The Hindu : Kerala / Kochi News : Minister: cluster scheme helps in development of micro industries

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Tuesday, Jan 12, 2010
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Minister: cluster scheme helps in development of micro industries

Staff Reporter

441 clusters, Common Facility Centres set up with Central assistance

— Photo: Vipin Chandran

Micro-level intervention: Union Minister of State for Micro, Small and Mpedium Enterprises Dinsha J. Patel arriving at the Common Facility Centre for the Perumbavoor Plywood Consortium in the Angamaly industrial area on Monday.

KOCHI: Union Minister of State for Micro, Small and Medium Enterprises (MSME) Dinsha J. Patel said here on Monday that cluster development had helped industries in the country to find their feet amid severe competition during a period of rapid globalisation.

The Cluster Development Programme and the Scheme of Fund for Re-Generation of Traditional Industries (SFURTI) to enhance competitiveness of MSMEs had been launched to help the micro, small and medium-scale industries, he said while inaugurating a Common Facility Centre for the Perumbavoor Plywood Consortium in the Angamaly industrial area.

He said the MSME Ministry had helped set up 441 clusters so far and Common Facility Centres had been taken up in 41 of these clusters. More than 120 clusters had been taken up under SFURTI, which included programmes to upgrade facilities for artisans in the coir, village and khadi industries.

Apart from the benefits of cluster development, the consortia/associations or special purpose vehicles under the scheme can benefit from other programmes under the MSME and other ministries. Liberal design clinics, IPR facilitation centres, mini-tool rooms, lean manufacturing technology and market development programmes are available under various schemes.

Mr. Patel said he expected revolutionary changes in the khadi industry in the country with the implementation of several programmes with loan from the Asian Development Bank (ADB).

An agreement had been signed by the Government of India and the ADB for reform in the khadi sector. This involved an assistance of US $150 million over a three-year period. Approximately, 300 organisations are expected to get a package for reform and reorganisation, said Mr. Patel.

Programmes like the Rajiv Gandhi Udyami Mitra Yojana and the Prime Minister’s Employment Generation Programme, under the Ministry of MSME, is being implemented throughout the country using the Khadi and Village Industries Commission as the nodal agency.

During the 11th Five Year Plan, the target for financial assistance is Rs. 4,735 crore and the expected employment generation is to the tune of 37 lakh, the Minister added.

He said the Prime Minister had issued a directive for a report on small and medium industries and that the task force set up for the purpose was expected to submit its report soon.

The MSME sector continues to dominate the economic scene, generating the largest volumes of employment and income in the country. There are 2.60 crore such enterprises in the country and they account for approximately 80 per cent of the workforce, 45 per cent of the country’s production and 35 per cent of the exports.

President of the Plywood Cluster C.K. Abdul Majeed welcomed the gathering.

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