Zoho-Backed Silectric to Invest ₹3,426 Crore in Karnataka

On Monday, December 23, Karnataka Chief Minister Siddaramaiah gave a nod to the proposal from Zoho-backed Silectric Semiconductor Manufacturing Pvt Ltd to make an investment of ₹3,425.6 crores (or ₹34.3 billion) at the first electronics manufacturing cluster of the State near Mysuru. With this project, which is expected to generate around 460 jobs, Karnataka is taking a big leap in the semiconductor and electronics manufacturing sectors.

Zoho-Backed Silectric to Invest ₹3,426 Crore in Karnataka’s First Electronics Manufacturing Hub

The approval for investment was given at the 64th State High-Level Clearance Committee (SHLCC) meeting chaired by Siddaramaiah. The meeting also okayed 10 more proposals worth ₹9,823 crore across multiple sectors, which will create 5,605 jobs.

The state has earmarked 234 acres of land in Kochanahalli, adjacent to Kadakola, Mysuru, for the electronics manufacturing cluster and semiconductor units. Karnataka intends to introduce a new Electronics System Design and Manufacturing (ESDM) policy to enhance a sector that already plays a key role in the local economy. Also, 901 acres of land in four other industrial clusters are reserved to promote the growth of the semiconductor industry. These have some land in Hubballi, Kochanahalli, Vasanthanarasapura in Tumakuru, and Hosahalli in Bengaluru Rural.

But state ministers have expressed challenges in enticing semiconductor companies to Karnataka. Priyank Kharge, Karnataka’s IT and Biotechnology Minister, noted that despite securing ₹70,000 crore in investments for the semiconductor sector, “favoritism towards Gujarat” by the Union government has made it harder to win projects. He said that a call from New Delhi could direct investments toward Gujarat, the home state of Prime Minister Modi.

MB Patil, the Minister for Large and Medium Industries, noted similar fears and reiterated that Gujarat provides an incentive of 50% of the Union Government and 30% of the state, meaning Karnataka is also left to the wolves in this regard. He has forwarded the message to the Union Minister of Heavy Industries, HD Kumaraswamy, and expressed a hope that the government will support Karnataka better in the slot for semiconductors.

The SHLCC meeting approved ₹9,823 crore in total investments, with three new projects contributing ₹6,573.6 crore. This includes ₹998 crores by DN Solutions India in Devanahalli, Silectric ₹3,425.6 in Mysuru, and ₹2,150 crores from Sansera Engineering in Harohalli. Additionally, six existing projects with a value of ₹3,249.7 crores have been approved, which may provide 1,178 new jobs. The CM also directed a review of companies that acquire land from the Karnataka Industrial Areas Development Board (KIADB) but fail to begin operations on time. He warned that fines could be imposed on such companies, stressing the importance of adhering to government regulations.

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