Odisha electronics cluster may bag Rs 200 cr investment

Companies who are investing include Apex Circuits Pvt Ltd and Ortel Communications

The Odisha government is close to clinching investments worth Rs 200 crore for its electronics manufacturing cluster (EMC) planned on 203 acres of land at the Infovalley, a dedicated IT park proposed on the city's outskirts.

Officials said, domestic companies have committed investment of about Rs 200 crore. The companies include Apex Circuits Pvt Ltd and Ortel Communications.

Sources said, Apex Circuits has evinced interest to set up PCB (printed circuit board) with an investment of more than Rs 100 crore and has sought about four acres of land from the government.

"Domestic companies have committed Rs 200 crore investment for the EMC. These proposals are in advanced stage and we are looking to seal the deal shortly", said state IT minister Pranab Prakash Das.

The department of electronics and information technology (DeitY), under the Union ministry of communication and information technology, in July last year, has awarded in-principle approval for the project.

The proposed greenfield EMC cluster, located at Harapur, Gaudakasipur and Durgapur villages of Khurda district in Odisha, is expected to house over 100 electronics manufacturing units with an employment potential of 10,000-12,000 jobs, which will be a mix of skilled and semi-skilled personnel.

The state government has already submitted the detailed project report (DPR) for final approval. A sum of Rs 95 crore is sought from Government India and the total project cost is pegged at about Rs 205 crore.

Under the scheme, the assistance will be provided to a special purpose vehicle (SPV), which will be a legal entity duly registered for this purpose.

The SPV may be promoted by private companies, industry associations, financial institutions, research & development institutions, state or local governments or their agencies and units within the EMC.

A SPV in the name and style of 'Odisha Electronics and IT Parks Ltd' has been formed for developing the project.

As per India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry, the aggregate investment in the cluster is projected at Rs 979 crore, which includes investment by individual units in plant, machinery and park infrastructure.