Tata Electronics is going to set up a mobile component manufacturing unit in Krishnagiri. The Tata Group firm has signed a memorandum of understanding (MoU) with the Tamil Nadu government as per which it will invest Rs 4684 crore in the new plant, employing more than 18000 people.
This was one of the 28 MoUs the state government has signed with various companies for Rs 28,053 crore that would provide employment to 68,775 people in the state. Tata Sons Chairman Natarajan Chandrasekaran said, “This is a very large project in precision engineering and manufacturing and would create capabilities for the country.” It would generate significant employment mainly for women and also train them for skillsets in new technical areas.
The company’s entry into production of mobile components comes at a time when the Centre is emphasizing local production of electronic items and has also rolled out a production linked incentive scheme. According to some reports, Tata Electronics has been allotted 500 acre by TIDCO (Tamil Nadu Industrial Development Corporation).
The state government has recently unveiled the Tamil Nadu Electronics Hardware Manufacturing Policy, 2020, and has set an ambitious target to increase electronics industry output to $100 billion by 2025.