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

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Chapter No: 6 – Hard Interventions in Sampled ClustersUnlike the common processing facility seen in the first case this facility is adevelopmental facility and the very nature of this facility makes it difficult to sustainspecially when the size of the cluster and thus the cluster users are limited.On the basis of detailed discussions with cluster actors in both clusters the followingperceptions emerge regarding the impact of these common facilities.In the case of the CFC in the Rubber Cluster the following responses were recorded:• The CFC has improved the quality of products considerably.• The CFC has opened up the possibilities of diversification and moving up the valuechain.• The CFC has had a positive demonstration effect.• The CFC has to some extent led to greater trust and cohesiveness.• The CFC needs to enforce a differential tariff structure for cluster and non-clustermembers.• Larger units as compared to smaller units would better use the facility.Considering the responses above, the overall impact of the CFC on the cluster actorswhether they be users or non users has been significantly positive.In the case of the CFC in the Foundry Cluster in Ahemdabad the following responseswere recorded:• The CFC has improved the quality of products to some extent.• The CFC is likely to open up possibilities for diversification into very high-endmarkets.• There are serious doubts regarding the full utilization of the facilities by clustermembers thus viability is in doubt.• The CFC has not had any significant demonstration effect as yet.• The CFC has not brought about any trust or cohesiveness.• The CFC is the captive facility of a very few and does not benefit the cluster as awhole to any significant extent, as access is difficult and involves high transactionscost.Considering the responses above the overall impact of the CFC on individual clusteractors has been rather mixed if not insignificant.114
Chapter No: 7 – Conclusions nd RecommendationsCHAPTER7CONCLUSIONS ANDRECOMMENDATIONSBefore listing the specific conclusions and recommendations of our study it is importantto clearly stress that, at the overall level, our assessment of the CDP leads us to thedefinite conclusion, that the programme is most essential, and can be extremelyeffective.It should also be emphasized that it provides the much-needed support for the SMEsector at a time when we are opening up the economy and exposing our small industryto fierce global competition. This programme in fact provides the only ‘safety net’ forsmall and micro enterprises in the country. It is therefore recommended that the effortsof the MSME should be fully supported through the provision of additional resourcesduring the 11th Plan Period. Since the plan document clearly states its intentionsregarding inclusiveness, further support for this programme is certainly justified. Inwhat follows we highlight the specific conclusions and recommendations of this study.7.1 Need for a Scientific Definition of a “Cluster”A clear definition of a cluster is conspicuously absent in the present guidelines of the CDPprogramme. This may have led to the identification of a very large number of clustersfar beyond those which can be taken up considering the present capabilities of theinstitutions and functionaries involved. A more focused, feasible and prioritized set ofclusters needs to be identified for effective interventions. The basic criteria for theselection of clusters require the consideration of the following issues:• The need to clearly focus on goods producing clusters.• The need to identify those sectors wherein the contribution of SMEs are predominantand where traditional skills combined with an abundance of locally available inputswhich enables the production of goods which can compete nationally andinternationally because of their uniqueness and high quality.• Clusters, which are already organized and assisted, by strong associations, unionsand lobbies should be preferred.The need for determining a critical mass of viable and functional individual and strictlyindependent units, which have sustained their activities profitably over the last 5 years.This critical mass should reflect low dispersion and high density ensuring its effectivemanagement. Moreover a high degree of homogeneity (in terms of size / turnover /product range and other social characteristics) needs to be seriously considered toensure cooperation and collective action between the constituent units.Experts or institutions that have the requisite capabilities, and are capable of carryingout this task in a definite time frame, should undertake the identification andprioritization of clusters for effective interventions. These institutions should also berequired to conduct the diagnostic study for which standard guidelines should be115
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EVALUATION STUDY OF MICRO & SMALLEN
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2.12 PROGRESS AND PRESENT STATUS OF
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INDEX OF TABLESTable No.- 1.1: CLUS
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COMMONLY USED ABBREVIATIONSBDSBusin
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31 million persons spread over 12.8
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Nevertheless, it is expected that t
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4. Role of the schemes in bringing
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Table No. - 1.1 (contd.)East/ North
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ANNEXURE - 1.1 Guidelines for Clust
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• Approval of budget and leveragi
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14. Contribution of the Ministry of
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Chapter No:2 - The General Profile
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