EMC 2.0 Scheme to Create 1.8 Lakh Jobs with Rs 1.46 L Cr

• EMC 2.0 approvals attract Rs 1.46L cr investments
• Projected to create 1.80 lakh jobs across 10 states
• 11 clusters, 2 CFCs with plug-and-play facilities

India's​‍​‌‍​‍‌​‍​‌‍​‍‌ updated Electronics Manufacturing Clusters (EMC 2.0) scheme is a game-changer for the country's electronics sector. By creating world-class infrastructure and "plug-and-play" facilities, the scheme aims to promote development in dedicated clusters.

The initiative, launched by the Ministry of Electronics and IT in April 2020, has so far approved 11 electronics manufacturing clusters and two common facility centres covering almost 4,400 acres in 10 states with a total project cost of Rs 5,226 crore and central financial assistance of Rs 2,493 crore.

The district administrations will be able to leverage over Rs 1.46 lakh crore in investments as a result of these projects, out of which Rs 1.13 lakh crore has already been committed by 123 manufacturers, besides generating 1.80 lakh direct and indirect jobs approximately.

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Until today, the seven units that are operational have invested Rs 12,570 crore and provide work to 13,680 people. Some of the prominent features are shared infrastructure like industrial plots and ready-built factory sheds- at least 10% of cluster space should be allocated for plug-and-play setups to facilitate rapid company onboarding, reduced logistics costs, and strengthened supply chains.

The National Institute for Micro, Small and Medium Enterprises commissioned a study to find out the benefits of the programme, among which they identified faster infrastructure growth, better responsiveness, development of skills, and greater employment opportunities throughout the ecosystem. The policy is a step towards India's ambition to be one of the leading global electronics hubs, having longer value chains, and being self-sufficient while the demand for both domestic and export products is ​‍​‌‍​‍‌​‍​‌‍​‍‌increasing.