G. Anand

Thiruvananthapuram, May. 3: The Kerala State Industrial Development Corporation (KSIDC) will set up an electronic components manufacturing hub in 250 acres of land in Ernakulam District. The manufacturing centre is expected to provide employment to at least 20,000 people. The project will be completed by 2010.

A KSIDC official said that land for the project has been identified and the State Government will acquire it at a cost of Rs 500 crores. The electronic hub will host original equipment manufacturers, makers of electronic components, electronic research, design and development companies, manufacturers of semi-conductors and electronic goods fabrication units. The proposed hub will also have "non processing" areas for setting up hotels, residential complexes and commercial centres.

The State Government hopes to attract foreign investment for developing the proposed hub. The proximity to the Kochi port and provision for uninterrupted and high quality power would prompt a considerable number of big electronic equipment manufacturers to set up shop in the complex, according to Government officials.

There is a huge and growing demand for electronic equipment in India and many global players are eyeing its large market for electronic items. In 2005, India had imported electronic materials, components and finished products amounting to over twelve billion US dollars. However, electronic manufacturing in India is just 0.7 per cent of the global electronic industry.