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

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Chapter No: 7 – Conclusions nd Recommendationsprovided an opportunity to carry out these challenging tasks. A campus recruitmentprogramme can also be launched for the purpose.In the present situation the CDEs are not adequately trained and familiarized with clusterdevelopment. There is a need to provide a comprehensive long-term foundation courseto freshly appointed CDEs. There is also the need to strengthen their skills and abilitiesthrough regular refresher courses specially designed on subjects such as financialmanagement, project management, organizational behaviour, team work, andcooperation.At present the facilities and allowances provided to the CDEs are extremely deficient.Matters are made worse by assigning them with additional responsibilities not directlyrelated to the CDP, and also the responsibility of managing more than one cluster at atime. The tenure conditions of the CDEs are very unstable and they are frequentlytransferred from one place to another. It is also important to mention here that thesuccess of a CDE largely depends on the goodwill and rapport that he develops over asufficiently long tenure. His frequent transfer from one cluster to another does not reallyallow him to settle down to serious work de-motivating him, as well as the cluster actors.The appointment of a “Mentor” for a set of contiguous clusters would also go a long wayin guiding and assisting the work of the CDE. This Mentor could either be a retiredofficer/executive with the necessary competence and experience or could also be aninstitution, which assists and guides the CDE in his day-to-day functions. It is also veryessential to appoint a Network Development Agent (NDA) or Local Organizer to assist theCDE in his work. This Local Organizer should be appointed from within each cluster,knowing the local language, and acting as a constant link between the CDE andindividual units.Additional funding and support is urgently required for the purposes highlighted aboveduring the 11th FYP.7.5 Soft Interventions, their Content, Scheduling, Evaluation,and Validation:Soft interventions are important measures designed to spread the necessary awarenessregarding the benefits of the cluster development programme. These interventions arenormally targeted at individual cluster actors. These interventions are meant to bringthe individual constituents of the cluster on a common platform and provide anopportunity for the democratic firming up of common objectives and to collectively meetthe common challenges faced by the cluster. Soft interventions also provideopportunities for visiting and learning from the experiences of other successful clustersthereby effectively bringing about a conducive mindset for cooperation. Based on ourstudy the following issues have emerged and require attention:The funds presently allocated for soft interventions needs review and revision. Theyshould be increased from the present level of Rs 10 lacs to Rs 50 lacs of which Rs 10 lacsshould be specifically earmarked to meet the cost of monitoring these interventions.118
Chapter No: 7 – Conclusions nd RecommendationsThese enhanced funds should be released without delays in order to provide adequatetime for the full utilization of these funds over a stipulated period of time.The present provision of 3 years to carry out these interventions is far too long and thepace of intervention far too slack to have any significant impact. Cluster actors tend toloose interest in the programme in such a situation. Therefore all soft interventionsshould be carried out within a period of 12 to 18 months at the most.In the event of the cluster actors not being able to form and register an SPV within theperiod provided for soft interventions, further interventions in the cluster should beterminated.In order to ensure that the soft interventions are effectively implemented they should beclosely monitored by a suitable monitoring agency appointed for the purpose. Theagency should be required to submit a detailed quarterly report on the progress of softinterventions and the utilization of funds. The soft interventions should be suspended inthe event of an adverse report. The funds allocated for soft interventions may bereleased in two or three installments subject to the proper utilization of funds as reportedby the monitoring agency.If the cluster succeeds in forming and registering the SPV during the period in which softinterventions are in progress, the hard intervention may be simultaneously initiated.The term ‘Soft’ is inappropriate and sends out undesirable signals to most implementers.A more appropriate term such as ‘Basic’, ‘Primary’, ‘Enabling’, or ‘Catalytic’ shouldreplace the term ‘soft’, which is currently used.7.6 Special Purpose Vehicles (SPV):The Special Purpose Vehicle is an important institution that enables the delegation ofspecific responsibilities and the transfer of funds for the creation of a common facilitycentre catering to the needs of the individual units in the cluster. Our study of sampledclusters indicates the following:Institutional Form of the Organization: SPVs can be established in the form ofCooperative Societies or Private Ltd. Companies. In the case of dense clusters with alarge number of individual units the formation of a registered Cooperative Society ismore suitable. In the case of clusters with a limited number of individual units theformation of the SPV as a Private Ltd. Company seems more suitable. However onemust be warned that the upper limits normally stipulated on the number of personsforming the company often restricts participation and leads to the domination of the SPVby those who are members of the board. Constituent units combining to jointly own thecontrolling shares in the SPV however can overcome this problem.Democratic Participation and Inclusiveness: In order to sustain and equitably sharethe benefits of hard interventions it is most essential to maintain democratic participationand inclusiveness. It is therefore necessary to ensure that all willing cluster actors who119
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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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Chapter No: 3 - The Cluster Develop
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Chapter No: 3 - The Cluster Develop
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