West Bengal charging electronics production

The West Bengal government is exploring ways to expand electronics manufacturing in the state by leveraging the Centre’s modified electronics manufacturing clusters (EMC 2.0) scheme, said people familiar with the development.

The clusters in Naihati and Falta, set up under the first iteration of the Union electronics and IT ministry’s scheme, are being assessed for the expansion, according to the people.

New Policies Likely

While the new BJP regime has begun identifying land parcels in the state for greenfield investments, establishing a land bank is a more time-consuming process, they said. “Instead, the state is keen to get the Centre's help in securing funds and anchor investments at the existing locations. Measuring about 70 acres and 58 acres, respectively, Naihati and Falta have enough spare capacity and are located about two hours from Kolkata,” said one of the persons, who did not wish to be identified.

The move comes at a time when the Centre is nudging major domestic and foreign electronics and technology companies to explore potential investments in West Bengal, including in data centres, semiconductor projects and information technology-enabled services. Investment talks are expected to gather pace as the state drafts new policies for data centres and land acquisition.

Launched in 2020, EMC 2.0 covers 50% of the project cost, with a cap of Rs 70 crore per 100 acres, to create plug-and-play infrastructure, ready-built factory sheds and an “anchor unit” commitment. The scheme had 123 land allottees in 13 projects across 10 states, as of December 2025.

Since the application window for the current scheme ended in March 2024, the West Bengal government has sought directions on whether existing facilities can be covered, the people said. According to scheme provisions, the special purpose vehicle or state implementing agency of an older EMC 1.0 site can apply for additional central funding to upgrade infrastructure, build common facility centres or construct ready-built factories on adjacent or underutilised plots.

Strict Conditions

However, the state may have to meet strict conditions if it gets the go-ahead, according to the people. Under the rules, at least 100 acres adjoining existing EMCs will be considered for meeting the minimum land requirement. In addition, 80% of saleable or leasable land in the existing EMC should have been allotted to the manufacturing units, and at least 50% of units which have been allotted land should have started production.

The state is also looking to reduce the average time taken to process applications for setting up units within the two EMCs. The median time taken to process just three applications is 235 days, as per state government data, despite the West Bengal Right to Public Services Act, 2013, stipulating a maximum time limit of 50 days.

Nodal agency West Bengal Electronics Industry Development Corporation had set up a smaller hardware park in Sonarpur. While plots are yet to be allocated, the 10.72-acre facility can't be classified under the EMC scheme. Under the EMC 2.0 rules, the minimum area required for a viable cluster in states, apart from those in the Northeast, is 25 acres.