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

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Chapter No:2 – The General Profile of Sampled Clusters2.3 Cluster Configuration,Viability and SustainabilityOn the one hand we have the geographical spread or dispersion along with the numberof individual units giving us the ‘cluster density’ and on the other we have the turnoverthat gives us an idea of the scale of activity. If we now combine these twocharacteristics we obtain the cluster configuration. The cluster configuration provides usa useful theoretical basis for identifying and selecting clusters for intervention. On oneend of the cluster configuration we have clusters that are compact and having a largenumber of units making them dense along with a high turnover. These clusters are bothviable and sustainable as they provide the ideal critical mass for effective interventions.On the other extreme of the cluster configuration we have those that are very widelydispersed and having a small number of individual units making them low in densityalong with a low turnover. These clusters are generally less viable and sustainable asthey often are difficult to manage. These do not provide the critical mass for effectiveintervention. Between these two extremes both density and turnover may combine indifferent ways to determine the degree of viability and sustainability. In these cases theadditional factor such as the degree of heterogeneity/homogeneity also determines howeasy it would be to mobilize individual units for collective action and sustainedcooperation. Clusters in this range of cluster configuration which are highlyheterogeneous, with individual units varying widely in size and scale of activity, are likelyto appear viable but would be difficult to manage and sustain in the long run. In theseheterogeneous clusters the larger units may come forward to form SPVs and to set upcommon facilities, however the use of these facilities are likely to be monopolized withthe smaller units being discriminated against. Such conflict situations have often beennoticed in the case of heterogeneous clusters.In Table 2.4 we have combined the three characteristics namely geographical dispersion,number of units (size of cluster), and aggregate turnover as well as the average annualturnover. These were separately discussed earlier in this chapter. Considering thecluster configuration worked out on the bases of these characteristics we have broadlyand roughly indicated the present status of these sampled clusters. This three foldclassification of the status of clusters are, clusters which are most viable and sustainable(MVS), clusters which are least viable and sustainable (LVS) and clusters which due to ahigh level of heterogeneity are Viable but difficult to sustain (VDS).On the whole, with both our sampled cluster groups taken together, it is seen that asmany as 14 of the 22 clusters (64 percent) are most viable and sustainable. However itmust be noted that the viability and sustainability in the case of these 14 clusters variesaccording to their respective ranks. It is also seen in Table 2.4, that there are 4 specificclusters that appear to be viable but would be difficult to sustain. This is mainly onaccount of both their respective cluster configuration as well as the fact that they areobserved to be more heterogeneous with the inter-unit differences in these clustersbeing substantial. We also have a group of 4 specific sampled clusters that we considerto be the least viable and sustainable, and as a result of our analysis we would considerthe development of these clusters to prove problematic in the future.34
Chapter No:2 – The General Profile of Sampled ClustersTable No.-2.4: CLUSTER CONFIGURATION, VIABILITY AND SUSTAINABILITYAll Sampled ClustersSl ClusterDispersion Size Turnover Cluster RankConfigurationC D L S H M& Status18. Plastic Cluster Aluva √ √ √ MVS 110. Ball bearing Cluster Jaipur √ √ √ MVS 215. Diesel Engine Cluster Rajkot √ √ √ MVS 322. White ware Cluster Khurza √ √ √ MVS 419. Sewing Machine Cluster √ √ √ MVS 5Ludhiana21. Wet Grinder Cluster√ √ √ MVS 6Coimbatore20. Surgical Instruments√ √ √ MVS 7Cluster Baruipur13. Brass Utensil Cluster Pareo √ √ √ MVS 89. Rubber Cluster√ √ √ MVS 9Chenganacherry16. Fan Industry Cluster√ √ √ MVS 10Hyderabad11. Bell metal Cluster Khurda √ √ √ MVS 114. Leather Goods Cluster√ √ √ MVS 12Shantiniketan12. Bell metal Cluster Hazo √ √ √ MVS 131. Bamboo Cluster Dimapur √ √ √ MVS 148. Rice Milling Cluster Kalady √ √ √ VDS 155. Plywood Cluster√ √ √ VDS 16Perambavoor6. Rice Milling Cluster Karnal √ √ √ VDS 1717. Foundry Cluster Ahmedabad √ √ √ VDS 183. Leather Goods Cluster Agra √ √ √ LVS 192. Food Processing Cluster√ √ √ LVS 20Muzffarpur14. Cotton Hosiery Cluster√ √ √ LVS 21Kanpur7. Rice Flakes Cluster√ √ √ LVS 22AhmedabadNote: C - Compact; D - Dispersed; L - Large; S - Small; H - High Turnover; M–Modest TurnoverMVS-Most Viable and Sustainable; VDS-Viable but Difficult to Sustain (due to Heterogeneity)LVS- Least Viable and Sustainable35
Page 1 and 2: EVALUATION STUDY OF MICRO & SMALLEN
Page 3 and 4: 2.12 PROGRESS AND PRESENT STATUS OF
Page 5: INDEX OF TABLESTable No.- 1.1: CLUS
Page 9: COMMONLY USED ABBREVIATIONSBDSBusin
Page 13 and 14: 31 million persons spread over 12.8
Page 15 and 16: Nevertheless, it is expected that t
Page 17 and 18: 4. Role of the schemes in bringing
Page 19 and 20: Table No. - 1.1 (contd.)East/ North
Page 21 and 22: ANNEXURE - 1.1 Guidelines for Clust
Page 23 and 24: • Approval of budget and leveragi
Page 25 and 26: 14. Contribution of the Ministry of
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Chapter No: 4 - Soft Interventions
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Chapter No: 5- The Special Purpose
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Chapter No: 6 - Hard Interventions
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Chapter No: 7 - Conclusions nd Reco
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