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STI Policy – Framework and Operationalisation in
MSMEs
Mukesh GulatiExecutive Director
Foundation for MSME Clusters
Huge presence of MSMEs in Clusters
Type of Units Number of
Enterprises (million)
2006-07
Per cent of
Enterprises
Manufacturing MSMEs 11.5 100
Manufacturing MSMEs in
Clusters
7.3 63
Manufacturing micro
enterprises in cluster
6.9 60
Manufacturing micro-
micro enterprises in
cluster
4.9 43
Ranking of Sectors as per Contribution of MSMEs
SL No Sector- Census Employment Turnover GVA Export Total Average
1Food Products & Beverages
1 1 1 2 5 1.25
2 Textiles 2 2 2 3 9 2.25
3 Wearing Apparel 3 7 6 1 17 4.25
4Fabricated Metal Products
4 5 4 6 19 4.75
5Chemicals & Chemical Products
7 4 3 5 19 4.75
6 Machinery & Equipment 6 6 5 7 24 6
7 Basic Metals 9 3 7 10 29 7.25
8Other Non-metallic Mineral Products
5 10 9 9 33 8.25
Source: Tamal Sarkar, et.al. IAMR Study, 2012
Dimensions of Cluster: Thematic Challenges
SN Thematic Area Clusters (Products Only)
1 Energy IntensiveCastings & Forging, Steel re-
rolling, Foundry, Ceramics, Brick
2 Pollution Intensive
Leather, Dyes, Chemicals,
Plastics, Electroplating, Fly Ash,
Glass, Detergents, Dry Cells
3Socially not
responsible
Safety Matches, Textiles,
Leather
4
Examples of Technology Related Problems MSME face
• Electronic Weighing based Fruit Sorting System• Plastic Waste Sorting System for Five Types of Plastics• Biodegradable Plastics based on Natural materials• Composite Materials for Sports Goods• An apparatus and technology for the manufacture of
fused welding fluxes• Self Guided – Electro gas Welding Machine –
Indigenously developed • A process of forward and backward feeding of cold wire
addition technique in submerged Arc welding• Multiple Panel Cutting technology• Multiple colour Printing technology
Foundries – Indian Scenario
Total number of foundries
6,000 clustered in 47 locations • 95% MSME Units, only 5% large• Prevalence of traditional and obsolete technology leading to
higher energy consumption• Poor melting technology in the foundry enterprises leading to
high consumption of coke and higher carbon emissions.• Problems of solid waste disposal • Issues relating to health and safety of workers
• Technology up-gradation can save nearly 75,000 tonnes coke per annum• Improved practices of Occupational Health and Safety not only help improve the
work environment, but also ensure direct business gains.
The Foundry Sector Molten Metal Pouring in a bucket
Molten Metal to Moulds
Mould Preparation Casted and Machined Parts
Process
Job Hazard Watch this man.. Hand - eye
Watch this man.. Hand - eye
Under Factories Act 1948, foundries have been classified as Hazardous Industry
Business Case…..
Total no of workers required: 07 (2 for filling the basket, 3
for loading pig iron and scrap)
Total no of workers required: 03(1 for making the small size of scrap, 1 for loading material in the charger, 1 as helper) Drudgery chances also
minimized
Reduction in Labour Cost;
Increased Savings
Business Case…..
Commercial use of Waste
Slag- waste product for Foundry Industry
Slag utilized as raw material for Brick making
Business Case…..
Material Movement
Manual Material HandlingMaterial movement through
trolleys
Introduction of single Trolley includes an expenditure of Rs 2,000 and saved average 2 man days cost on daily basis i.e. Rs 800
Implementation Framework
1. Many MSMEs are aware of symptoms but not remedy & location
Step 1: Educate Step 2: Identify exact technology needs
2. Most MSMEs not well versed with process of Technology Transfer
Step 3: Identify firms with similar needs Step 4: Create a network of
like-minded firms
3. S&T communities do not have outreach to industries Step 5: Identify
the Supplier/ Provider Step 6: Negotiate with supplier/ Provider Step
7: Organise service providers for transfer process
4. Marketability is a major challenge in front of S&T communities – Step
8: Business Case Development & Presentation
5. Enterprises are excited given the solution but require handhold
support Step 9: Engage a Linker between Provider & Seekers
6. Enterprises need support for non-technology areas viz. Financing,
Labour training etc. Step 10: Role of facilitating agency
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