Bhopal, May 5 (AHN) The Madhya Pradesh Cabinet on Tuesday cleared a major investment of Rs 1,295 crore to establish an Electronic (Semi-Conductor) Manufacturing Cluster near Bhopal, marking a significant stride in the state's industrial expansion, officials said.

The project is being developed jointly by the Central and state governments and is expected to become a hub for semiconductor-related activities and allied operations.

Spread across more than 200 acres, the cluster is envisioned as a comprehensive centre for electronics manufacturing, research, and innovation.

Officials noted that the initiative is part of a broader policy framework designed to strengthen India's position in the global semiconductor and electronics market, State MSME Minister Chetanya Kumar Kashyap said.

The sanctioned amount represents the planned expenditure over the next few years, beginning with the initial investment phase.

The cluster will provide infrastructure and facilities for companies engaged in semiconductor production, assembly, and testing, while also supporting ancillary industries.

By creating a dedicated ecosystem, the state government aims to attract both domestic and international investors, generate employment opportunities, and reduce dependence on imports in the electronics sector.

Authorities believe the project will not only boost industrial growth in Madhya Pradesh but also contribute to India's larger ambition of becoming self-reliant in advanced technology manufacturing.

With the electronics industry playing a crucial role in modern economies, the establishment of this cluster is expected to position Bhopal as a key centre for innovation and production.

The Cabinet's approval underscores the state's commitment to fostering high-tech industries and creating sustainable economic opportunities.

Over the next five years, the cluster is anticipated to evolve into a dynamic hub, driving technological advancement and industrial competitiveness.

This decision is being hailed as a forward-looking move that aligns with national priorities while opening new avenues for industrial development of the state.

By investing in cutting-edge infrastructure and focusing on semiconductor development, the state is laying the foundation for long-term growth and global relevance in the electronics sector.