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CII to start industrial clusters for SMEs

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S Bridget Leena Chennai
Last Updated : Feb 06 2013 | 7:38 PM IST
The Confederation of Indian Industry (CII) has planned to start four industrial clusters for small and medium enterprises (SMEs) having a turnover of less than Rs 15 crore for the four southern states this year.
 
A plastic component cluster in Pondicherry, mixed engineering clusters in Hyderabad and Bangalore, and a rubber processing cluster in Kerala have been identified. A heterogeneous cluster has already been started in Ambatur industrial estate in Chennai last month.
 
"We expect to add about 25 clusters across the country for the technology upgradation and modernisation of the small and medium enterprises," Sarita Nagpal, principal counsellor, CII, told Business Standard.
 
"SMEs today face three major impediments "� the reservation policy, financial availability and technology upgradation and modernisation. CII helps the SMEs join the cluster programme with the financial aid from Small Industries Development Bank of India (SIDBI). If the project is successfully implemented at the end of 18 months, SIDBI would reimburse Rs 25,000 to these SMEs," Nagpal said.
 
Nagpal said that many small enterprises having a turnover less than Rs 15 crore face similar problems irrespective of the sector they belong to.
 
The technical expertise gained from the auto component cluster can be leveraged to other clusters as the process is the same, she said.
 
"The focus of the mixed cluster will be to achieve increased productivity through efficient use of resources and also maintain good quality standards," Nagpal said.
 
She said that the heterogeneous cluster approach helps the SMEs increase their productivity, improve quality, be cost effective, helps them deliver products on time, abide by safety standards and increase workers' morale.
 
These clusters also enable the SMEs to eliminate waste, arrange workplace, avoid mistake-proof systems etc, she added.
 
It is estimated that there are about 400 modern small scale enterprises and 2,000 rural and artisans-based clusters in India.
 
These clusters contribute up to 60 per cent of India's manufactured exports and contribute a substantial share in employment generation.

 
 

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First Published: Jun 22 2004 | 12:00 AM IST

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