Tata Technologies to invest Rs 2,000 Cr to set up engineering centers in Karnataka for MSMEs

Tata Group subsidiary Tata Technologies has come forward to set up three Common Engineering Facilities Centres (CEFCs) in the state to support MSMEs. The setting up of the three facilities will require an investment of Rs 2,000 crore, as stated by Karnataka’s Large and Medium Industries Minister M B Patil.

The representatives of Tata Technologies met the Minister at Vidhana Soudha in Karnataka and submitted the proposal in this regard, according to the Ministry’s release. 

“The company has intended to set up these centres to facilitate, particularly the MSMEs,” Patil said.

The proposal is to set up the centres through the Public-Private Partnership (PPP) model. Tata Technologies will have 70% stake and the rest 30% stake will be that of the state government, he added.

This is said to be the first such proposal for setting up such centres for MSMEs. Each centre is estimated to cost about Rs 630 crore.

The CEF centres will cater to Advanced Manufacturing 4.0, Electric Vehicle Testing and Aerospace & Defence, and vastly benefit the upcoming MSMEs and startups in these sectors, the Minister explained.

Welcoming the proposal, Patil said the government has decided to give preference to strengthening the MSME sector. He added that each CEF centre would require about five acres of land and a decision on providing it will be taken in the coming days.