1. The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.
2. A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same/similar products/services.
3. The essential characteristics of enterprises in a cluster are (a) Similarity or complementarity in the methods of production, quality control and testing, energy consumption, pollution control, etc (b) Similar level of technology and marketing strategies/practices (c) Channels for communication among the members of the cluster (d) Common challenges and opportunities.
4. A comprehensive MSE-CDP is being administered by the office of Development Commissioner (MSME), the Ministry of MSME.
5. Objectives of the Scheme
To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc.
To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc.
To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.
To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc).
6. The procedure and funding pattern for admissible activities, namely:-
Diagnostic Study Reports: To map the business processes in the cluster and propose remedial measures, with a validated action plan.
Soft Interventions: Technical assistance, capacity building, exposure visits, market development, trust building, etc for the cluster units.
Detailed Project Report: To prepare a technical feasible and financially viable project report for setting up of a common facility center for cluster of MSE units and/or infrastructure development project for new industrial estate/ area or for upgradation of infrastructure in existing industrial estate/ area/ cluster.
Hard Intervention/Common Facility Centers (CFCs): Creation of tangible “assets” like Testing Facility, Design Centre, Production Centre, Effluent Treatment Plant, Training Centre, R&D Centre, Raw Material Bank/Sales Depot, Product Display Centre, Information Centre, any other need based facility.
Infrastructure Development: Development of land, provision of water supply, drainage, Power distribution, non- conventional sources of Energy for common captive use, construction of roads, common facilities such as First Aid Centre, Canteen, other need based infrastructural facilities in new industrial (multi- product) areas/estates or existing industrial areas/estates/clusters.
Entrepreneurship Development and Innovation Institute’s Program for Clusters in Tamil Nadu
1. EDII is taking initiatives to create awareness about scientific and managerial aspects of Cluster related development supports by Government.
2. EDII is providing facilities for training on various topics to Cluster Managers and members to improve their skill set. The trainings are also arranged at Cluster place itself by engaging Experts in this field, if required.
3. Awareness training is also given on ‘Lean Manufacturing Competitiveness Scheme (LMC), Energy Management, Design Clinic Scheme which are falling under ‘National Manufacturing Competiveness Program (NMCP)’ of Government of India.
4. Edi is also supporting linkages between Educational Research Institutions / Technical Colleges & Institutes to for cluster development located in their area and provide technical support.