The investment of INR 3540 crore by Aequs SEZ private limited was cleared at the State High Level Clearance Committee (SHLCC) chaired by the Karnataka chief minister, B S Yediyurappa expecting 20,000 jobs approximately. The company is to setup consumer electronics and durables goods (CEDG) cluster in Hubballi, 430 kilometers from Bengaluru. This investment marks the India's first sector-specific investment complying with Prime Minister Narendra Modi-led Union government's Atmanirbhar or self- reliance initiative, the state government and Aequs said.

The company has request the Karnataka Industrial Area Development Board (KIADB) for allotment and acquisition of 400-acre land in Ittigatti Village in Dharwad, a senior government official said. The industrial unit will comprise warehouse facilities, logistics hub, skill development centre and other support services, as per the proposal. The idea of investment comes when the Karnataka government invites industries and other corporations to set up shop and help the cash-starved southern states to bring in fresh and the needed capital inflows to revive its finance. "CEDG will be globally competitive and a self-sustained ecosystem, generating employment, creating significant opportunities for the region, and nurturing the country's manufacturing potential. This campus will be spread across 400 acres with benefits of Special Economic Zone (SEZ) and Domestic Tariff Area (DTA)," said Aravind Melligeri, Chairman & chief executive officer of Aequs Inc. The CEDG expands the Aequs' footprint in Karnataka as it already operates a manufacturing SEZ in Belagavi and also the key stakeholder in developing the toys cluster in Koppal. The company is much interested in precision engineering, aerospace and allied industries in India, USA and France.

Revenue shortfalls due to reduction in goods and services tax (GST) compensation, financial impact due to covid-19 induced lockdown, heavy rain related damages and other factors has added to the distress in Karnataka’s economy.The SHLCC, held on 30 September, cleared investments six proposals worth INR15,045 crore that have the potential to create 21028 new jobs, according to officials. The government is making all necessary steps to ensure 100% cooperation with the companies to clear all necessary documents at the earliest; previously it took almost three years for a company to clear its documents.

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