Karnataka's first Rs 3.4K crore semiconductor project in Mysuru gets approval

The Karnataka government on Monday approved the state’s first semiconductor project in the electronics manufacturing cluster (EMC) at Kochanahalli, Mysuru, for Rs 3,425.60 crore, which is aimed at generating 460 jobs.

This was done at the latest meeting of the State High-Level Clearance Committee (SHLCC), during which the state government approved a total of nine industrial projects with a total investment of Rs 9,823.31 crore and expected to create approximately 5,605 jobs.

Other approved new projects include DN Solutions India Pvt Ltd’s Rs 998 crore investment at the ITIR, Devanahalli, expected to create 467 jobs and Sansera Engineering Ltd’s Rs 2,150 crore project at Harohalli, which is estimated to create 3,500 jobs. While these three projects are new proposals, the remaining six including JSW Cement, Musashi Auto Parts India involve expansions or amendments to existing plans.

During the meeting, Chief Minister Siddaramaiah urged investors who have acquired Karnataka Industrial Areas Development Board (KIADB) plots to operationalise their units. If this is not done within the prescribed timelines, penalties would be imposed, he cautioned.

“A new data centre has also been approved in the High-Tech, Defence and Aerospace Park in Bengaluru, to bolster the state’s digital and technology infrastructure,” state’s IT/BT Minister Priyank Kharge said in a post on X.

While the government has earmarked 234 acres of land in Mysuru for the EMC and semiconductor unit, Priyank Kharge has repeatedly expressed concerns, stating a lack of level playing field about attracting semiconductor firms.

“I am not saying semicon should not go to Assam or should not go to Gujarat. I’m merely asking, when I have one third of all the tech talent in the country in my state, why are we not deserving of it,” Kharge had said earlier in an interview with DH, alluding to alleged help by the Union governments to certain states.

Even Large and Medium Industries M B Patil had shared Kharge’s concerns stating that, “Many companies are investing in Gujarat because the Centre is offering 50% incentives in addition to 30% incentives from the state government, leaving companies to bear only 20% of the cost.”

The committee also explored the possibility of profit-sharing between sugar mills and farmers, which has remained a long and pressing issue over the years. “The state government is also looking at a policy to help farmers receive a fair share of the sugarcane as these mills continue to have several revenue models through bogus methods,” a source told DH.