Industry celebrates the Launch of ELCINA Electronics Manufacturing Cluster at Bhiwadi

Located just 71 km from IGI Airport in Delhi, is the ELCINA Electronics Manufacturing Cluster in Bhiwadi which is the first Cluster as a cooperative project. Industry gathered today in very large numbers to celebrate the launch of the ELCINA Cluster along with RIICO officials and local leadership.

Recently Ravi Shankar Prasad, Electronics and IT Minister, Government of India highlighted the all time high FDI in electronic manufacturing of Rs 1.23 lakh crore in 2016 making it a key industry sector. As per industry research demand for electronics hardware in India is already approaching US$ 140 Bn and is projected to grow to $400 billion by 2022. To develop electronics manufacturing in India, the government is supporting electronics manufacturing clusters in different parts of the country under the EMC Scheme by providing financial incentives for infrastructure development.

“A few years back, the government set up a task force to make India a global player in the field of Electronics Manufacturing. ELCINA was a key participant and we gave our recommendations that were implemented. This led to the idea of creating Electronics Manufacturing Clusters (EMC) scheme with an aim to provide support for creation of world-class infrastructure for attracting investments in the Electronics Systems Design and Manufacturing (ESDM) Sector,” said BS Sethia, Director, Elin Electronics Ltd., and Chairman of ELCINA Bhiwadi Cluster SPV.

Taking the lead is one of the country’s oldest association, Electronic Industries Association of India (ELCINA) and the first industry association supporting electronics hardware since 1967. Finding potential in this Scheme, the ELCINA Cluster in Bhiwadi was conceived by the association members with a view to overcome cost disabilities and provide an eco-system which would enable manufacturers in India to compete with global suppliers.

ELCINA created a SPV (Special Purpose Vehicle) - ELCINA Electronics Manufacturing Cluster Pvt Ltd ; a company formed solely with a purpose to Develop and Maintain the infrastructure in the Cluster as per guidelines laid by Ministry of Electronics & IT, Government of India under Electronics Manufacturing Cluster Scheme.

Spread across 100 acres is the ELCINA Electronics Manufacturing Cluster – the project is to be implemented in 2 phases of 50 acres each in Bhiwadi, Rajasthan. The proposed Dedicated Freight Corridor (DFC) runs alongside the Cluster plot. Central Govt. Incentives (M-SIPS) include Capital subsidy upto 25% of capital expenditure of the project. In addition, there is provision for refund of Indirect Taxes paid on Capital Equipment.

“A dedicated power supply feeder and distribution system will be installed through our own Grid Sub-Station. We will also have our own water distribution and sewage system. But the best part will be the creation of a hostel for workers. This I had noticed while I was having a unit in China. This will be very beneficial for all the companies in the cluster as the workers will not have to stay in slum like areas and also commute long distances,” said Vinod Sharma, Managing Director, Deki Electronics Limited and Director of ELCINA Bhiwadi Cluster SPV. The Workers’ Hostel complex shall have residential facilities for workers for the capacity of 400 maximum for phase I of 50 acres. The Centre of Excellence which will include - R&D and Incubation facility, Training Centre, Conference/Seminar Facility, Video Conferencing Room, Auditorium, etc.

The Cluster would create direct employment opportunity of 5-6,000 and the indirect employment potential is 10-12,000. Constituent Units/SPV Members - 19 Companies have already invested in the Cluster(List as Annexure). The 2nd Phase would provide a similar additional opportunity.

“Apart from Indian companies we are also tapping the International clientele. We have got an excellent response from Taiwan. ELCINA can do the complete hand holding for these companies including helping them with partnership options. There is already keen interest amongst potential investors for the 2nd Phase of the project and there is scope for ELCINA to launch the 2nd phase soon. Supported by Ministry of Electronics & IT, Govt. of India & RIICO, Govt of Rajasthan, international companies can look at it as a safe investment,” said Rajoo Goel, Secretary General, ELCINA.

The Grant-in-Aid for Phase-1 of Rs.20.24 Crore from MeitY under the EMC Scheme would be used to develop the basic infrastructure and common facilities mentioned above. There is provision for expanding the Manufacturing Support Services in Phase II of the project which includes Tool Room, CAD/CAM Design House, Testing facility, Plastic Molding and Sheet Metal Stamping facility.

The notable ESDM products proposed to be manufactured in the Cluster are Electronic Components, Consumer Appliances, EMS Services, Mobile Phone Accessories, UPS & Stabilizers, Solar Products, electromechanical components and more.
“The Bhiwadi Cluster has an important role to play in Government of India’s “Make in India” and “Digital India” initiatives. We hope it would be the 1st to start functioning amongst 200 Clusters planned across the country,” said BS Sethia.