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

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Chapter No: 4 – Soft Interventions in Sampled ClustersThe CDE catalyses frequent interaction among the cluster members and also with otherimportant stakeholders in the CDP. Awareness programmes, training sessions and visitsto existing clusters within the country, and outside are, arranged to aid the process ofincreasing awareness of the power of collective interventions that strengthen the clusteras a dynamic entity with immense inert potential for development through cooperation.Soft interventions can be divided into three specific categories that need to besequenced in the following order:4.1.1 Awareness CreationThe first task is to create a high-level awareness and interest of the cluster actors aboutthe various benefits of the Cluster Development Programme. The actors should beexposed to the objectives, the guidelines and norms designed to strengthen collectivebenefits and the effective exploitation of the economies of scale.At this stage, the CDE organises meetings with the actors through their associations andat the individual level. This effectively increases self-confidence and self esteem andremoves various apprehensions and doubts regarding the viability and sustainability ofthe action plan by exposing them to the experiences of other successful cluster initiativesat home.4.1.2 Confidence BuildingHaving created awareness, the Cluster actors need to be exposed to the externalsituation and technological advancements to make them understand the benefits of theadoption of these for the development of their own cluster. The actors need to be told ofthe benefits of coming together through the formation of an SPV. Exposure visits to otherclusters within the country training programmes to enhance the horizon of the actors aresome of the programmes that are undertaken at the second stage. Experts from theseinstitutions also facilitate linkages with the financial, technology and marketinginstitutions, through these visits and through presentations.4.1.3 Capacity BuildingHaving understood the concept of cluster development and need for collectivefunctioning, the cluster actors can then be motivated to form a Special Purpose Vehicle,identify and evaluate the options for setting up the Common Facility Centre, while alsodemocratically choosing the most suitable form of a legally recognised organisation toinitiate common facilities most needed by the cluster. Achieving the highest level ofconsensus about these facilities is most important to harness all the latent collectiveenergy of the cluster.4.2 Soft Interventions under the CDPAll the clusters have carried out activities and programmes related to the creation ofawareness about the Cluster Development Programme. Most of the clusters haveundertaken exposure visits also. The Programmes related to energy efficiency, which hasan important role in improving the productivity of units, particularly so in the secondarygoods based clusters, have been undertaken only in two primary goods based clusters.78
Chapter No: 4 – Soft Interventions in Sampled ClustersDeveloping financial linkages is important for strengthening the artisan-based clusters. Ithas been observed that only two clusters have undertaken initiatives in this direction.The following Table 4.1 highlights the soft interventions recommended on the basis ofDiagnostic Study, and those actually carried out in the sample clusters. As the table isvery detailed and incorporates a wide range of interventions it has been appended at theend of this chapter.4.2.1 Allocation and Utilization of Funds for Soft InterventionsThe fund allocation for soft interventions varies widely across different sampled clusters.The absence of any uniformity across different clusters indicates the discriminatorynature of these allocations. They are devoid of any rationality and reflect ad-hocdecisions on the part of authorities. As seen in Table 4.2, the Rice Flakes ClusterAhmedabad, has the lowest fund allocation of Rs. 13.64 Lakhs for three years whileWhite ware Cluster Khurza had the highest allocation of Rs 67 Lakhs. All clusters, exceptDiesel Engine Cluster, Rajkot could not make 100% utilisation of the allocated funds. Therange of utilisation of funds varies between 24% in case of the Rice Flakes ClusterAhmedabad to 91% in the case of Bamboo Cluster Dimapur.The two clusters having the highest rate of utilisation of the allocated funds are DieselEngine Cluster Rajkot and Bamboo Cluster Dimapur. Both these clusters have CDEs fromEDI and IIE respectively. The clusters directly handled by the field offices of MSME havea low utilisation of funds allocated for the soft interventions.79
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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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Evaluation Study MSE Cluster Development - Ministry of Micro ...

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