Telangana IT Minister K.T. Rama Rao on Friday said the State government was keen on ensuring the development of the electronic hardware manufacturing sector.
Declaring that IT is also about hardware, he said the growth, unlike software sectors, should be broad-based. “It should spread to all corners of Hyderabad... not just Gachibowli and Kondapur,” he said.
Mr. Rao, interacting with presspersons at the inauguration of mobile phone-maker Celkon’s plant in Medchal, said an eco-system would be created to attract fab manufacturers.
“This is just the beginning,” he said, referring to Celkon’s facility, adding that the government was in talks with mobile makers and Indian Cellular Association. Micromax has already decided to set up a unit.
Chief Minister K. Chandrasekhar Rao was keen on a mobile manufacturing hub, the IT Minister said, pointing out that hardware units generated more jobs, particularly low-end, to accommodate youths with lesser qualification and those marginalised.
Unlike previous regimes (of erstwhile A.P.), the government’s approach on attracting fab plants is the “other way round”, by facilitating several end user units first.
Setting up of hardware clusters in Maheswaram, Medchal and Ghatkesar, around Hyderabad, was a measure.
The focus was on analog wafer fabrication manufacturers and discussions were held with Cricket Semiconductor of the U.S. (Earlier this year, the firm had announced plans for an analog fab unit with $1 billion investment in Madhya Pradesh).
Mr. Rao said he would soon visit South Korea and Japan to promote Telangana as an ideal destination.
Highlighting the industry-friendly initiatives, he said: “We will go all out [supporting] with land, power, water, tax incentives… train prospective candidates at our cost. What happened [for] software will be done for hardware.”
IT Secretary Jayesh Ranjan said Micromax was likely to get necessary approvals for its 50-acre facility at Ravirala in the first week of July.
Reasons for mobile makers evincing interest in setting up a plant in India were primarily because of rising wages in China; countries imposing barriers against imports from China; and having a presence near huge consumer base.
On the Maheshwaram cluster, he said it was coming up on 1,000 acres and several units from Kushaiguda were likely to shift there.
