Nidec, a multinational manufacturer specializing in equipment for data centres, has opened a new production facility in the Dharwad-Beluru Industrial Area near Hubballi. The project involves an investment of ₹600 crore, according to state officials.
The plant was formally inaugurated by Karnataka’s Minister for Large and Medium Industries, MB Patil. According to Mr Patil, the new unit will directly employ 800 people in its initial phase and will support sectors such as electric vehicles, data centres, renewable energy, battery storage, and general manufacturing. “This plant will contribute to local production, strengthen research and development, and improve supply chain stability,” Mr Patil said in an official statement.
The facility will produce high-capacity machinery—ranging from 2 MW to 4 MW—for use in data centres. The equipment will incorporate advanced technology developed in Japan and France. These products will serve both domestic needs and be exported to the United States, Europe, and the UAE.
The workforce is expected to grow to around 3,000 as the plant scales up operations. The state has also allocated 20 acres of land for Nidec’s battery solutions division. In addition to large machinery, the plant will manufacture power backup systems, wind generators, alternators for data centres, electric vehicle motors (for three- and four-wheelers, as well as trucks), elevator motors, and both medium- and low-voltage electronic drives.
Mr Patil highlighted the government’s efforts to promote industrial development in North Karnataka through incentives and support under its new industrial policy. He noted that land for Nidec’s project was allocated within two years to ensure timely setup.
Responding to concerns about water use, Mr Patil said that industrial projects draw from the 4 TMC of water allocated under the Krishna River Water Tribunal ruling. “Currently, only 0.5 TMC is being used for industrial purposes, and the water is sourced downstream from the Hidkal Dam,” he clarified, adding that there is no diversion of water meant for agriculture.
Mr Patil concluded by underlining the need to strike a balance between industrial expansion and agricultural interests. “Fair compensation must be provided when acquiring land, and both sectors must grow in a sustainable manner,” he said.
