West Bengal Eyes EMC 2.0 to Boost Electronics Manufacturing

The West Bengal government is exploring ways to expand its electronics manufacturing footprint by leveraging the Centre’s EMC 2.0 scheme, which provides financial support for infrastructure development in electronics clusters, reported Economic Times citing that officials have indicated that the state will prioritize upgrading existing clusters at Naihati (70 acres) and Falta (58 acres) rather than waiting for new land banks to be developed.

The Modified Electronics Manufacturing Clusters (EMC 2.0) scheme, launched in April 2020 by India’s Ministry of Electronics and IT, provides financial support to create world‑class infrastructure for electronics manufacturing, including plug‑and‑play factory sheds and common facility centres, with funding available until March 2028.

Existing Cluster Expansion

• Naihati cluster (North 24 Parganas) and Falta cluster (South 24 Parganas) were established under EMC 1.0.
• Both clusters are strategically located near Kolkata, offering proximity to ports and logistics hubs.
• The state government is seeking Centre’s financial assistance to modernize these clusters with plug‑and‑play factory sheds, common testing facilities, and logistics support.

EMC 2.0 Scheme Highlights

• Launched in 2020, valid till March 2028.
• Provides 50% project cost support, capped at ₹70 crore per 100 acres, with a maximum of ₹350 crore per project.
• Offers 75% support for Common Facility Centres (CFCs), capped at ₹75 crore.
• Eligible applicants include state governments, PSUs, industrial development corporations, and joint ventures with anchor units.

Scheme Feature	Details
Duration	8 years (till March 2028)
Funding	50% of project cost (₹70 crore per 100 acres cap)
CFC Support	75% of project cost, capped at ₹75 crore
Objective	Infrastructure for electronics manufacturing clusters
Anchor Requirement	At least one major investor to drive ecosystem

State’s Strategic Focus

• Policy shift: Fast‑track expansion by upgrading existing clusters instead of waiting for new land acquisition.
• Anchor investments: Talks with potential investors in semiconductors, data centres, and IT‑enabled services.
• Policy alignment: Drafting new policies for data centres and land acquisition to complement EMC 2.0.

National Context

• India is pushing to become a global hub for electronics manufacturing, with Tamil Nadu, Karnataka, and Uttar Pradesh attracting major investments.
• West Bengal’s move to leverage EMC 2.0 could position it as a regional competitor, especially given its port connectivity and skilled workforce.

Implications

• Faster rollout: Upgrading existing clusters avoids delays in land acquisition.
• Investment magnet: Ready‑built infrastructure could attract global electronics firms.
• Regional competitiveness: Positions West Bengal alongside leading states in India’s electronics push.