The Hindu : Karnataka / Bangalore News : Importance of cluster model for small-scale units stressed

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Tuesday, Jul 15, 2008
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Karnataka

Karnataka - Bangalore

Importance of cluster model for small-scale units stressed

M. Raghuram

It will minimise investment on infrastructure, reduce pollution: KASSIA

Chinese products are benefiting from cluster development approach
Cost of investment is minimal in this model;
R & D will be available to all in cluster

BANGALORE: The Karnataka Small Scale Industries Association (KASSIA) plans to propose the cluster-development model for small-scale industries to the Government. This will also fit into the State’s environmental protection plans.

Advantages

Speaking to The Hindu, KASSIA president Arvind N. Burji outlined the importance of the new model. “Most of the countries in the developed world, including China, have developed the cluster model that has given them the advantage of minimising investment on land, capital, infrastructure and pollution control machinery,” he said.

Setting up of clusters would help industries pool in their resources, which would translate into smaller investments, shared bank charges and collective management. In case of ancillaries such as plating, foundry, plastic casting and fabrication, which are in the “red category” (this category denotes their environmental hazard levels), special environmental protection facilities are needed.

It would help the industries to have a common effluent treatment plant for each cluster, he said.

The Peenya industrial area, which was developed in the 1970s, was the last industrial estate developed by the Government.

Non-availability of land for developing industrial areas had become a major stumbling block for the growth of industries in the State, Mr. Burji said.

Chinese products were able to compete with those manufactured in other developed countries due to the cluster development approach. The cost of investment was minimal and the fruits of research and product development would be available to all the participating industries in a cluster, he said.

Wrong location

At present, most of the industrial units are located in private industrial estates, which are not suited for housing industrial units. There is a demand for nearly 2,000 acres in Peenya industrial estate.

But due to spiralling land prices, it is out of reach for small-scale industries. Nearly 100,000 small-scale industrial units are now functioning in private industrial estates and the one in Kamakshipalya was an example, he said,

Mr. Burji said that owners of the estate are now serving notices of eviction to unit owners as the Karnataka State Pollution Control Board (KSPCB) was receiving many complaints from surrounding residential areas. As many as 45,000 units facing such problems are situated in private estates.

KSPCB officials have confirmed that they had issued notices to the industrial units in private estates, Mr. Burji said.

KASSIA had urged the Chief Minister, the Large and Medium Industries Minister and Small-scale Industries Ministers to make a separate policy with funds for the development of infrastructure in industrial estates, especially keeping in view private industrial estates and formation of industrial townships.

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