The central government is drawing up a policy for the upgradation of infrastructure at various industrial clusters spread across the country.
The centre is likely to grant up to three-fourth of the amount needed for upgradation, and give the owners of units within the cluster a free hand to manage it.
"Infrastructure at various industrial clusters has deteriorated considerably, and there is a dire need to upgrade them. Each cluster could be modernised with a funding of up to Rs 50 crore.
More From This Section
While the Centre will provide three-fourth of this amount by way of grant, industrial units in the clusters will have to chip in the balance," Shrawan Nigam, economic adviser, ministry of commerce & industry, said.
Upgradation of infrastructure at clusters is envisaged in the 10th Five year plan (2002-2007), Nigam said in his address at a seminar on 'Economic Clusters : A Strategy for Growth.'
The seminar was organised by the Bombay Chamber of Commerce and Industry and the Associated Chamber of Commerce and Industry of India (Assocham).
Competitiveness of small- and medium-scale enterprises (SMEs) increases through their organisation into industrial clusters.
SME clusters have existed in the country for several decades. There are approximately 350 urban and 2000 rural ones. However, most clusters have not been efficient economic performers.
Recognising their economic potential, the government has decided to promote cluster development as one of the main pillars of its small enterprises development policy.
Though the government will fund the upgrade, it will leave the management of the clusters to the businesses in the clusters. The central and state governments will play the role of facilitators.
Presenting the theme on growth strategies for economic clusters, Nasser Munjee, president, Bombay Chamber of Commerce & Industry, said good governance and a robust infrastructure were the only two external elements that needed to be provided to Indian entrepreneurs.
These two, according to him, would act as catalysts and enable them to take off from there.
He emphasised the fact that such clusters should ideally be centred around economic hubs. Specialisation and dispersion are important for cluster strategy, he added.