Cluster Development Approach

The strong presence of 76 identified manufacturing sectors consisting of a large number of small and medium scale industries provides a very vibrant manufacturing base for the state. Each of these sectors is located in clusters spread throughout the state. With increasing extent of globalization and liberalization, when economies of scale and quality would play predominant role in the international trade, empowering industries of the state to meet such challenges is an imperative need of the present time. The cluster development approach is therefore an important initiative for empowering the clusters to face the challenges.

The Government therefore, plans to strengthen existing clusters in the state to provide necessary support to meet the challenges ahead.The Government aims to empower the clusters by providing need-based financial assistance for taking up strengthening activities. For the purpose, individual clusters will be rated by accredited rating agencies in terms of technical and managerial competence, level of maturity, administrative set up, past track record, transparency of operations, etc. Based on the grading, quantum of financial assistance will be decided. The assistance will be provided for the purpose of helping the clusters in up-gradation of both product design and technology, quality improvement, R&D activities, common branding and marketing facilities, development of common facilities such as library, testing and certification laboratories, tool room, soft skill development, capacity building for workers & supervisors in terms of skill up gradation and productivity etc., besides the up-gradation/creation of common infrastructure facilities. Assistance to the identified clusters will be from existing schemes of the government. Detailed guidelines for assistance will be laid down separately.

The Government also has decided to offer concessions in the form of electricity duty exemption for a period of first five years to the cluster associations if they set up either common power plants or common effluent treatment plants or waste recycling plants.

Develop Common Facility Centres in the Clusters

 The associations would be encouraged to take up the following activities.

·         Creation of common facilities

·         The cluster associations will also help the member units by involving R&D institutions in up gradation of technology with the help of Government fund

·         The associations will assist their member units to tie up bank finance and at the same time will also help the banks to recover their dues.

·         The Government will also encourage cluster associations to set up cooperative banks to enable member units to avail of finances at competitive cost.

·         The associations will also help the units to find new markets.

·        The associations will encourage common branding and marketing through the brand development and marketing fund.

·         The cluster associations will launch a campaign for the use of cleaner technologies.

·         The cluster associations will also arrange for the capacity enhancement programmes including productivity improvement for the workforce engaged in the member units.

·         The cluster associations will also motivate the member units to go for review of energy and water consumption for the purpose of conservation of these resources.

Source: www.gujaratindia.com