Silectric Semiconductor Manufacturing Pvt Ltd, formed by directors of Zoho, will invest Rs 3,425.60 crore in Karnataka’s first electronics manufacturing cluster at Kochanahalli in Mysuru which will create 460 jobs.
The 64th State High-Level Clearance Committee (SHLCC) chaired by Chief Minister Siddaramaiah, where nine proposals worth a total of Rs 9,823 crore were approved across various industrial sectors in the state, which are expected to generate Rs 5,605 jobs. “The first semiconductor project in the electronics manufacturing cluster at Kochanahalli, Mysuru, is a major milestone for the state” said Siddaramaiah.
The state government had earmarked 234 acres of land at Kochanahalli, near Kadakola in Mysuru, for the electronics manufacturing cluster (EMC) and semiconductor units. Karnataka is also planning to roll out a new Electronics System Design and Manufacturing (ESDM) policy.
Also, read: Union govt should not dictate to semiconductor companies on where to invest: Karnataka minister MB Patil
The state has identified 901 acres of land across four industrial clusters for the semiconductor sector. "A 224.5-acre cluster in Hubballi near Belur-Kotur, 245.67 acres in Kochanahalli in Mysuru, 218.20 acres in Vasanthanarasapura Industrial Area in Tumakuru, and 213.14 acres in Hosahalli in Bengaluru Rural have been identified," Karnataka’s Information Technology and Biotechnology Minister Priyank Kharge had earlier said.
However, Kharge expressed concerns about attracting semiconductor firms. "We managed to mobilise investments worth Rs 70,000 crore in the sector after visiting multiple countries, but one phone call from New Delhi would force them to invest in Gujarat," he said, alluding to favoritism from the Centre. Gujarat is the home state of Prime Minister Narendra Modi.
State Minister for Large and Medium Industries MB Patil had also echoed Kharge's concerns. "Many companies are investing in Gujarat because the Union government is offering 50% incentives in addition to 30% incentives from the state government, leaving companies to bear only 20% of the cost," Patil had said.
Also, read: Karnataka to spend Rs 714.49 crore to develop 4 clusters to attract chip makers
"If similar incentives were provided to Karnataka, it would help the state attract investments in the semiconductor industry. I have also brought this issue to the attention of the Union Minister of Heavy Industries, HD Kumaraswamy," Patil added.
Of the Rs 9,823 crore in investments approved the State High-Level Clearance Committee meeting, includes three new investments worth Rs 6,573.6 crore, which could create 4,427 jobs: DN Solutions India Private Limited (Rs 998 crore investment, 467 jobs) at ITIR, Devanahalli, Silectric Semiconductor Manufacturing Private Limited (Rs 3,425.6 crore investment, 460 jobs) in Mysuru, and Sansera Engineering Limited (Rs 2,150 crore investment, 3,500 jobs) at Harohalli. Additionally, there are six existing investment proposals worth Rs 3,249.7 crore, which are expected to generate 1,178 jobs.
Other decisions
Meanwhile, review was called for concerning companies that acquire land from the Karnataka Industrial Areas Development Board (KIADB) but fail to start operations within the stipulated period. “Fines will be imposed on such companies where necessary” he said. The CM stressed on the importance of industries adhering to government regulations.
He also directed sugar factories to address the issue of providing farmers with a share of profits from by-products, suggesting that Karnataka examine the practices followed in Maharashtra and Tamil Nadu in this regard.
Also, read: Priyank Kharge pitches GIFT City in Karnataka, urges Union govt to fast-track approvals
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