Union Minister of State for Skill Development & Entrepreneurship and Electronics & IT, Rajeev Chandrasekhar, recently announced the approval for setting up an Electronics Manufacturing Cluster (EMC) in Dharwad, Karnataka. This project is expected to create over 18,000 jobs and will be set up at the Kotur-Balur Industrial Area in the Dharwad district of Karnataka under the EMC 2.0 scheme.

Karnataka as an Electronics Manufacturing Hub

Karnataka is emerging as a global hub for electronics manufacturing, just as it is already a telecom hub with Apple plants in Kolar (Wistron) and Devanahalli (Foxconn). The state government is actively promoting investment in the electronics sector, and this new EMC is a step towards further enhancing the state’s position in the industry.

Electronic Manufacturing Clusters (EMC) Scheme

The EMC scheme was launched in 2012 to provide support for the creation of world-class infrastructure for attracting investments in the Electronics Systems Design and Manufacturing (ESDM) sector. The scheme provides grant assistance for both greenfield and brownfield EMC projects. For greenfield EMC projects, 50% of the project cost is provided subject to a ceiling of Rs. 50 crore per every 100 acres of land. For brownfield EMC projects, 75% of the project cost is provided subject to a ceiling of Rs. 50 crore per project.

The aim of the EMC scheme is to make India a global player in the field of electronics manufacturing and to offset disabilities faced by industries due to lack of reliable infrastructure.

Modified Electronics Manufacturing Cluster (EMC 2.0) Scheme

The Modified EMC 2.0 scheme was introduced in 2020 with the objective of creating world-class infrastructure along with common testing facilities, including Ready Built Factory sheds/Plug & Play infrastructure for attracting Anchor unit along with their supply chain to set up their manufacturing/production facility in the country. The scheme provides financial assistance for the setting up of both EMC projects and Common Facility Centres (CFCs) across the country.

Under the scheme, the Centre and the state government will set up the cluster with a 50:50 partnership. The EMC 2.0 scheme is open for receipt of applications for a period of 3 years from the date of notification, and a further period of 5 years is available for the disbursement of funds to the approved projects.

The Future of Electronics Manufacturing in India

The electronics manufacturing industry is a key focus area for the Indian government, and initiatives like the EMC and EMC 2.0 schemes are aimed at promoting investment and creating jobs in the sector. The government is also promoting the development of electronics manufacturing clusters in other parts of the country, such as Andhra Pradesh, Telangana, and Uttar Pradesh.

The COVID-19 pandemic has highlighted the need for self-sufficiency in key sectors such as electronics manufacturing, and India has the potential to become a major player in the global electronics market. With the right policies and incentives, India can attract more investment in the sector and create a large number of jobs for its growing population.

Why In News

Union Minister of State approves EMC project in Dharwad, Karnataka, expected to generate 18,000 employment opportunities. The project is part of the government’s efforts to make India a global player in electronics manufacturing, attracting investment in the Electronics Systems Design and Manufacturing sector.

MCQs about EMC 2.0 Scheme

  1. What is the Electronics Manufacturing Clusters (EMC) scheme?
    A. A scheme to create world-class infrastructure for investments in the Electronics Systems Design and Manufacturing (ESDM) Sector.
    B. A scheme to support small-scale electronic manufacturers.
    C. A scheme to provide financial assistance for setting up solar power plants.
    D. A scheme to provide subsidies to telecom companies.
    Correct Answer: A. A scheme to create world-class infrastructure for investments in the Electronics Systems Design and Manufacturing (ESDM) Sector.
    Explanation: The Electronics Manufacturing Clusters (EMC) scheme was launched in 2012 to provide support for the creation of world-class infrastructure for attracting investments in the Electronics Systems Design and Manufacturing (ESDM) Sector.
  2. What is the Modified Electronics Manufacturing Cluster (EMC 2.0) scheme?
    A. A scheme to provide financial assistance for setting up both EMC projects and Common Facility Centres (CFCs) across the country.
    B. A scheme to provide subsidies for small-scale electronic manufacturers.
    C. A scheme to provide support for the creation of solar power plants.
    D. A scheme to provide support for the creation of telecom infrastructure.
    Correct Answer: A. A scheme to provide financial assistance for setting up both EMC projects and Common Facility Centres (CFCs) across the country.
    Explanation: The Modified Electronics Manufacturing Cluster (EMC 2.0) scheme was introduced in 2020 with the objective to create world-class infrastructure along with common testing facilities, including Ready Built Factory sheds/Plug & Play infrastructure for attracting Anchor unit along with their supply chain to set up their manufacturing/production facility in the country. It provides financial assistance for the setting up of both EMC projects and Common Facility Centres (CFCs) across the country.
  3. What is the aim of the Electronics Manufacturing Clusters (EMC) scheme?
    A. To make India a global player in the field of Electronics Manufacturing.
    B. To provide subsidies to small-scale electronic manufacturers.
    C. To provide support for the creation of solar power plants.
    D. To provide support for the creation of telecom infrastructure.
    Correct Answer: A. To make India a global player in the field of Electronics Manufacturing.
    Explanation: The aim of the Electronics Manufacturing Clusters (EMC) scheme is to make India a global player in the field of Electronics Manufacturing and to offset disabilities faced by industries for reliable infrastructure.
  4. What is the objective of the Modified Electronics Manufacturing Cluster (EMC 2.0) scheme?
    A. To create world-class infrastructure for attracting investments in the ESDM Sector
    B. To provide financial assistance for the setting up of EMC projects and CFCs
    C. To offset disabilities faced by industries for reliable infrastructure
    D. To create world-class infrastructure along with common testing facilities and Ready Built Factory sheds/plug & play infrastructure to attract anchor units and their supply chain
    Correct Answer: D. To create world-class infrastructure along with common testing facilities and Ready Built Factory sheds/plug & play infrastructure to attract anchor units and their supply chain.
    Explanation: The objective of the Modified Electronics Manufacturing Cluster (EMC 2.0) scheme is to create world-class infrastructure along with common testing facilities, including Ready Built Factory sheds/Plug & Play infrastructure for attracting Anchor unit along with their supply chain to set up their manufacturing/production facility in the country. Financial assistance is provided for the setting up of both EMC projects and Common Facility Centres (CFCs) across the country.

Boost up your confidence by appearing ourĀ Weekly Current Affairs Multiple Choice Questions

Loading