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NABARD Cluster Development Programme

National Programme for Rural Industrialisation (NPRI) for development of Clusters

The National Programme for Rural Industrialisation (NPRI) was proposed by the Union Finance Minister in his budget speech for the financial year 1999-2000, with a mission to set up 100 rural clusters every year for the next five years to, give a boost to rural industrialisation. As a part of its commitment to NPRI programme, 56 clusters were developed by NABARD (against the self imposed target of 50) during the five year period 1999-2000 to 2003-04.

New Cluster Policy

Considering the excellent potential in the cluster approach for rural industrialisation and the recognition of NABARD's role in rural clusters by several agencies including the GoI, NABARD has decided to go in for intensive development of five selected clusters on its own and 50 additional clusters by partnering with other government agencies from 2005-06.

Cluster Philosophy

  • Focussed assistance.
  • Demand based assistance.
  • Flexible instruments of assistance to meet specific needs of cluster.
  • Close monitoring to spur continuous development and innovation.

Objective

Strengthening of existing clusters and development of new clusters in exceptional cases towards sustainable competitive advantage through technology upgradation & transfer, raw material access, skill development, managerial inputs, credit support and marketing assistance.

Cluster Development - Strategy

  • Identification of clusters.
  • Diagnostic study and preparation of cluster status and action plan.
  • Identification of solutions to problems / issues.
  • Selection of NGOs/ Vas / Developmental Agencies.
  • Constitution of Cluster Development Committee, assignment of clear roles to various partner agencies
  • Approval of Action Plan / Launching of the Programme
  • Sensitisation for the partners of the programme.
  • Group mobilisation/ motivation.
  • Awareness / Skill development of artisans.
  • Increasing product range and improving quality and productivity.
  • Supporting technology upgradation / transfer.
  • Implementation of credit linked promotional programmes through NGOs / VAs / Developmental Agencies.
  • Monitoring the progress closely through the Cluster Development Committee at regular intervals.
  • Development of Management Information System.

SFURTI

During 2005-06 Govt. of India, Ministry of Agro and Rural Industries has introduced a new scheme, "Scheme of Fund for Regeneration of Traditional Industries"(SFURTI) with an initial allocation of Rs.100 crore with the objectives of making traditional industries more competitive and more market-driven, strengthening the local governance systems of industry clusters with the active participation of the stakeholders and build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnership, so as to gradually replicate similar models of cluster-based regenerated traditional industries.

The Scheme will be implemented by KVIC over a period of five years from 2005-06. NABARD has decided to associate with KVIC in this endeavour

Source: www.nabard.org

 
 
 
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