AURANGABAD: The move to establish the electronics manufacturing cluster (EMC) at Shendra Five Star industrial area has been put on the fast track with the Maharashtra government recommending a detailed project report (DPR) to the Centre on Thursday for establishing the Brownfield Cluster in Aurangabad under the aegis of the Chamber of Marathwada Industries and Agriculture (CMIA). Earlier, the Union Government had allocated Rs 50 crore for the project which set Aurangabad to emerge among the eight locations in the country to develop EMC soon.

In view of setting up the EMC in Aurangabad, the principal secretary (industries) had invited CMIA and Deogiri Electronics Cluster representatives to review activities of the chamber’s Brownfield Cluster. “The meeting was attended by cluster development cell representatives Suresh Todkar, Vinayak Deolankar, Milind Patil and MIDC official V Rajale,” CMIA vice-president and convener of the cluster development cell Ashish Garde said.

“During the meeting, principal secretary (industries) Apurva Chandra recommended the DPR to the Union government, which was submitted by Deogiri Electronics Cluster Pvt. Ltd,” he said, adding that the Deogiri Electronics Cluster Pvt. Ltd is now awaiting for the approval from the Department of Electronics and Information Technology (DEITY), Government of India.

Garde said, “The scheme covers production of products across the value chain from raw material, components, design and chip, assembly, testing, research and development and packaging. The government has allocated Rs 10,000 crore for M-SIPS in the 12th Five-Year Plan and has selected eight new areas for M-SIPS, including Aurangabad, Ghaziabad, Vadodara, Ahmedabad, Gandhinagar, Nagpur, Nasik and Thane.”

He added, “The work has been fast-tracked and an SPV, called Deogiri Electronics Cluster Pvt.Ltd., Aurangabad, formed for establishing the Brownfield Cluster at Aurangabad under the aegis of the apex body of industries.”

Garde said, “Focused on promoting India as an electronics manufacturing hub, the Union government recently identified eight cities, where companies setting up such facilities will be eligible for incentives including subsidy. Under the modified Special Incentives Package Scheme (M-SIPS) notified in July 2012, the government would be providing refunds on capital expenditure for new units or for expansion of more than 25% of the existing capacity in Brownfield Electronics Manufacturing Cluster.”

“Looking to growing demand of electronics and dependency on imports, Government of India has launched concept of Brownfield Electronics Cluster, where in the existing EMC in this field who have got potential synergies to grow with the help of world class infrastructure and facility funded by the government, can come together to form the SPV and implement cluster concept for growth and development of electronic industries by strengthening the research and development back-up in the region,” he said.

“At least seven EMCs are required as SPV members who will raise 15% equity on their own, 75 % will be funded by the government and the remaining 10% can be raised by way of bank borrowing or can be fund by State Government. Presently Maharashtra state does not have electronic policy, however, states like Karnataka have already electronic policy to fund 10% for clusters. However, the MIDC is a nodal agency in Maharashtra and is actively supporting cluster,” he added.

“Aurangabad has a suitable climatic conditions and geographical location, along with logistics and support from training and educational institutions to promote electronics industries in a big way. The city would be an ideal place to develop Brownfield Cluster, as a number of tiny, small and medium enterprises are already involved in manufacturing value-added components to support the electronics industry, considering the progress of the Delhi-Mumbai Industrial Corridor(DMIC), the cluster would prove extremely beneficial to the region,” he said.

Land application had also been filed with the MIDC for the setting up of this Brownfield Electronics Manufacturing Cluster at Shedra MIDC Aurangabad.

“A couple of days ago, the MIDC too issued a comfort letter on the basis of DPR submitted by the SPV for allotting the land in the name of Deogiri Electronics Cluster Pvt.Ltd.(SPV), Aurangabad at Shendra Five Star Industrial Area,” Garde said.

CMIA aims to project the electronic cluster as a showcase model from Aurangabad’s marketing point of view and it will encourage the existing EMC companies and the upcoming entrepreneurs, who need not bother for huge investment required for electronic manufacturing and testing facility.

The scheme covers production of products across the value chain from raw material, components, design and chip, assembly, testing, research and development and packaging. The government has allocated Rs 10,000 crore for M-SIPS in the 12th Five-Year Plan and has selected eight new areas for M-SIPS, including Aurangabad, Ghaziabad, Vadodara, Ahmedabad, Gandhinagar, Nagpur, Nashik and Thane.

