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

Chapter No: 7 – Conclusions nd Recommendationsdesire to join as members of SPV even at a later stage are allowed to do so bypurchasing controlling share at a higher price.A Clear Statement of its Strategic Intentions: It is observed that few SPVs thathave been formed from among the sampled clusters do not have a clear mission orstrategy document which will avoid its deviation from the strategic goals of the cluster.It is essential to require the SPVs to formulate this mission and strategic statement andcommit itself to following the stipulated strategy prior to the release of centralassistance.Clear Definition of its Objectives and Scope: It is equally important for the SPV toclearly articulate its objectives and scope in order to avoid attempting more than what isviable and feasible or subsequently diluting its objectives and scope.Democratic and Representative Choice of Common Facilities: The commonfacilities are the basis of the creation of the SPVs and the large expenses incurred tocreate these facilities can only be justified if allowances are made to arrive at a properconsensus on the type of common facilities that are needed by the cluster at large. Thefuture viability and proper capacity utilization of these facilities will only be sustained ifsuch facilities are selected and created with the active participation of all the potentialusers. Arrangements therefore should be made to consider the opinions of cluster actorsunder the close supervision of the CDE/CDA. It is noticed that at present, commonfacilities are being selected by a set of influential office bearers and dominantpersonalities in the SPV Board of Directors.The Proper and Time Bound Formulation of a DPR: The DPR is a critical document,which guides the creation of common facilities. It should therefore be very carefullyformulated as the planned project it often involves the use of fairly advanced technologyand procurement of expensive equipment. The DPR should be formulated on the basis ofdetailed consultations with technical experts and should be a time bound exercise.Adequate provisions should be made for consulting experts and expert institutions, andthe costs related to consultancy should be factored into the estimates submitted forapproval. The careful formulation of a DPR and its time bound approval is most essentialin order to avoid subsequent revisions and modifications. These are likely to be not onlytime consuming but also lead to cost escalations. Costs escalations arising fromsubsequent modifications are not likely to be sanctioned by the sponsors. In many casesit has been observed that the sponsor has insisted that the escalations or additional costsbe born by the SPV or alternatively a revised proposal resubmitted and consideredafresh.7.7 Hard Interventions,heir Contents, Scheduling, Evaluation andValidationThe entire CDP programme ultimately works towards the implementation of hardinterventions in the form of a common facility centre. It is only with the completion andcommissioning of the CFC that the real benefits of cluster development aredemonstrated. The successful implementation of these hard interventions providessubstantial gains in productivity thereby helping the cluster to sustain itself and grow.120