The Software Technology Parks of India (STPI) plans to set up an ESDM (Electronic System Design & Manufacturing) incubation centre for the start-ups in Bhubaneswar with an investment of about Rs 22 crore over a year period of five years.
STPI has submitted a detailed project report (DPR) for the proposed incubation centre to the state government for approval.
"The sharing of funding will be equal between the state government and the Centre. STPI is nodal agency for implementation of the project," said an official.
About 40 start ups in ESDM will be benefitted over a period of five years. The incubation centre aims at achieving the objectives of the ESDM vision outlined in the National Policy on Electronics and other policies.
The funds will be apportioned for providing infrastructure facilities, testing labs and funding to the ESDM start-ups for creating a complete ecosystem in the state.
Equity in the incubatee companies, as per the prevailing norms, will be kept for mentors, operating team and ESDM incubation centre stakeholders, official said.
Selected start-ups coming up at incubation centre will be given 18 months time to become commercially viable. The requisite marketing, maintenance and funding supports will be provided to them.
Start-ups under four verticals- energy, health, education and industrial automation and process control will be allowed to operate at the proposed centre.
However, other innovative proposals can also be considered, said the official.
The state government has taken host of measures - preparation of road map for the hardware industry, characterisation lab for chip testing etc, to attract investments in the ESDM sector.
The ESDM sector, as per a strategic roadmap, is poised to generate cumulative revenue of Rs 18,800 crore in Odisha by 2024. The report said, investments of Rs 7,340 crore need to be pumped into the sector in three phases to realise the projected revenue and employment generation for around 60,000 people.
Khurda, Rayagada, Sundergarh, Balasore and Ganjam districts are identified as the potential areas for setting up of ESDM projects. In addition, the Information and Communication Technology policy-2014, promises sops for the promotion of ESDM units.
As per the estimates, the demand for electronics in India was $45 billion in 2008-09 and is expected to touch $400 billion by 2020.
The National Policy on Electronics has set a target to attract investment of around $100 billion and create around 28 million jobs by 2020.
