Karnataka Chief Minister Siddaramaiah on Monday, December 23, approved a proposal by Zoho-backed Silectric Semiconductor Manufacturing Pvt Ltd to invest ₹3,425.6 crore in the state’s first electronics manufacturing cluster near Mysuru.
This project, which is expected to create 460 jobs, marks a significant milestone for Karnataka in the semiconductor and electronics manufacturing sector, the CM said.
The investment was approved during the 64th State High-Level Clearance Committee (SHLCC) meeting chaired by Siddaramaiah. The meeting approved a total of 10 proposals worth ₹9,823 crore across various industrial sectors, which are projected to generate 5,605 jobs in the state.
The state government has 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 introduce a new Electronics System Design and Manufacturing (ESDM) policy to further boost growth in the sector.
In addition to the Kochanahalli cluster, the government has identified 901 acres of land across four industrial clusters to support the semiconductor industry. These include 224.5 acres 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.
Despite these efforts, state ministers have raised concerns about the challenges in attracting semiconductor firms to Karnataka. Priyank Kharge, Karnataka’s IT and Biotechnology Minister, pointed out that while the state has mobilised ₹70,000 crore in investments in the semiconductor sector, “favouritism from the Union government towards Gujarat” has made it difficult to secure more projects. He alluded to the fact that one phone call from New Delhi could redirect investments to Gujarat, the home state of Prime Minister Narendra Modi.
State Minister for Large and Medium Industries MB Patil echoed similar concerns, noting that the Union government offers 50% incentives in Gujarat, in addition to 30% state incentives, leaving companies to bear only 20% of the cost. Patil said that if Karnataka were provided with similar incentives, it could attract more semiconductor investments. He has raised this issue with the Union Minister of Heavy Industries, HD Kumaraswamy, in an effort to secure better support for Karnataka’s semiconductor ambitions.
Of the ₹9,823 crore approved during the SHLCC meeting, three new investments totalling ₹6,573.6 crore are expected to create 4,427 jobs. These include DN Solutions India Private Limited with a ₹998 crore investment creating 467 jobs at ITIR, Devanahalli; Silectric Semiconductor Manufacturing Pvt Ltd with a ₹3,425.6 crore investment creating 460 jobs in Mysuru; and Sansera Engineering Limited with a ₹2,150 crore investment creating 3,500 jobs at Harohalli. Additionally, six existing investment proposals worth ₹3,249.7 crore were approved, which are expected to generate 1,178 jobs.
The CM also called for a review of companies that acquire land from the Karnataka Industrial Areas Development Board (KIADB) but fail to begin operations within the stipulated period. He warned of imposing fines on such companies where necessary and stressed the importance of industries adhering to government regulations.
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