Nidec, a prominent player in the manufacturing of data centre equipment globally, opened a new facility with an investment of Rs 600 crore at the Dharwad-Beluru Industrial Area.

The inauguration was conducted by M B Patil, Karnataka's Minister for Large and Medium Industries.

"The new plant, which creates 800 direct jobs, will cater to the growing demand across sectors such as electric vehicles, data centres, renewable energy, battery storage, and general industries. This unit will bolster local manufacturing, enhance R&D capabilities, and improve supply chain reliability," Patil says.

This facility will produce heavy-duty machines with capacities of 2 MW, 3 MW, and 4 MW, which are vital for data centres, utilizing cutting-edge technology from Japan and France.

"While the facility has initially generated 800 direct jobs, the number is expected to rise to around 3,000 once the plant becomes fully operational," Patil stated.

These machines are intended for export to markets in the United States, the UAE, and Europe, in addition to catering to the local market, as indicated by the company.

He also mentioned the allocation of 20 acres for the company's battery solutions division.

Patil emphasized the government's commitment to promoting industrial development in North Karnataka, stating that the state has launched various incentives and facilities through its new industrial policy. "For Nidec's initiative, we ensured prompt coordination by securing the necessary land within a mere two years," he noted.

In response to concerns regarding water consumption, the minister explained, "The Krishna River Water Tribunal has assigned 4 TMC of water for industrial activities, of which only 0.5 TMC is currently being utilized. We are not diverting water intended for agriculture. Additionally, industries receive only downstream water from the Hidkal Dam."

He further highlighted the necessity of finding a balance between industrial advancement and agricultural needs.

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"While acquiring land for industrial purposes, fair compensation must be ensured for farmers. A healthy balance between agriculture and industry is vital," Patil added.