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

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Chapter No:2 – The General Profile of Sampled Clustersformalities. Stage III involves the careful selection of the CFC and the formulation of aDetailed Project Report (DPR), and the acceptance and approval of the proposal by thesponsors. Arriving at a consensus on the choice of the most appropriate CFC is itself adifficult and time consuming process. The formulation of a DPR often involves prolongedconsultations with experts, and equipment manufacturers. Access to affordableexpertise either from individuals or institution is not easy and often comes at a fairly highcost. The process of approval may also prove to be very cumbersome and timeconsuming and clusters are likely to get ‘stuck’ in this stage. Stage IV involves thesetting up of the CFC, the pace of construction depends on the timely supply ofequipment and machinery, and this is conditional to the regular and timely disbursementof payments. The timely release of approved funds by the MSME as well as theconcerned State Government is critical for the timely completion of this stage. Delays inthe Stage IV can lead to cost escalation which are not acceptable to sponsors and wouldhave to be born by the concerned SPV, as a consequence the DPR and related estimatesmay have to be modified causing further delays in successfully completing this stage.The final Stage V involves the commissioning of the CFC and ensuring the full utilizationof the capacity created.The proper testing of installed machinery the conduct of trial runs, the removal ofteething problems which often takes time as equipment suppliers do not attend to theneed for prompt after sales services. The purchase agreements are also not properlyframed to incorporate the timely provision of such services.The proper training of workers who are required to operate these machines may alsocreate problems in the initial phase of operations. The pricing of services provided bythe CFC is also an important issue as both under pricing or over pricing brings with it ahost of other problems affecting the equitable utilization of the facility by individual unitsin the cluster.We now turn to Table 2.16 to highlight the present status of cluster development in thesampled clusters at the time this study was conducted. As seen in the Table 2.16 thereare as many as 11 clusters which are still in Stage I. While 4 of these clusters belong tothe PGBC group the remaining 7 clusters belongs to the SGBC group. It is ratherdisappointing to find as many as 50 percent of the sampled clusters in Stage I. Severalfactors as mentioned above have been responsible for the slow pace of implementationof the CDP with such a large number of clusters still stuck at the very first stage of theprogramme.Table No.-2.16: CDP IN SAMPLED CLUSTERS AND PRESENT STATUSPrimary Goods Based ClustersSl Cluster Stage1. Rice Milling Cluster Karnal I2. Rice Flakes Cluster Ahmedabad I3. Rice Milling Cluster Kalady IV4. Food Processing Cluster Muzffarpur II5. Rubber Cluster Chengnacherry V6. Bamboo Cluster Dimapur I54
Chapter No:2 – The General Profile of Sampled ClustersTable No -2.16 (Contd.)Primary Goods Based ClustersSl Cluster Stage7. Plywood Cluster Perambavoor IV8. Leather Goods Cluster Agra I9. Leather Goods Cluster Shantiniketan IIISecondary Goods Based ClustersSl Cluster Stage1. Cotton Hosiery Cluster Kanpur I2. Plastic Cluster Aluva IV3. White ware Cluster Khurza II4. Brass Utensil Cluster Pareo IV5. Bell metal Cluster Khurda I6. Bell metal Cluster Hazo IV7. Foundry Cluster Ahmedabad V8. Ball bearing Cluster Jaipur I9. Hand tool Cluster Jallandhar I10. Surgical Instruments Cluster Baruipur IV11. Sewing Machine Cluster Ludhiana I12. Wet Grinder Cluster Coimbatore IV13. Fan Industry Cluster Hyderabad I14. Diesel Engine Cluster Rajkot IAll Sampled ClustersSl Stage Numbers1. I 112. II 23. III 14. IV 75. V 2Note: The five different stages indicated in the tables above are defined as follows:Stage I- CDE appointed, Diagnostic Study completed and Soft interventions carried outStage II- SPV formed and registered.Stage III- DPR submitted and approvedStage IV- Setting up of CFC in progressStage V- CFC commissioned and functionalIt is also not very encouraging to note that only in the case of 2 clusters has Stage IIbeen accomplished. One cluster is still in Stage III of development, while 7 sampledclusters are in Stage IV. Only 2 of the clusters have managed to accomplish Stage V.Considering the stages in which the sampled clusters have been found at the time of thestudy it is premature to assess the full impact of the CDP. The figures also clearlyindicate that the pace of implementation has been very slow and appropriate measuresare required to avoid this stagnation.55
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
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Page 63 and 64: Chapter No: 3 - The Cluster Develop
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Page 91 and 92: 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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