Evaluation Study MSE Cluster Development - Ministry of Micro ...

Chapter No: 5– The Special Purpose Vehcilecomprehensively reviewed and revised before the implementation of the programmeduring the 11th Five Year Plan.5.7 Suggested Methods of Removing Constraints faced by SPVsHowever while obtaining the responses of SPV functionaries on the constraining factorsaffecting the formation and effective functioning of SPVs, we also obtained theirresponses on measures to handle these constraints and challenges. Various usefulmeasures were suggested by the SPV functionaries that they considered to be importantand which they initiated in order to overcome constraints. These are classified in twobroad groups, the first consisting of Trust Building Initiatives/Measures required to beundertaken by the SPVs themselves, and the second consisting of FacilitativeInitiatives/Measures that are required to be taken up by the Government and PublicAgencies.There are 11 specific initiatives or measures on which the responses of the SPVs werecanvassed, while we have received a very high level of affirmative responses in the caseof each of the eleven measures highlighted it is clearly evident from Table 5.4, theaffirmative responses on seven of these 11 issues are relatively higher. The highestaffirmative response is seen for three trust building measures. The first is the cleararticulation of the concrete benefits and advantages of working together. The second isthe clear articulation of the concrete benefits of the CFC and its viability. The thirdmeasure is the obtaining of clarification on guidelines and procedures and effectivelydisseminating them among cluster actors to clear doubts and ambiguities that give riseto skepticism. It may be mentioned here that the other measures listed in some detail inthis self-explanatory table 5.4 are equally important and there is considerable unanimityin the need for, and effectiveness of these measures among most SPVs covered by us.The table also highlights the measures actually undertaken by the responding SPVs.Here it can be observed that at the level of actually implementing or undertaking theseinitiatives most SPVs have not acted and the responses are few and far between.Turning now to the facilitating initiatives/measures that should be taken by theGovernment, it is observed that the affirmative responses of the SPVs are very high, withall the responding SPVs unanimously endorsing the need for as many as four out of thesix measures listed in Table 5.4. Here the most important measures seem to be supportof the State Governments in the proper and timely enforcement of regulations, theprovision of infrastructure and assistance in land acquisition, provision of appropriate taxconcessions and other development incentives as well as the streamlining andsimplification of procedures. The second important measure that is desired from thegovernment is the support of the MSME to dovetail the relevant programmes andschemes offered by other ministries and agencies including the financial institutions. Thethird important initiatives is the proper selection and training of CDEs, and providingthese key catalytic functionaries with the resources and facilities to carry out their taskseffectively. Last but not the least is the importance assigned to the revision andelaboration of the programme guidelines and norms to remove all the presentambiguities and lack of clarity. It is also seen that at the level of actual implementationthese measures are perceived to be deficient and far from satisfactory.100