Backgrounder
A ‘cluster’ may be defined as the agglomeration of enterprises producing same/similar products/services or engaged in the same line of manufacturing activities or services, located within an identifiable and, as far as practicable, contiguous area.
Industrial cluster occupies the driver’s seat for propelling economic activities in Micro & Small Enterprises (MSE) sector. The Ministry of Small Scale Industries (now Micro, Small & Medium Enterprises) laid special emphasis for development of cluster and launched a scheme Technology Upgradation and Management Programme called UPTECH in 1998. Although it was having a cluster based approach for development of MSE, but was mainly technology-focused comprising of diagnostic study, setting-up of a demonstration plant and organising workshops, seminars, etc. for quicker diffusion of technology across the cluster of small enterprises. Later, in August 2003, the scheme was renamed as Small Industry Cluster Development Programme (SICDP) and made broad based by adopting holistic pattern of development of the cluster encompassing marketing, exports, skill development, setting up of common facility centres, including technology upgradation of the enterprises, etc.
Broadly, the Cluster Development Programme implemented till March, 2006 consisted of assistance mainly in “soft” areas, which encompasses activities like general awareness and trust building, counselling, training and capacity building, exposure visits, credit facilitation, market developments etc.
SICDP guidelines were comprehensively revised in March, 2006 making the cluster programme more broad-based by facilitating substantial economics of scale in terms of deployment of available resources in the medium to long term. The Government of India’s assistance under the scheme was enhanced upto Rs.8 crore to support soft as well as hard intervention, including setting up of common facility centres.
As per the Promotional Package announced by the Government, SICDP was renamed as Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) to make it more attractive, though basic features of this scheme have been retained as such. The proposals for setting up new clusters shall now be considered under MSE-CDP and the quantum of grant has been raised to 75% of the cost and the project cost has been raised from Rs. 5 crore to 10 crore. Raising the project cost to Rs. 10 crore and the central grant upto 7.5 crore is quite attractive and is expected to encourage the setting up of new clusters for micro and small enterprises.
Cluster approach is different from the concept of development of Industrial Estates. The latter is largely based on infrastructure development and creation of new assets, whereas, cluster development aims at holistic development (covering diverse areas like marketing, export promotion, skill upgradation, infrastructure etc.) and may be designed to cover industrial estates as well as natural clusters, which may have evolved on their own historically at any place.
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MG/SR
(Release ID :31833)