV) to establish the country’s first cluster to manufacture electronics components. N Vittal, chairman, VIC, and Pawan Sharma, vice president, ELCINA, signed the MoU on February 3, 2012 in New Delhi. Currently, 21 companies including among others, Deki Electronics, Dixon Technologies, Elin Electronics, Sahasra Electronics, OEN India, Tandon Group and Victor Component Systems, have come together under the ELCINA banner to be a part of this cluster. The project is expected to shape up within a year.

ELCINA is into its first cluster model, which would assist the SMEs to manufacture electronic components and products for consumer electronics, power electronics and the lighting industry. Says N Vittal, “Unlike any other special economic zone (SEZ), this cluster will provide knowledge based services, manufacturing, R&D and incubation activities, which will create a synergy between industry and academia.”

- Advertisement -

The cluster will house training facilities for manpower development, housing for workers, research facilities, testing laboratories and supply chain support to provide a comprehensive ecosystem for electronics component and equipment manufacture.

ELCINA will establish an SPV for owning, managing and operating the cluster and VIC will be a partner and support the SPV in managing its operations. VIC will shoulder responsibilities of running the cluster based on its strengths. Initially VIC will provide support in value added services such as training, innovation, technology acquisition and financial guidance for the members Subsequently they would expand their role to include capital investment, identifying and acquiring land, providing common infrastructure as well as incubation of new ventures and technology.

Funds for the cluster

The Central government will provide funding not exceeding Rs 500 million (Rs 50 crore) per park of 100 acres, in addition to government equity, participating members will also invest in setting up their manufacturing facilities in this cluster.

According to Rajoo Goel, secretary general, ELCINA, this cluster will be developed in north India. “We have received positive indications from the Rajasthan government as well.”

An MoU has also been signed with the Institute of Information and Technology (IIT), Taiwan, to help companies to gain access to all Taiwanese companies. “If a member company requires a particular technology, it can mapped against what is available with the Taiwanese company and enable the creation of a JV or technology transfer. Also, Taiwanese companies have about 400 courses available, to train and help in skill development. Member companies can have access to this knowledge and customise it according to Indian conditions,” shares A Gururaj, managing director, VIC.

Generating jobs

These clusters will also help in generating jobs. According to Vinod Sharma, managing director, Deki Electronics, “in the coming five years, this cluster concept will generate 20 million jobs in the country. Right from the operator and the middleman, to the higher levels of management, this cluster will generate 15,000 new jobs in the next two years.”

The biggest concern of the electronics industry is the long gestation period for earning returns on investments and the high costs which make it impossible for high value added electronics manufacturing to be viable. It is hoped that with the formation of this cluster, investors will earn an ROI 20-30 per cent within 3 years.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive

Six Steps To Building Better Business Assets

0
In the journey of asset-building, solving good problems trumps battling bad ones. Dive into six essential steps for building and leveraging effective assets—the game-changer...

India’s Solar Capacity Installation Down By 44.1%, Delayed Projects To Add To 2024 Installations

0
Large-scale solar installations saw a notable decline of 50.8% YoY to 5.8 GW from 11.7 GW in 2022, constituting 77.2% of the annual capacity...

Infineon Technologies Sells Manufacturing Sites To ASE

0
This strategic move aims to balance in-house and external manufacturing for profitable growth, leveraging mutual synergies between the companies to drive industry growth and...

Buzz

Bajaj Auto And Magna Increase Their Ownership In Yulu

0
Returning investors Bajaj Auto and Magna have invested $19.25 million in shared electric mobility company Yulu as part of a Series B round of...

BIWIN And Lenovo Collaborate To Launch SSDs In India

0
Lenovo SSDs deliver high-performance storage solutions catering to both consumer and business needs. BIWIN has partnered with Lenovo to introduce the latest Lenovo-branded SSDs in...

IIT Guwahati And Edurade Launch India’s Largest Remote Pilot Training Program

0
This first-of-its-kind training program is specifically designed for Junior Commissioned Officers (JCOs) and other officers, aiming to modernise the operations of the armed forces.  The...

Important Sectors

India’s Solar Capacity Installation Down By 44.1%, Delayed Projects To Add To 2024 Installations

0
Large-scale solar installations saw a notable decline of 50.8% YoY to 5.8 GW from 11.7 GW in 2022, constituting 77.2% of the annual capacity...

Bajaj Auto And Magna Increase Their Ownership In Yulu

0
Returning investors Bajaj Auto and Magna have invested $19.25 million in shared electric mobility company Yulu as part of a Series B round of...

IIT Guwahati And Edurade Launch India’s Largest Remote Pilot Training Program

0
This first-of-its-kind training program is specifically designed for Junior Commissioned Officers (JCOs) and other officers, aiming to modernise the operations of the armed forces.  The...

Servotech Secures Order For 1500 DC Fast EV Chargers From HPCL And OEMs

0
Servotech Power Systems Ltd. secures a significant order for 1500 DC fast EV chargers from HPCL and other OEMs, valued at 102 crores, to...

CIL Announces 3GW Solar Projects, Aims For 5GW RE Addition

0
CIL is laying the groundwork for its 5 GW renewable energy goal. Coal India Limited (CIL) has announced its plans to set up 3 gigawatts...

Manufacturing

Applied Ventures Funds VVDN Technologies

0
The investment demonstrates Applied Ventures' dedication to promoting innovation, collaboration, and entrepreneurship within the semiconductor and electronics manufacturing sectors. Applied Ventures, LLC, the venture capital...

Haryana EV-CO To Manufacture L3, L5 EVs At New Plant

0
The EV maker is self-funded and operates a modern manufacturing facility with cutting-edge technology and equipment. It specializes in producing two and three-wheelers, with...
Sona Comstar

Sona Comstar: First Indian Auto Supplier With PLI Certification

0
Sona Comstar, a leading EV traction motor manufacturer in India, receives PLI certification for its electric two-wheeler traction motor. Sona BLW Precision Forgings, commonly known...

Indian Manufacturers To Get Chinese Mobile Production Orders

0
Dixon has secured an order from Oppo for making phones, with an order size of around 5-6 lakh units per month.  Chinese firms have finally...

VinFast To Begin Construction Of TN Factory On Feb 25

0
The collaboration between VinFast and the Tamil Nadu Government commenced with the signing of a Memorandum of Understanding (MoU) on January 6, 2024. This...