CITY BUSINESS PLAN

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5 CENTRAL AND STATE GOVERNMENT PROGRAMMES 5.1 Introduction Several programmes and schemes of the Central and State Government ministries, departments and institutions may be twinned with the CBP of Muzaffarpur. Some of these programmes and schemes such as the PMEGP and the SJSRY are relevant for start ups, while others like the PPP based cluster development schemes are of relevance to existing industrial and commercial stakeholders. As matter of fact, but for programmes and schemes related to food processing and horticulture, most others are generic and cut across/transcend value-chains. While some programmes and schemes of the Central and State Government such as those providing assistance for conduct of EDPs have been arranged by the IED, Patna and a few NGOs in Muzaffarpur, by and large most Central Government options remain untapped. Evidently, in the past institutions have leveraged and conducted a few EDPs sponsored by the Ministry of Food Processing Industries (MOFPI) (a Central Government scheme) and Shram Vikas Yojna/Mukhya Mantri Vikas Yojna (a State Government Scheme) across Bihar. Financial grants of between Rs. 1.4 lakh to Rs 2 lakh is provided for each EDP under such programmes. Typically, however, the low budget MSME- DI led EDPs and ESDPs with outlay of between Rs. 30,000-80,000 alone are provided to potential start-ups in the region. 5.2 PPP Cluster Development Scheme of the Central Government The cluster development schemes pursued by different Central Government bodies have been in progress for several years. However, the benefit of these schemes has completely by-passed North- Bihar. As a matter of fact, the State Government is yet to evolve a comprehensive PPP based cluster development policy. Since 2000, many Central Government ministries have launched cluster development initiatives under taken in a PPP mode. The nature of such programmes and their scope is presented in the tabulation following. Evidently, while interventions under some programmes are more “broad-based” in terms of their emphasis on (“soft intervention”) improvements in different operational areas related to cluster enterprises such as technology, finance and marketing skills, today resource outlays are skewed towards common infrastructure and technology upgrading. Evidently, much of such initiatives are oriented towards common facilities and infrastructure development on a public-private partnership mode. Final Report 5-1
City Business Plan for Muzaffarpur Municipal Corporation Table 5.1:Progress of some relevant Central Government programmes and schemes in India Programme/Scheme Scope of the programme/scheme Ministry of MSME Micro and Small The scheme is broad based but with over 97 per cent of resource outlay on common facilities for upgrading technology and productivity. A scheme for infrastructure upgrading, namely the Industrial Infrastructure Development (IID) scheme has been merged with the MSECDP.A total outlay of about Rs 135 million by way of grant is available per cluster for common facilities and Rs. 60 million for infrastructure related interventions. The limit for soft interventions is Rs. 25-30 million per Enterprises Cluster cluster. Usually, each cluster where MSMEDIs are directly intervening, Development has a (Cluster Development Executive) CDE whose costs are borne by Programme (MSECDP) the MSMEDIs or by concerned local institutions. The total budgetary outlay by the DCMSME for common facilities alone is about Rs. 5000 million, and till date, interventions (including diagnostic studies) have been pursued in over 400 clusters. While a few programmes were initiated as early as 1998, most were launched since 2002-3.The cluster of litchi in Muzaffarpur is being supported under this scheme. However, progress of interventions merits technical assistance. The scheme is broad-based with a percentage of about 25 per cent outlay being oriented towards common facilities. A total outlay of Rs. 10 million per cluster amounting to Rs. 1000 million for 100 clusters is provided for. Interventions are led by a trained Cluster Development Scheme Fund for Agent (CDA) representing concerned implementing agencies who are Regeneration of largely NGOs and functionaries of government departments. Under the Traditional Industries scheme the Ministry of MSME through nodal agencies such as the Coir (SFURTI) Board and Khadi and Village Industries Commission (KVIC) provide financial assistance for implementation. Interventions are on since 2006- 7 in about 100 clusters. The scheme is expected to continue into the most 5 year plan. Ministry of Food Processing Industries Focus on evolution of specialised and basic industrial infrastructure. Scheme for Mega Food There is a budgetary ceiling by way of grant assistance per cluster of Rs. Parks (SIMFP) 400 million. Interventions are on across the country. Ministry of Textiles Final Report 5-2
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9 REHABILITATION OF STREET VENDORS
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10 STAKEHOLDER CONSULTATIONS 10.1 I
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11 PUBLIC-PRIVATE PARTNERSHIP 11.1
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12 CBP IMPLEMENTATION PROCESS 12.1
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