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

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Chapter No: 3 – The Cluster Development Executive/AgentCHAPTER3THE CLUSTER DEVELOPMENTEXECUTIVE/AGENT3.1 IntroductionMany ongoing cluster interventions are being pursued through a catalyst - a ClusterDevelopment Executive (CDE) or a Cluster Development Agent (CDA). He or She is animportant pivotal functionary who stays with the cluster through all its stages ofevolution and maturity. This important agent of change has a very challenging mandateand his role as a guide and facilitator is second to none in the CDP, and accounts for itssuccess or failure to a very large extent. Though the CDE plays an extremely critical roleunder the CDP, his effectiveness needs to be reinforced by a mentor institution, asupportive regional office of the MSME, the required technical consultants and R & Dinstitutions an experienced battery of BDS providers, and last but not the least an ablelocal Network Agent who is thoroughly familiar with the cluster.3.2 The Role and Functions of the CDE/CDAThe initial task of the CDE/CDA is the proper identification of the cluster highlighting itsviability and sustainability. This is mainly done through the conduct of a detaileddiagnostic study that carefully puts together the important general characteristics of thecluster such as its dispersion, size and the resulting density, the scale of operationsamong the constituent units, the nature of the cluster, the markets it caters to, and thevarious inputs that it requires. This diagnostic study comprehensively assesses theexisting externalities, the market prospects over the medium and long term as well asthe constraints and bottlenecks both contemporary and anticipated. Not only is thecluster comprehensively studied and identified through this diagnostic study but also astrategic plan for cluster development evolves on its basis. The selection of appropriateinterventions as well as the prioritization of these interventions is carried out on the basisof this initial study.This initial task is usually followed by the implementation of what are known as “softinterventions” that mainly involve the creation of awareness among individuals clusterunits regarding the benefits of cooperation and the systematic exploitation of the existingexternalities for the collective good. Soft interventions are particularly targeted atactivities that mobilize individual cluster units for collective action by encouragingdialogue and discussion among units, and are an attempt to evolve a shared vision andstrategy for enhancing competitiveness and productivity for the cluster as a whole.Mobilization of individual cluster actors for collective action is not an easy task andconcerted efforts are needed particularly on the part of the CDE/CDA to convince andmotivate many a dissident cluster actor to join the fold. All the efforts are primarilydirected towards ‘synergizing’ individual cluster actors into a vibrant collective andunleashing the power of cooperation to survive and sustain in a highly predatory andcompetitive industry normally dominated by large entities such as the large organizednational and international firms.62
Chapter No: 3 – The Cluster Development Executive/AgentThe next important task for the CDE/CDA is to catalyze the formation of a consortia or aspecial purpose vehicle, which is necessary for the creation of a common facilities centre.Here again while it may be possible to get individual cluster actors to form a consortia oran SPV, it is often difficult to get them to evolve a strong consensus on the kind ofcommon facilities that are most required by the cluster. The formation of the SPV andthe institutional form it should take in order to ensure democratic participation and theequitable sharing of both the managerial responsibilities as well as the benefits, alsodepend on how strong a consensus emerges, largely based on the competence andefforts of the CDA. The CDE therefore has an extremely responsible role to play andshould be adequately equipped to play his or her part most effectively. It is alsonecessary for the CDE/CDA to build a high level of trust among individual cluster actorsand also to generate a strong sense of confidence and trust in his own actions, throughbeing transparent, unbiased and respectful in his dealing with all cluster membersirrespective of their social or economic status. The formal registration of the consortia orSPV requires various formalities to be completed this includes a clear articulation of itsmission and objectives, the articles of association and rules, and also the mobilization ofshare capital from each of the units forming the SPV. All these formalities need theactive guidance and close attention of the CDE/CDA.Once the SPV is formally registered, the formulation of a Detailed Project Report isinitiated for the CFC. The proper formulation of the DPR and related estimates oftenrequires the involvement of technical consultants and also competent BDS providers.The identification and short-listing of equipment manufacturers is also required. TheCDE/CDA has to actively liaison and closely interact with these experts often assisted bythe Information Manager of the SPV who is equipped adequately with the informationtechnology and systems to enable the proper collation and analysis of a rangetechnological options, that aid the selection and final choice of the process technology tobe adopted.The CDE/CDA is also actively involved in the close monitoring of the administrativeprocedures and acts as an effectively bridge between the SPV and the Concerned CentralMinistry as well as the State Government. The process of setting up a CFC often involvesvarious clearances by various regulators and it is the CDE/CDA who has to follow up onthese procedures and enable the CFC to be set up within the proposed time framespecified in the DPR. Once the CFC is set up properly tested and commissioned theCDE/CDA should be relieved to take up a fresh assignment preferably in a similar clusterwhere his experience and expertise can be fully utilized.The general mandate of the CDE/CDA is thus as follows:To mobilize cluster actors for collective initiatives and utilize the externalities that exists.To assist the cluster actors to develop governance frame work for the cluster and tostrengthen all associational initiatives for a strong collective identity and to evolve asustainable action plan.To assist in formulating and catalyzing various interventions for achieving higherproductivity and competitiveness in accordance with a validated action plan.63
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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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Chapter No: 6 - Hard Interventions
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Chapter No: 7 - Conclusions nd Reco
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