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The India Electronics and Semiconductor Association (IESA) has signed a deal with the Maharashtra government for developing an electronic manufacturing cluster in Pune.
IESA, a trade body representing the Indian electronic system design and manufacturing (ESDM) industry, signed a memorandum of understanding with the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) for collaboration on the project.
The Pune cluster is being developed under the department of electronics and information technology’s (DeitY) electronic manufacturing clusters (EMC) scheme.
The ESDM industry is estimated to reach $400 billion and will need a cumulative investment of about $100 billion to be able to generate employment for about 28 million people.
The proposed brownfield cluster—a term used for clusters where some enterprises already exist—is one step in achieving this, offering opportunities to the electronics industry, academia and other stakeholders.
Under the EMC scheme, a special purpose vehicle (SPV) in the form of a public limited company will be set up to implement the project. MICCA, along with private companies, industry associations, financial institutions, research and development institutions, state or local governments or their agencies and units within the EMC will lend their support to the SPV.
“The state government has identified ESDM as a sector of focus. As one of the salient initiatives in this direction, the state has decided to set up three brownfield EMCs at Pune, Aurangabad and Navi Mumbai. EMC will provide common facilities for production and R&D support services which will benefit the local companies. Besides the funding support available from DeitY, government of India under its EMC scheme, the state will also extend its proactive support to enable these clusters to be set up at the earliest,” said P. Anbalagan, joint chief executive officer, Maharashtra Industrial Development Corporation.
“MCCIA is thrilled to have IESA onboard for the brownfield EMC setup in Pune and envisions the ESDM sector to achieve the same zenith of success,” said Anant Sardeshmukh, director general, MCCIA.
IESA chairman Ashok Chandak said, “IESA is closely working with government and industry to make India a default destination for electronics design-led manufacturing. Leveraging the initiatives of MIDC and entrepreneurial ecosystem, the electronics sector can catalyse the economic growth of the region.”
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