Agenda 30 SCM Vol 2

i

AGENDA

for

30th STEERING COMMITTEE MEETING

of

MICRO & SMALL ENTERPRISES -

CLUSTER DEVELOPMENT PROGRAM (MSE-CDP)

(Vol.-I)

DATE : 21 March 2012

TIME : 11:00 a.m.

VENUE : Room No. 701, Nirman Bhawan

New Delhi

MINISTRY OF MICRO, SMALL & MEDIUM ENTERPRISES,

OFFICE OF DEVELOPMENT COMMISSIONER (MSME)

NIRMAN BHAWAN, NEW DELHI

ii

INDEX

Agenda Description Page

Gujarat

30.1 CFC for Ceramic Industry Cluster, Trajpar, Tal. Morbi, Rajkot 1

30.2 CFC for Brass and Copper Utensils Cluster, Dabhoi, Vadodara 6

30.3 CFC for Embroidery, Garmenting & Zari Cluster, Kareli, Tal. Olpad, Surat 8

West Bengal

30.4 Setting up of CFC for Cashew Processing Cluster, Contai, Purba Medinipur 10

30.5 Setting up of CFC for Clay Pottery Cluster, Siliguri 15

30.6 Setting up of CFC for Wood Carving Cluster, Burdwan 20

30.7 Setting up of CFC for Foundry (Metal Casting) Cluster, Howrah 22

30.8 Setting up of CFC for Metal Spare Parts Cluster, Howrah 24

30.9 Setting up of CFC for Plastic Products Cluster, Umarpur, Murshidabad 26

30.10 Setting up of CFC for Balarampur Shellac Manufacturing Cluster, Purulia 28

30.11 Setting up of CFC for Brass & Bell Metal, Nadia 30

30.12 Setting up of CFC for Gold & Silver Jewellery Cluster, Nadia 32

30.13 Setting up of CFC for Rice Mill Cluster, Burdwan, 34

30.14 Setting up of CFC for Hosiery Cluster, Sovabazar, Kolkata 36

30.15 Soft Interventions in Agarbati Works Cluster of Baruipur, South 24 Parganas 38

30.16 Soft Interventions in Brass Metal Cluster in Bali, Goghat , Hooghly 41

30.17 Soft Interventions in Clay Doll and Terracotta Cluster of Ghurni, Nadia 45

30.18 Soft Interventions in Earthen Pottery Cluster of Chaltaberia, North 24

Parganas

47

30.19 Soft Interventions in Fireworks Cluster, Baruipur 50

30.20 Soft Interventions in Gems and Jewellery cluster of Domjur, Howrah 53

30.21 Soft Interventions in Beekeeping, Honey Extracting and Processing Cluster of

Darjeeling

55

30.22 Soft Interventions in Imitation Ornaments Cluster of Domjur, Howrah 58

30.23 Soft Interventions in Shoe and Chappal Making Cluster of Digha-Daspara-

Chotojagulia

62

30.24 Soft Interventions in Shoe making Cluster of Janbazar, Kolkata 65

30.25 Soft Interventions in Optical Lens Grinding Cluster of Munsirhat 68

30.26 Soft Interventions in Refractory Brick Cluster of Kulti, Salanpur, Burdwan 70

30.27 Soft Interventions in Rubber Moulding Cluster of Raghudevpur, Howrah 72

30.28 Soft Interventions in Silk Printing Cluster of Serampore 75

30.29 Soft Interventions in Woolen Product Manufacturing Cluster of

Darjeeling

78

30.30 Soft Interventions in Artificial Ornaments and Gift Items Cluster,

Paschim Medinipur North 24 Parganas, West Bengal.

81

30.31 Soft Interventions in Zari Embroidary Cluster of Sankrail, Howrah 83

30.32 Soft Interventions in Bamboo Craft Cluster, Baduria, North 24

Parganas

86

Rajasthan

30.33 Upgradation of Infrastructure at Industrial Area Phase-I & II, Balotra 88

30.34 Infrastructure Development (ID) centre at Industrial Area, Sri Ganganagar 90

iii

30.35 Other proposals 93

Haryana

30.36 Setting up of CFC for Home Furnishing Cluster, Panipat 94

30.37 DSR in 4 Clusters

i) Auto Components Cluster, Faridabad

ii) Printing & Packaging Cluster, Karnal

iii) Printing & Packaging Cluster, Rai, Sonepat iv) Stainless steel utensils cluster, Kundli

101

30.38 Soft Interventions in Paint & Chemical Industry Cluster, Karnal 107

30.39 Soft Interventions in Pharmaceutical Cluster, Karnal 109

Himachal Pradesh

30.40 Soft Interventions in Furniture and Fabrication Cluster, Rampur 111

30.41 DSR for Iron & Steel Product Cluster, Damtal, Kangra 113

30.42 DSR for Wooden Furniture Cluster, Hamirpur 115

Punjab

30.43 Soft Interventions in Oil Expeller & Parts Manufacturing Cluster, Ludhiana 117

30.44 Soft Interventions in Steel Re-rolling Cluster, Mandi Govindgarh 120

30.45 DSR in Agriculture Implements Cluster, Malout, Distt. Mukatsar 123

30.46 DSR in Agriculture Implements Cluster, Talwanti Bhai, – Ferozepur 124

30.47 DSR in Hand Tools Manufacturers Cluster, Ludhiana 125

30.48 DSR in Tractors Parts Manufacturers Cluster, Hoshiarpur 126

30.49 DSR in Tractor Parts Manufacturers Cluster, Ludhiana 127

30.50 DSR in Wire Drawing Cluster, Ludhiana 128

30.51 DSR in Foundry & General Engg. Cluster, Phagwara Kapurthala 129

30.52 Soft Interventions in Printing & Packaging Cluster, Ludhiana 130

30.53 Up-gradation of Infrastructure Facilities at Focal Point, Ludhiana 132

Kerala

30.54 Setting up of CFC (Tool Room and Training Centre) in Agricultural Implements Cluster, Shornur

134

30.55 Setting up of CFC for Soft Toy Cluster, Kottayam 140

30.56 Setting up of CFC for Printers Cluster, Kannur 142

Andhra Pradesh

30.57 Extension of time limit for submission of DPRs for setting up of 7 Infrastructure Development (ID) centres

147


Bihar

30.59 DSR in Agarbati Manufacturing Cluster at District Gaya 149

iv

Agenda No. 30.1: Setting up of CFC for Ceramic Industry Cluster, Trajpar, Tal. Morbi,

Distt. Rajkot

Industries Commissionrate, Govt. of Gujarat has submitted a proposal for setting up of CFC in

Ceramic Industry Cluster, Trajpar, Tal. Morbi, Distt. Rajkot, Gujarat. Salient features of the

cluster and the proposal are as follows:

1. Basic Information of Cluster

2. Information about Proposed CFC

Description As per proposal Remarks, if any

a. Location of CFC Trajpar, Tal. Morbi, Distt.

Rajkot, Gujarat.

SIDBI appraisal mentions that SPV has already identified

land and building which is

Name of the cluster Ceramic Industry Cluster

Location of Cluster Trajpar, Tal. Morbi, Distt. Rajkot, Gujarat.

Products of the cluster

Sanitary ware, Glazed Tiles, Floor Tiles, Vitrified Tiles,

Refractories, Frit, Ceramic Stain, Grinding Media, Wall Tiles Body Making (spray drier), Third Firing decoration, Roofing

tiles.

No. of Enterprises

including break up (micro, small, medium)

(P-278/c)

597 Nos.

(Micro – 150, Small – 297 and Medium – 150)

Turnover (Rs in crore) for

the last five years (P-279/c)

2006-07 – Rs. 3200

2007-08 – Rs. 3550 2008-09 – Rs. 4000

2009-10 – Rs. 4500 2010-11 – Rs. 5500

Exports (Rs in crore) for the last five years (P-279/c)

2006-07 – Rs. 1120 2007-08 – Rs. 1243

2008-09 – Rs. 1400 2009-10 – Rs. 1575

2010-11 – Rs. 1925

Employment in Cluster 2000 Nos.

Technological Details Units are engaged in manufacturing of wall tiles, sanitary wares

etc. with low level of technology. There is no standardization of

raw material.

Whether DS conducted and

validated.

Yes, the DSR was validated in the meeting of SPV M/s Shri

Morbi Cera-lab co-operative society Ltd held on dt. 2.6.2011. The

validation workshop was conducted by Assistant Director,

MSME-DI, Ahmedabad.

Main findings of DSR No proper testing facility which results in poor quality of inputs

raw material as well as finished goods.

Main Problems of cluster • Low level of modernization and technology up gradation.

• Inadequate of training for workers.

• Non availability of standard raw material.

• Difficulties in testing at local level and low demand in

local market.

• High rejection rate.

v

centrally located at Trajpar

Char Rasta, NH8A, Morbi.

b. Land for CFC

i. Weather land acquired

ii. Title is in name of

iii. Valuation and its basis

iv. Land is sufficient

v. Change of land use

vi. If on lease, duration of lease

. Whether lease is legally

tenable

SPV have made deed of

bargain.

Not applicable.

Rs.28.8+1.2 lakh proposed.

No.

Information not available

N.A.

N.A.

SPV has made deed of

bargain for 07 shops (G & F

floor). Total area-139.04

sq.mts. which seems to be

inadequate area for a CFC.

c. Total Building area (sq ft) 139.04 Sq. mtrs

d. Rate of construction of

building

Not applicable.

e. Main facilities proposed Testing lab, Training

f. Prod. capacity of CFC 23160 samples per year

g. Major Outputs /

Deliverables of CFC,

Projected performance of

the cluster after proposed intervention (in terms of

production, export/domestic sales and direct/indirect

employment, etc.)

Proper testing facility for

raw materials and finished

goods, the industry can

serve customers with better products and it can easily

compete with other players in the domestic as well as

international market.

Projected outcomes should

be quantified in terms of

turnover, production,

employment, export etc. with

time limits.

h. Pollution clearance required

or not

---- Consent of pollution control

department required as per

local by-laws.

i. Man power in CFC (p-

290/c)

20 nos.

j. Revenue generation

mechanism for sustainability

of assets (service/user

charges to be levied, any

other-to be specified)

Revenue is proposed from

service charges towards

testing.

---

k. Estimated net profit for 1st

& 2nd

year.

1st year – Rs. 70.26 lakh

2nd

year- Rs. 67.25 lakh

---

3. Information about SPV


a. Name and address

(P-25/c)

M/s. Shree Morbi Cera Lab Co-

operative Society Ltd., C-10/12,

Hari Chamber, Trajpar Char Rasta, N.H. No. 8-A, Tal. Morbi, Dist.-

Rajkot, Gujarat

----

b. Nature of SPV

(company or Society or Trust) ( P– 25/c)

Co operative Society

c. Name of the state Govt. and MSME officials in

Information not given. Provision in byelaws

should be made for

vi

SPV inclusion of one official

from State Govt. and

MSME.

d. Date of formation of

SPV (P– 25/c)

6th

October, 2010 --

e. Number of members (P-

274-276 /c)

59 nos. (details available of 55

members only)

f. Bye laws or MA and

AoA submitted

Yes

g. Authorized share capital

(P-274/c)

Rs. 15.00 lakh + Rs. 77.87 lakh

member deposit

h. Paid up capital as on

1.9.2011 (P-274/c)

Rs. 4.05 lakh

i. Shareholding Pattern (P-

274/c)

Given None of member has more

than 10% of in the equity capital of the SPV.

j. Commitment letter for

contribution (p-199/c)

State Govt. has confirmed

contribution to project vide letter

dated 26.08.11.

SPV commitment

required.

k. SPV specific A/c (P-246

of corr.)

SPV M/s Morbi Cera-lab co-

operative society Ltd has opened Account with HDFC Bank, Morbi

– Gujarat (A/c No. 03071450000086)

l. Trust building of SPV,

Previous track record of

co-operative initiatives pursued by SPV

members need to be highlighted with support

documentation (p-286/c)

SPV formed, SPV members have

not taken any co-operative

initiatives in the past.

m. Technical Institution Lukdhirji College of Engineer,

Morbi

--

n. CFC may be utilized by

SPV members as also

others in a cluster.

However, evidence

should be furnished with regard to SPV member

ability to utilize at least 60 per cent of installed

capacity.

Commitment furnished by the SPV.

o. (a) Power requirement

for commercial/ domestic purpose

(b) Water (c) Gas/Oil/ Other

utilities

Information not available.

4. Implementation Arrangements

Description As per prospasal Remarks, if any

vii

a. Implementation Agency Centre for Entrepreneurship

Development, Gandhinagar,

b. Implementation Period 6 months The CFC should be

operationslised within two

years from the date of final

approval.

c. Appraisal of DPR and

main recommendations

SIDBI recommended proposal. Conditions mentioned in

the appraisal should be

fulfilled by SPV at

different stages before

sanction and during project implementation.

d. Comments of Technical Division

Technical division recommended the proposal- Technical feasible

and viable subject to purchasing of machinery should be decided

by Purchase Committee.

5. Financial Analysis of CFC :

Parameter As per proposal Remarks, if any

a. BEP (Page– 47 of corrs.) 46.59% Ok

b. IRR, payback period (P-49 of corrs.) 13.51%, 7 years & 7.62

months

c. DSCR Not applicable

d. Return on Capital employed (ROCE) ---

e. NPV Positive IRR is 13.51, and

hence NPV will be

positive at 10%

discount rate.

f. DER ---

g. Sensitivity Analysis Positive

h. Working capital (In-principle

sanction of loan from a bank, if

applicable arrangement made)

Information not given.

6. Project Cost:

(Rs. in lakh)

S.

No

Particulars Amount

1. Land including development and building 30.00

2. Machineries & Equipments

(i) Imported Machinery 290.68

(ii) Indigenous Machinery 106.96

3. Misc. fixed assets 20.92

4. Preliminary & Preoperative Exp. 15.00*

5. Margin for working capital 1.13

Total cost of project 464.69

* Should be 2% of the Project Cost.

viii

7. Means of Finance (Corr. Page– 95 of file): (Rs. in lakh)

Particulars %age Amount

1. Grant-in-aid from Govt. of India 65.31 303.49

2. Grant-in-aid from Govt. of Gujarat 14.49 67.36

3. SPV contribution (Equity share capital +

Members fee)

20.20 93.84

Total 100.00 464.69

8. Plant and Machinery: Annexure - I

9 Shortcomings

• Land documents (CFC is proposed to be set up in Shops)

• Projected outcomes in quantified terms

• Commitment regarding contribution by SPV

10. Proposal for the Steering Committee: Cluster division recommends the proposal for

‘In-principle’ approval so that complete proposal is submitted by the State Government within 6 months, failing which the proposal shall be dropped. Steering Committee may consider the

proposal for setting up of Common Facility Centre (CFC) for Ceramic Industry Cluster, Trajpar, Tal. Morbi, Distt. Rajkot, Gujarat to accord in-principle approval.

ix

Agenda No. 30.2: Setting up of CFC for Brass and Copper Utensils Cluster, Dabhoi,

Vadodara

Jt. Commissioner of Industries (Salt/Tex), Industries Commissionerate, Govt. of Gujarat has

submitted a proposal for interventions in Brass and Copper Utensils Cluster, Dabhoi, District

Vadodara, Gujarat. Salient features of the cluster/ proposal are as follows:

1. Name of the cluster Brass and Copper Utensils Cluster

2. Location Dabhoi, District Vadodara, Gujarat

3. Products Brass and Copper Utensils

4. Age of the cluster Information not available

5. No. of Units Information not available

6. Type of units Information not available

7. Existence of

Association / NGO


8. Formation of SPV Yes, M/s Shree Ram Vasan Industries Cluster Association,

Dabhoi

9. Employment Only employment generation of proposed project given i.e.

500 nos.

10. Turnover / Export Information not available

11. Implementing

Agency


12. Problems of the units

in industrial estate

(p-6 of corrs.)

• To handle utensil for labour job or any addition or improvement in design or quality or shape members are

facing transportation problems due to narrow streets and

roads in the city for preparing vessels in its design and

changes in shape and quality.

• Problems for purchase of raw materials i.e. scarp and its

storage facility.

• Problems in making ingots out of scrap are difficult due

to purchase in little quantity due to individuality and

make ingots out of scarps is costlier.

• Difficulties facing like R&D laboratory or testing

laboratory therefore benefits of new technology are not

enjoyed.

• Difficulties are faced to create common branding and

market development activities for utensils of brass and

copper.

13. Recommendations in

the Diagnostic Study

Report

Diagnostic Study is not received.

14. Need for CFC Need of CFC is not supported by DS.

15. Cost of the project

S. No. Particulars Amount

(Rs. in lakh)

1. Land & its Development 65.00

2. Building 185.00

3. Plant & Machinery 165.00

4. Electrification (including

solar lights)

15.00

5. Working capital 107.72

x

Total 537.72

16 Means of finance Member’s contribution - Rs. 172.72 lakh

Loan from Co.-bank - Rs. 150.00 lakh

State Govt - Rs. 215.00 lakh

Total - Rs. 537.72 lakh

17 Facilities to be

created in the CFC

(p-10-11 of corrs.)

• Common Testing laboratory

• Storage facilities for raw materials (scrap)

• Common Processing Centre (Rolling Mill, Bending

machines, Power Press, Buffing machine, Cutting

machine, Welding machine etc.)

2. Shortcomings

• SIDBI appraisal

• Clarification regarding Govt. of Gujarat sanction,

• Clarification regarding working capital


‘In-principle’ approval so that complete proposal is submitted by the State Government within 6

months, failing which the proposal shall be dropped. Steering Committee may consider the

proposal for in-principle approval for setting up of CFC in Brass and Copper Utensils Cluster,

Dabhoi, District Vadodara, Gujarat.

xi

Agenda Item No. 30.3 Setting up of CFC for Embroidery, Garmenting & Zari Cluster,

Kareli, Tal. Olpad, Surat

Industries Commissionrate, Govt. of Gujarat has submitted a proposal for in-principle approval

for setting up of CFC in Embroidery, Garmenting & Zari Cluster, Kareli, Tal. Olpad, District

Surat, Gujarat. Salient features of the cluster and the proposal are as follows:

1. Name of the cluster Embroidery, Garmenting & Zari Cluster

2. Location Village Kareli, Taluka Olpad, District Surat, Gujarat

3. Products Shirts, trousures, Jeans, Coat, etc. with Embroidery and Zari

Works

4. Age of the

cluster/Industrial

Estate


5. No. of Units 815 units (50 units formed consortium for cluster development)


7. Existence of

Association / NGO

Surat Art silk Cloth Manufacturers Association

8. Formation of SPV Yes, M/s Sunrise Integrated Textile Park Ltd.,

9. Employment 3855 nos.

10. Turnover / Export Rs 9408 cr/ Information not available

11. Implementing

Agency


12. Problems of the units

in industrial estate

Infrastructure problems, lack of supporting facilities, high

cost of energy, old and obsolete machinery, lack of

manpower training, lack of awareness on technology, lack of

funding by financial institute etc.



Report

Diagnostic Study has been received from SPV. SIDBI

appraisal and State Govt recommendations are still awaited.

14. Need for CFC Need of CFC has been identified.

15. Cost of the project (Rs. in lakh)

Particulars Amount

1. Land & Site Development 29.33

2. Building 153.00


4. Preliminary & pre-operative

expenses

42.00

5. Operating capital 14.95

Total 1607.38

16 Means of finance Govt. of India - Rs. 1050.00 lakh

Govt. of Gujarat - Rs. 230.00 lakh SPV - Rs. 327.38 lakh


17 Facilities to be

created in the CFC • Testing Centre

• Training Centre

xii

• Common Production Centre

• CETP

• Solid Waste Management

• Basic Amenities

2. Shortcomings:

• SIDBI appraisal and State Govt recommendations

3. Proposal for the Steering Committee: Cluster division recommends the proposal

for ‘In-principle’ approval so that complete proposal is submitted by the State Government

within 6 months, failing which the proposal shall be dropped. Steering Committee may

consider the proposal of in-principle approval for setting up of CFC in Embroidery,

Garmenting & Zari Cluster, Kareli, Tal. Olpad, Surat, Gujarat.

xiii

Agenda No. 30.4 Setting up of CFC in Proposal to set up Common Facility Centre

(CFC) in Cashew Processing Cluster, Contai, Purba Medinipur

Directorate of MSSE, Govt. of West Bengal has submitted a proposal for setting up of

CFC in Cashew Processing Cluster, Contai, Purba Medinipur, West Bengal. Salient features of the


1 Basic Information of Cluster

a. Name of the cluster Cashew Processing Cluster

b. Location of Cluster/ spread

of cluster

Contai, Purba Medinipur

c. Products of the cluster Cashew kernel of different grades

d. No. of Enterprises

including break up (micro,

small, medium)

250 units (Micro – 15, Medium – 35 and Small – 200)

e. Turnover (Rs in crore) for

the last five years

Rs. 137.00 crore.

f. Exports (Rs in crore) for

the last five years

Not available

g. Employment in Cluster Not available

h. Technological Details Processing technology is primitive. Most of operations

are done manually with only a crude machine for

roasting. It results in lot of broken products. CNSL

remains unrecovered and in absence of scientific

packaging, shelf life of product is reduced. The net result is low margin.

Proposed CFC will minimize broken cashew, improve shelf life, and recover valuable CNSL as by product,

resulting in more profit. While steam cooking, drying, product packaging,

CNSL recovery will be done mechanically, shelling / cutting of raw cashew, peeling, sorting and grading will

be done manually.

i. Whether DS conducted Yes.

j. Main findings of DSR • Low yield of cashew kernels i.e. around 22% only.

• Improper gradation leads to loss of revenue.

• Lack of awareness and measure of quality

assurance.

• Infestation measures not up to the desired level by

a number of units.

• Packaging is not up to desired level.

• Requirement of huge working capital.

• Inadequate credit flow for working capital.

k. Main Problems of cluster 1. Absence of market intelligence for institutional and

new product sale.

2. Lack of marketing skill. 3. Lack of exposure of different market segments in

the national and international arena. 4. Lack of awareness of improved technology.

5. No increase in cashew cultivation during last few

xiv

years in the state.

6. High raw material cost due to procurement of

major quantities outside the state.

2 Information about Proposed CFC


a. Location of CFC Mouza,Ten gunia, VPO

Contai, Purba Medinipur.

b. Land for CFC

i. Weather land acquired Yes. Deed No. 6022/09 for Rs.

1423132 (74-9 decimal) and Deed

No. 6021/09 for Rs. 1190329 (60

decimal)

ii. Title is in name of ‘Contai Cashew Industries

Limited’.

iii. Valuation and its basis Market value.

iv. Land is sufficient Yes

v. Change of land use Not available.

vi. If on lease, duration of

lease

Not applicable.

vii. Whether lease is

legally tenable

Not applicable.

c. Total Building area (sq ft) 3,000 sqm. Shed

Administrative Building 120 sqm. Other constructions – 95 sqm.

d. Rate of construction of building

3,000 sqm. Shed @ 7,000/- per sqm.

Administrative Building 120 sqm@ 9,000/- per sqm.

Other constructions – 95 sqm @

7,000/- per sqm.

e. Major Outputs of CFC,


cluster after setting up of

CFC

Before setting

up of CFC

After (?)

years of CFC

Production (Rs in cr) 10-40 bags per

day for each

unit (1 bag =

80 kg)

Export (Rs in cr) Not available.

Employment (nos) Not available.

Others like no of ISO,

etc

f. Pollution clearance required or not

Yes.

xv

g. Main facilities proposed a) Centralized Mechanized

Processing facility for raw

cashew for production of

cashew kernels of different

grades as finished product and

Cashew Nut Shell Liquid

(CNSL) as by- product.

b) Semi mechanical process has

been proposed to be followed

for processing of raw cashew nut. While steam cooking,

drawing, product packaging, CNSL recovery will be done

mechanically, shelling/cutting of raw cashew, peeling, sorting

and grading of cashew kernels will be done manually.

h. Prod capacity of CFC 24 TPD (Raw Cashew Processing) 6 TPD (CSNL)

On two shift basis.

i. Man power in CFC 42 nos. of persons.

j. Revenue mechanism for

sustainability of CFC (by

user charges, etc)

Rs. 648.00 lakh – Processing of

raw cashewnut.

Packing in pouches

Packaging in tin containers

Sale of CSNL.


& 2nd

year.

1ST Year – Rs. 5.45 lakh

2nd

Year – Rs. 135.48 lakh

3 Information about SPV


a. Name and address Contai Cashew Industries Limited.

Vill – Alipur, P.O. Tengunia, Dist

– Purba Medinipur, Contai –

721401 (WB)

b. Nature of SPV (company or

Society or Trust)

Limited Company.

c. Name of the state Govt and

MSME officials in SPV Not available.

d. Date of formation of SPV 19th December 2008.

e. Number of MSE Member

Units

180 nos.

f. Bye laws or MoA and AoA

submitted

Yes.

g. Authorized share capital Authorized share capital of the

company is Rs. 1,00,00,000/-

divided into 10,00,000 equity

shares of Rs. 10/- each.

h. Shareholding Pattern 180 nos. of members contributed

@ of Rs. 20,000/- each.

i. Commitment letter for Received on stamp paper dated

xvi

contribution 28.06.11.

j. SPV specific A/c State Bank of Contai, A/c no.-

31448468786

k. Trust building of SPV,

Previous track record of co-

operative initiatives pursued

by SPV members with documentation

Soft interventions in this cluster

has been taken up by State Govt.

earlier under funding support of

MSE-CDP.

l. Technical Institution WEBCON, Kolkata

m. CFC may be utilised by SPV

members as also others in a

cluster. Evidence for SPV

members’ ability to utilise at least 60% of installed capacity

Not available.

n. Utilities requirement

Power 160 KVA

Water 22 Kl. Per day.

Gas/Oil/ Other

4 Project Cost:

(Rs. in lakh)

Particulars Amount

1 Land 14.50

2 Site Development 33.01

3 Civil Cost 250.55

4 Plant & Machinery/equipment 420.37

4 Misc. fixed assets 67.75

5 Preliminary & Pre-operative expenses 23.65*

6 Contingency @ 2% on civil cost 5.01

7 Contingency @ 5% on P&M and MFAs 24.41

7 Margin money for Working Capital 16.44

Total 855.69

Say 856.00

* may be restricted to 2% of project cost.

5. Means of Finance:

(Rs. in lakh)


1. SPV contribution 10.04 86.00


3. Grant-in-aid from Govt. of WB. 27.81 238.00

Total 100.00 856.00

6 Financial Analysis of CFC:


a. BEP 32.33%

b. IRR 17.46%

c. DSCR N/A

d. Return on Capital employed 35.89%

xvii

(ROCE)

e. NPV Rs. 506.74 lakh

f. DER N/A

g. Sensitivity Analysis Holds Good.

7. Plant and Machinery As per list enclosed

8 Implementation Arrangements


a Implementation Agency West Bengal State Export Promotion

Society (WBSEPS), Kolkata.

b Commitment of SPV

contribution

Received.

c Commitment of State

Government contribution

Govt. of West Bengal confirmation

received.

d Commitment of Loans

(Working capital and/ or term loan)

Not available.

e Implementation Period 18 months

f Appraisal of DPR and


SIDBI has appraised the DPR and has

informed that the setting up of proposed CFC is economically viable and support

worthy.

g Comments of Technical

Division

Food Division has informed that

proposed interventions is complete manufacturing activity and is not

complementary process, there is no activity of manufacturing left for cluster

units to perform in their premises. Some

more observations of Food Division

have been sent to state govt. for their

comments.

Technical

Division has not supported the

proposal. Cluster .

9 Shortcomings:

i. Food Division has not supported the proposal

ii. Major outputs of CFC not given

iii. Data like employment, export, utilization of at least 60% of installed capacity of facilities

by SPV members, name of stat official in SPV, in-principle approval of working loan, etc.

not given.

10. Proposal for the Steering Committee: Cluster division recommends the proposal to set

up Common Facility Centre (CFC) in Cashew Processing Cluster, Contai, Purba Medinipur may be rejected.

xviii

Agenda No. 30.5 Proposal to set up Common Facility Centre (CFC) for Clay Pottery

Cluster, Siliguri

Department of MSSE, Government of West Bengal has submitted a proposal for setting up

of CFC in Clay Pottery Cluster, Siliguri, West Bengal. Salient features of the cluster and the

proposal are as follows:


a. Name of the cluster Clay Pottery Cluster


of cluster

Matigara, Siliguri in Darjeeling of West Bengal.

c. Products of the cluster Clay pottery



small, medium)

130 units.

(All are micro enterprise)

e. Turnover for the last five

years

2005- 06 Rs. 3.00 crore (approx.).

2006-07 Rs. 3.75 crore (approx.)

2007-08 Rs. 4.00 crore (approx.)


the last five years

Negligible for the last 3 financial years.

g. Employment in Cluster 700 nos.

h. Technological Details The entire production process is labour intensive and

manual and productivity is very low.


j. Main findings of DSR • Organizing meeting with the actors.

• Organizing cluster vision.

• Study in understanding the present manufacturing process & isolate the weak point.

• Workshop on modern technology.

• Network building.

• Training on diversification as a strategic opinion

(design development)

• Expose to national market through seminar &

workshop.

• Training on modern technology

• Value chain analysis.

• Establishing Common Facility Centre for marketing & Furnace.

k. Main Problems of cluster • The entire production process is labour intensive

and productivity is rather low. All these factors

affect adversely on the quality of products and accounts for the low rate of return on investment.

• In order to improve upon the productivity it is

necessary to introduce ceramic machinery which

will reduce the human drudgery and at the same

time will improve upon the quality of products.

• There is also an opportunity for diversification of

product range through introduction of different

ceramic fabrication procedure and development of glazed articles particularly glazed table wares and

xix

art wares utilizing locally available raw materials.


Description As per proposal Remarks, if

any

a. Location of CFC Near Siliguri railway station.

b. Land for CFC

i. Weather land acquired SIDBI has informed in its appraisal

report that land has been identified

and transfer of land is in process.

Land

documents are

required.






lease

vii. Whether lease is legally

tenable

c. Total Building area (sq ft) 9950 sqft..


building

@ of Rs.345 per sqft


Projected performance of cluster after setting up of CFC

Before setting up of

CFC

After …

years of CFC

Production (Rs in

cr)

130 MT. 175 MT

Export (Rs in cr) Nil 0.25

Employment (nos) 700 nos. 750 nos.

Others like no of

ISO, etc

- -

f. Pollution clearance required

or not

Yes.

g. Main facilities proposed • A full scale production unit in

semi-commercial scale to produce

normal un-glazed art wares and

planters.

• Design facility to enable the

artisans to get creative designs and preserving the same in the archive.

• Testing facility of the raw

materials as well as the products.

• R&D input for development of

new product or for modifying the

existing products.

• Training Centre for imparting

training on different aspects i.e.

fabrication procedure, designing

of articles, improving firing

practices, testing of products etc.

xx

h. Man power in CFC

37 nos.

i. Revenue mechanism for

sustainability of CFC (by user

charges, etc)

Revenue Generation at 70% Capacity

Utilization per annum. Rs. 84.00 lakh

to be generated by way of production

of engraved /glazed work, clay mix

preparation, firing /glazing charges,

testing, designing etc.

j. Estimated net profit for 1st &

2nd year. 1

st Year – 15,03, 948/-

2nd Year – 17,49,327/-



a. Name and address Matigara Paul para Industrial Cluster Co-operative Society

Ltd., Vill – Matigara, Siliguri in Darjeeling District, West

Bengal.


Society or Trust)

Society Limited.


MSME officials in SPV

Not available.

d. Date of formation of SPV 5th June 2009


Units

50 nos.

f. Bye laws or MA and AoA

submitted

Yes.

g. Authorized share capital Rs. 100,00,000/-

h. Shareholding Pattern Not available. Required

i. Commitment letter for

contribution

Received.

j. SPV specific A/c Not available. Required

k. Trust building of SPV, Previous track record of co-

operative initiatives pursued by SPV members with

documentation

Earlier soft interventions in the cluster have been taken up

by State Govt. through DIC.

l. Technical Institution CGCRI, Kolkata.

m. CFC may be utilised by SPV members as also others in a

cluster. Evidence FOR SPV members’ ability to utilise at

least 60% of installed capacity

Not available. Required


Power 3 H.P

Water NA

Gas/Oil/ Other 50000

4 Project Cost:

(Rs. in lakh)

xxi

Particulars Amount

1 Land and its development 0.00

2 Building 34.25

3 Plant & Machinery 106.83


5 Preliminary & Pre-operative expenses, maximum 2% of project cost

4.50*

6 Contingency (2% building and 5% on plant and machinery) 5.34


Total 161.59

* to be restricted to 2% of project cost.


(Rs. in lakh)

Particulars Amount

1. SPV contribution 16.16

2. Grant-in-aid from Govt. of India 127.34

3. Grant-in-aid from Govt. of WB. 18.09

Total 161.59



a. BEP 37.58%

b. IRR 13.67%

c. DSCR -

d. Return on Capital employed

(ROCE)

56.65%

e. NPV 25.56%

f. DER -

g. Sensitivity Analysis ------

7. Plant and Machinery - Annexure



a. Implementation Agency West Bengal Export

Promotion Society

(WBEPS), Kolkata.

b. Commitment of SPV contribution Received.

c. Commitment of State Government contribution

Received.

d. Commitment of Loans (Working capital and/ or term loan)

Not available.

e. Implementation Period 18 months.

f. Appraisal of DPR and main

recommendations

DPR has been appraised

by SIDBI and has concluded that project for

setting up of CFC is economically viable and

xxii

technically feasible.

g. Comments of Technical Division • The total area is not adequate to install

five component of CFC as mentioned in

the DPR.

• Service user charges which are to be

paid by the potters are not indicated in

terms of MT/KG. Where as it is

reported in no of orders which is not

defined properly.

• The proposed shuttle kiln having

volume 5 m3 is also not sufficient to

fired/ baked the items of all the potters.

• A member of the SPV an amount of Rs.

78000/- would contribute against the

total share amounting Rs. 16.15 lakh of

the SPV. According to this statement

only 20-21 potters would be SPV

members.

9 Shortcoming:

i. Land documents

ii. Shareholding Pattern with list of member units, Name of State Govt official in SPV

iii. Project specific account

iv. Details of 60% capacity utilization of CFC facilities, by SPV members

10. Proposal for the Steering Committee: Cluster division recommends the proposal for ‘In-

principle’ approval so that complete proposal is submitted by the State Government within 6 months, failing which the proposal shall be dropped. Steering Committee may approve In-

principle the setting up of CFC in Clay Pottery Cluster, Siliguri.

xxiii

Agenda No. 30.6 Proposal for In-Principle approval for setting up of Common Facility Centre

for Wood Carving Cluster, Burdwan

Government of West Bengal has submitted a proposal for In-Principle approval for setting up of

CFC in Wood Carving Cluster, Burdwan, West Bengal. Salient features of the cluster and the


1. Name of the cluster

Wood Carving Cluster

2. Location Natungram, Burdwan, West Bengal

3. Products Wood Carving products & Novelty Items & Furniture

4. Age of the cluster 200 Yrs.

5. No. of Units 82

6. Type of units Micro Units

7. Existence of Association /

NGO

NGO & Self Help Group in the local area

8. Recommendation in the DSR Design Development, Product Diversification, linkage

with buyers, establishment of raw materials testing centre

& tools library & bank, creation of CFC with modern

machinery

9. Soft Interventions in the

cluster

Completed Design Dev. Trg., Exposure visit, artisan

card, health insurance scheme, Janashree Bima Yojana,

Demonstration on Modern Machinery, Computer

Training

10. Formation of SPV SPV has been formed in the name of Swami Janaki Das

Nutangram Wood Carving Artisans Industrial Co-Operative Society Limited.

11. Employment 200

12. Turnover Rs. 0.97 Crore

13. Implementing Agency Directorate of Micro & Small Scale Enterprises, West Bengal

14. Problems of the cluster Use of traditional hand tools, low productivity, lack of design as per market requirement, inability to access

outer market etc.

15. Need for CFC Skill Upgradation, capacity building, design

development, etc.

16. Cost of the

project

(Rs. in lakh)

Particulars

Land & Site development 0.75

Building & other civil construction 17.00

Plant & Machinery 15.73

Misc. Fixed Assets

(Office Machinery, furniture, fixture etc.)

13.90

Contingencies @5% on items under Sl. No. 3 0.79

Preliminary & Pre Operative Expenses 2.50

Margin Money for working capital 1.03

Total 51.70

17. Proposed

Means of

Finance

Particulars %age Amount(Rs. in

lakh)

xxiv


2. Grant-in-aid from Govt. of

India

65.66 33.95


WB

24.30 12.56

Total 51.70

Shortcomings

i. List of SPV members with their contribution is not available. ii. Project specification account is not opened up in scheduled A Bank.

Proposal for consideration of the Steering Committee:- Cluster division recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State

Government within 6 months, failing which the proposal shall be dropped. The Committee

may consider the proposal for In-Principle approval for setting up of CFC in Wood Carving

Cluster, Natungram, Burdwan.

xxv

Agenda No. 30.7 Proposal for In-Principle approval for setting up of Common Facility

Centre for Foundry (Metal Casting) Cluster, Howrah, West Bengal


CFC in Foundry (Metal Casting) Cluster, Howrah, West Bengal. Salient features of the cluster and

the proposal are as follows:


Metal Casting (Foundry) Cluster

2. Location Liluah, Ghusuri, Salkia, Santragachi, Bellilious Road,

Dasnagar, Baltikuri under Howrah Municipal Corpn.

area

3. Products a) Industrial Product: CI casting items such as Rly.

Components and spares, engg. & mechanical

components and spares (e.g. sluice valves, ball valves

components) (b) Domestic products: CI casting house

hold items such as sanitary fittings, hand pump, and

parts and CI pan.


5. No. of Units 320

6. Type of units 90% Micro Units


NGO

Yes, Howrah Foundry Association

8. Recommendation in the DSR Develop capability of the cluster to perform as leader

actor in the domestic as well as global market adopting a realistic and flexible action plan with proper thrust on

technology upgradation, marketing, networking, improvement in infrastructure including CFC and

modernization – thus making a socially sustainable / environment sustainable development model of metal

casting (foundry) cluster.


cluster

Completed awareness prog., trust building, environment

and energy saving prog., exposure visit, trade fair participation etc.

10. Formation of SPV Howrah Foundry Development Cluster

11. Employment 8000

12. Turnover Rs. 3500 Crore

13. Implementing Agency Directorate of Micro & Small Scale Enterprises

14. Problems of the cluster i) Absence of up graded technology in Mfg. practices

(ii) Lack of quality consciousness in product. (iii) Lack

of innovative marketing strategy for existence in the

competitive market. (iv) Low end product range.

15. Need for CFC i) Quality metal and prototype development (ii)

Chemical, physical and mechanical analyses and testing

(iii) Casting / welding defect analyses including NDT

(iv) Quality assessment of moulding / core-sand (v)

Pollution Control Measures (vi) CAD / CAM

facilities(vii) Dev. Of human resources

xxvi

16. Cost of the

project

Particulars Total (Rs.

in lakh)

1. Land & Site development 5.00

2. Building & other civil construction 180.10


4. Misc. Fixed Assets (Office

Machinery, furniture, fixture etc.)

20.00

5. Contingencies @5% on items under

Sl. No. 3

17.72

6. Preliminary & Pre Operative

Expenses

15.65

7. Margin Money for working capital 0.91

Total 501.83

17. Proposed

Means of

Finance

Particulars %age Amount(Rs.

in lakh)

1. SPV contribution 10% 50.18


India

59% 296.08

3. Grant-in-aid from Govt. of West Bengal

31% 155.57

Total 501.83

What are the shortcomings

i. List of SPV members with their contribution not available. ii. Cost of project has been changed from Rs.822.56 lacs to Rs.501.83 lacs requiring revised

appraisal from SIDBI.

iii. Cost of land has been taken on lease basis requiring clarification as earlier it was shown on purchase basis.

Proposal for consideration of the Steering Committee:- Cluster division recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State

Government within 6 months, failing which the proposal shall be dropped. The Committee may consider the proposal for In-Principle approval for setting up of CFC in Foundry

(Metal Casting) Cluster, Howrah, West Bengal.

xxvii

Agenda No.30.8 Proposal for In-Principle approval for setting up of Common Facility

Centre for Metal Spare Parts Cluster, Howrah


CFC in Metal Spare Parts Cluster, Howrah, West Bengal. Salient features of the cluster and the



Metal Spare Parts Cluster

2. Location Mansinghapur, Hantal, Sadatpur, Bargachia, Patihal, in

and around Jagatballavpur in Howrah

3. Products Mechanical Sector- Automobiles, Steel Plant

machineries, Defence Factories, Locomotives & Engg.

Goods. Electrical Sector- Electrical / power

transmission, industries machinery, electrical component

etc.

4. Age of the cluster More than 50 Yrs.

5. No. of Units 900



NGO

Yes, Jagatballavpur Gramin Khudra Kutir Shilpo Unnyan

Samity

8. Recommendation in the DSR Setting up of CFC to render services for business

development, skill & managerial power development,

R&D testing facilities, vendor development Etc.


cluster

Vendor development Programme, Trust Building

programmes, Programmes on Pollution Control

Measures, Exposure visits, Awareness Prog. On energy audit & environment Prog. Etc.

10. Formation of SPV Bargachia Cluster of Metal Products Manufacturers

11. Employment 5000



14. Problems of the cluster (i) Lack of age old designs and in accessibility to wider market and method of Mfg. practices & process not

compatible with present technology oriented Mfg. process. (ii) Product of this cluster is found to be

qualitatively low. (iii) Backdated in design not in tune

with the test of present consumers and thus loss the

competitive edge and expected market.

15. Need for CFC (i) This cluster is very much meant for the Mfg. of

various type of complicate shaped metallic component.

Such component can be produced with adequate

productivity only with the help of modernized machines

like automatic/semi automatic cap stain lathe machine,

CNC wire cutting machines for operating such machines,

the operators and machinists need to be specially trained.

Proposed CFC can provide such Trg. Facilities to the

interested S/H and the operators.

xxviii

16. Cost of the

project

Particulars Total Cost

(Rs. in lakh)

1. Land & Site development To be provided by

GoWB

2. Building & other civil

construction

23.00


4. Support Equipment & Misc.

Fixed Assets (Office Machinery,

furniture, fixture etc.)

9.10


Expenses

8.00

6. Margin Money for working

capital

8.15

Total 462.35

17. Proposed

Means of

Finance


lakh)

1. SPV contribution 10 46.23


India

90 416.12

Total 462.35


i. Land documents not available.

ii. Complete specification of the machinery has been requested by the Technical Division and is yet to be received from State Government.

iii. List of SPV members with their contribution not available.

Proposal for consideration of the Steering Committee:- Cluster division recommends the

proposal for ‘In-principle’ approval so that complete proposal is submitted by the State

Government within 6 months, failing which the proposal shall be dropped. The Committee may

consider the proposal for In-Principle approval for setting up of CFC in Metal Spare Parts Cluster,

Howrah, West Bengal.

xxix


Centre for Plastic Products Cluster, Umarpur, Murshidabad, West Bengal


CFC in Plastic Products Cluster, Murshidabad, West Bengal. Salient features of the cluster and the



Plastic Products Cluster

2. Location Vill.- Umarpur under Raghunathganj-I Block,

Murshidabad, West Bengal

3. Products Plastic Products

4. Age of the cluster 30Yrs.

5. No. of Units 56



NGO

Yes, Association

8. Recommendation in the DSR Design as per their creativity and CAD facility, archive

facility for designs, accurate tooling as per designs, high

class polishing system, better product range with quality,

higher volume of product and quality control and benefits

of standardized products as envisaged by the CFC


cluster

Completed Trg., awareness Prog., exposure visit, vendor

development etc.

10. Formation of SPV The Umarpur Plastic Shilpa Samabaya Samity Ltd.

11. Employment 500



14. Problems of the cluster Up gradation of technology, design development, Testing facility, quality awareness etc.

15. Need for CFC The CAD centre of the CFC will enable the S/H to create new and creative designs for the household plastic items

with the aid of 3D modeling services. The design finalize through the CAD technology can be transfer to the CNC

machines for suitable model making using modern CAM technology. A state of the art tool room in the CFC would

make moulds with the help of CNC machines. Hard Chrome plating would also be done, CFC would also

provide modern Trg. Services to the S/H to equip them

with the upgraded Mfg. Technology required for

production of modern value added plastic items.

xxx

16. Cost of the

project

Particulars (Rs. In

lakh)

1. Land & Site development 04.20


construction

16.00


4. Support Equipments & Misc.

Fixed Assets (Office Machinery,


77.76


Expenses

09.10


capital

06.40

Total 368.33

17. Proposed

Means of

Finance


(Rs. in

lakh)

1. SPV contribution 10 % 36.83


India

90 % 331.50

Total 368.33



ii. List of SPV members with their contribution not available.



Government within 6 months, failing which the proposal shall be dropped. The Committee may consider the proposal for In-Principle approval for setting up of CFC in Plastic Products

Cluster, Murshidabad

xxxi

Agenda No. 30.10: Proposal for In-Principle approval for setting up of Common Facility

Centre for Balarampur Shellac Manufacturing Cluster, Purulia, West Bengal


CFC in Shellac Manufacturing Cluster, Purulia, West Bengal. Salient features of the cluster and



Balarampur Shellac Manufacturing Cluster

2. Location Balarampur, Purulia, West Bengal

3. Products Shellac, Bleached Lac, Aleuritic Acid products


5. No. of Units 123



NGO

Yes, Association

8. Recommendation in the DSR CFC for machine made Shellac, Aleuritic Acid & de-

waxed Bleached Lac


cluster

Completed Awareness Prog. Exposure visit, market

development Prog., TRg. Prog on value added product

10. Formation of SPV Balarampur Shellac Cluster Shilpa Samabaya Samity

Ltd.

11. Employment 1639

12. Turnover Rs.262.53 Crore

13. Implementing Agency Directorate of Micro & Small Scale Enterprises, West

Bengal

14. Problems of the cluster Low productivity & low value addition, inferior product

quality, high process loss & high production cost

15. Need for CFC Higher value addition, mechanism of production

process, economic viability for installation of machines

for common use, enhancing productivity and export of

product

16. Cost of the

project

Sl. Particulars Total Cost

(Rs. in lakh)

1. Land Govt. Land

2. Site development 5.00


construction

334.53



Machinery, furniture, fixture etc.)

71.00

6. Contingencies @3% on Civil

cost, P&M & MFA

15.54


Expenses

4.00


capital

88.12

Total 625.71

17. Proposed

Means of

xxxii

Finance Particulars %age Amount(Rs. in

lakh)



India

39.70 248.40


West Bengal

50.30 314.74

Total 625.71

Shortcomings


Proposal for consideration of the Steering Committee: - Cluster division recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State


consider the proposal for In-Principle approval for setting up of CFC in Shellac Manufacturing

Cluster, Purulia

xxxiii

Agenda No. 30.11: Proposal for In-Principle approval for setting up of Common Facility

Centre for Brass & Bell Metal, Nadia, West Bengal

Government of West Bengal has submitted a proposal for approval for setting up of CFC in

Brass & Bell Metal, Nadia, West Bengal. Salient features of the cluster and the proposal are as

follows:

1. Name of the cluster Brass & Bell Metal

2. Location Nadia, West Bengal.

3. Products House hold Items, Decorative items, Idols, Hinges

etc.

4. Age of the cluster Age old.

5. No. of Units 150 units

6. Type of units Micro units.


NGO

Dharmada – Murogachha – Sadhanpara Brass and Bell Metal Artisans’ Cluster Co-operative Industrial

Society Ltd.

8. Recommendation in the

DSR

DSR recommends for setting up of CFC in the

cluster.


cluster

Soft interventions have been taken up earlier by DIC,

Nadia.

10. Formation of SPV Dharmada – Murogachha – Sadhanpara Brass and

Bell Metal Artisans’ Cluster Co-operative Industrial

Society Ltd.,

11. Employment 640 nos.

12. Turnover Rs. 5.00 crore.

13. Implementing Agency Directorate of MSSE, Govt. of West Bengal.

14. Problems of the cluster The artisans of the cluster suffer from lack of economies of scale, productivity, innovative, designs,

proper quality of conventional product and newer value added items.

15. Need for CFC The CFC will enhance the artisan’s productivity and competitiveness.

16. Cost of the

project

(Rs. in lakh)


1. Land & site development 32.29

2. Building / Civil construction 63.00


5. Misc. Fixed Assets 2.50

6. Contingencies 7.92


Expenses

9.74


capital (25% of working capital)

8.98

Total 269.83

xxxiv

17. Proposed

Means of

Finance

Particulars Amount(Rs. in

lakh)



India

157.08


West Bengal

85.77

Total 269.83

Shortcomings

(i) Land documents related to procurement of land by the SPV. (ii) Project Specific account of SPV.

(iii) Approved Building plan for CFC

(iii) List of SPV members with names of units as well as individual

contribution.

(iv) Technical Division has requested for complete specification of plant & machinery from State Govt.

Proposal for consideration of the Steering Committee:- Cluster division

recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State Government within 6 months, failing which the proposal shall

be dropped. Steering Committee may consider ‘In-principle’ approval for the CFC.

xxxv


Centre for Gold & Silver Jewellery Cluster, Nadia, West Bengal


CFC in Gold & Silver jewellery Cluster, Ranaghat, Nadia, West Bengal. Salient features of the



Gold & Silver Jewellery Cluster

2. Location Ranaghat, Hijuli, Jafarnagar Dist.-Nadia, West Bengal

3. Products Gold & Silver Jewellery ornaments


5. No. of Units 700



NGO

Yes, Association

8. Recommendation in the DSR Technological upgradation in the Mfg. Process as well as

introduction of quality assurance system as Hallmarking

System with modern computer based design facility

which suits the present customers need.


cluster

Completed awareness Prog., Trg. Prog., Exposure visit,

Participation in different Trade Fair at National level.

10. Formation of SPV Ranaghat Sub Division Gold & Silver Jewellery

Artisans’ Cluster Co-Operative Industrial Society Ltd.

11. Employment 2100

12. Turnover Rs. 343.00 Crores

13. Implementing Agency Directorate of Micro & Small Scale Enterprises,

Government of West Bengal

14. Problems of the cluster Absence of modern technology, no scope for design

development, non existence of quality assurance system, and collective marketing approach.

15. Need for CFC Installation of Hallmarking centre, Design development through CAD-CAM facility. Different Jewellery Mfg.

technology and Tool Room facilities.

16. Cost of the

project


(Rs. in lakh)

1. Land 0.00

2. Site development 0.00


construction

02.00


5. Misc. Fixed Assets (Office Machinery, furniture, fixture

etc.)

59.16

6. Contingencies @3% on

Civil cost, P&M & MFA

0.00


Expenses

09.61


capital

0.00

xxxvi

Total 306.49

17. Proposed

Means of

Finance


lakh)



India

273.71


West Bengal

1.80

Total 306.49


I. List of members of SPV and their contribution is not available. II. Lease Agreement of land not clear as it is in local language.




consider the proposal for In-Principle approval for setting up of CFC in Gold & Silver

Jewellery Cluster, Nadia.

xxxvii


Centre for Rice Mill Cluster, Burdwan, West Bengal

Directorate of MSSE, Government of West Bengal has submitted a proposal for approval for

setting up of CFC in Rice Mill Cluster, Burdwan, West Bengal. Salient features of the cluster

and the proposal are as follows:

1. Name of the cluster Rice Mill Cluster

2. Location Burdwan, West Bengal.

3. Products Rice


5. No. of Units 133 units in the SSI Category ( Sadar block)

6. Type of units Medium – 5 and Small - 128

7. Existence of

Association / NGO

Burdwan District Rice Mills Cluster Association

8. Recommendation in

the DSR

Creation of testing facility for Rice Bran and other by

products.

Creation of an organized paddy procurement system.

9. Soft Interventions in

the cluster

Soft interventions have been taken up earlier by DIC,

Burdwan.

10. Formation of SPV Burdwan District Rice Mills Cluster Association -

Section 25 company incorporated on 23.02.2009.

11. Employment Not available.

12. Turnover Rs. 800 crore.

13. Implementing Agency Directorate of MSSE, Govt. of West Bengal.

14. Problems of the cluster Poor linkage with R & D Institutions, High unit cost of power, High cost of raw materials, irregular availability

of consumables and stores.

15. Need for CFC The high content of silica to the extent of around 80-

90% in rice husk ash offers it as a potential raw material for production of various value added silica

based products such as Sodium Silicate, Silica gel, precipitated silica etc. As such the availability of

commercially viable technologies for conversion of rice husk ash into silica based value added products

have been explored.

Production of edible variety of Rice bran oil has

gained importance in Burdwan and its adjoining

districts in recent time in view of its health friendly

characteristics. The low level of SFA and high level of

PUFA in edible grade of rice bran oil are the typical

characteristics of rice bran oil. The accurate and fast

production of test results plays an important role in the

valuation of the products.

xxxviii

16. Cost of the

project


(Rs. in lakh)

1. Land 27.70

2 Site development 38.55

2. Building / Civil construction 115.49




7. Preliminary & Pre Operative Expenses

59.80

8. Margin Money for working capital

1.70

Total 947.98

17. Proposed

Means of

Finance


lakh)



India

54 536.37

3. Grant-in-aid from Govt. of West Bengal

36 316.81

Total 100 947.98


(i) Land documents not available.

(ii) Contribution from SPV members not available.

(iii) Specification and quotation of the machinery is not available.

(iv) Confirmation from IISC – Bangalore to transfer technology for setting

up of commercial level plant not available.

(v) Name of the process licensor for the technology and chargers for the

licensor not available.

(vi) Project specific account of SPV

Proposal for consideration of the Steering Committee:- Cluster division

recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State Government within 6 months, failing which the proposal shall

be dropped. Steering Committee may consider the proposal of in-principle approval for setting up of CFC.

xxxix

Agenda No. 30.14 Proposal for In-Principle approval for setting up of Common

Facility Centre for Hosiery Cluster, Sovabazar, Kolkata, West Bengal

Government of West Bengal has submitted a proposal for In-Principle approval for setting

up of CFC in Hosiery Cluster, Kolkata, West Bengal. Salient features of the cluster and the



Hosiery Cluster

2. Location Sovabazar, Ultadanga, B.T. Road, Kolkata

3. Products Hosiery Fabrics


5. No. of Units 375

6. Type of units Micro & Small & Medium Units


NGO

Yes, The Bengal Hosiery Mfg. Association.

8. Recommendation in the

DSR

Technological Upgradation, quality upgradation,

market development, testing facility


cluster

Completed Awareness Prog,. Exposure Visit,

Workshop on Machinery & Technology etc.

10. Formation of SPV Bengal Hosiery & Knitware Entrepreneurs Association

11. Employment 4185

12. Turnover Rs. 14000 Lakh

13. Implementing Agency Directorate of Micro & Small Scale Enterprises,

Government of West Bengal.

14. Problems of the cluster Technology, raw materials, Trg., Marketing, capacity

building.

15. Need for CFC Power generation for emergency use of the CFC, Boiler

for steam generation, water treatment plant, Testing

Lab., Development and trade centre, raw materials and

consumable stores.

xl


I. Land documents not available. II. Project Specific account is not available.

III. List of SPV members and their contribution is not available.

Proposal for consideration of the Steering Committee:- The Committee may

consider the proposal for In-Principle approval for setting up of CFC in Hosiery

Cluster, Sovabazar, Kolkata.

16. Cost of the

project

Sl. Particulars Total Cost (Rs. in lakh)

1. Land 152.58

2. Site development


construction

168.83




10.00

6. Contingencies @3% on

Civil cost, P&M & MFA

17.45


Expenses

25.00


capital

10.40

Total 591.52

17. Proposed

Means of

Finance


in lakh)



India

40 238.59


West Bengal

50 293.78

Total 100 591.52

xli

Agenda No.30.15: Soft Interventions in Agarbati Works Cluster of Baruipur, South

24 Parganas

1. Brief information of Cluster

Name of the

Cluster

Agarbati Works Cluster of Baruipur

Location The cluster is predominant at Phooltala, Shakari, Pukur, Ramnagar, Kurali,

Chhayani, Kakgaru, Uttarbhag, Paruldha and Baruipur block of South 24

Parganas.

Products Raw Agarbati Stick (90 percent) and Perfumed Agarbati stick (10 percent)

Technological

details, pollution, etc.

The cluster mostly produces raw (non-perfumed) agarbatti sticks of

bamboo. Bamboos are cut by hand into small and fine sticks. Required bamboo is mostly available in Tirpura. Often, due to flooding supply of

sticks get choaked. The sticks are sorted and sometimes those are also coloured. One important issue is that often there will be need for drying of

sticks.

“Gola Masala” - combination of charcoal powder, powder of jiggat bark

and plywood dust is used for making agarbati. The stick is then sun dried.

At present there are only 2 pulverisers in the entire cluster. A high capacity

common pulveriser along with appropriate sieving machine will help

prepare appropriate quality of pastes.

There is no training organization in the cluster.

Preparation of perfumed sticks goes through three more steps, an area

which is almost absent from the cluster.

Age of cluster 70 years

No. of units a. MSEs: 112

b. No. of enterprises of each category

i. Micro: 112

ii. Small: Nil

(Note: there are 12,500 household units too who are doing job work for

these 112 principal firms)

iii. Women-owned: 11 iv. Owned by SC: 65

v. Owned by ST: 4 vi. Owned by minorities: 6

c. Average yearly income of men/women of workers : Rs. 6000 to Rs. 7000 pa and unit owner : Rs. 3 lakh to Rs. 4 lakh pa.

Profiles of

units/category

Principal Firms in the Cluster

Type of Principal

Firms

No. of Micro

Units

Investment in Plant and

Machineries

Turnover (Rs crore)

Employment Generation

Micro A 15 8 to 9 lakhs (per

units)

60 22350

Micro B 20 Not Applicable 34 12925

Micro C 77 Not Applicable 40 14901

Total 112 135 50176

Turnover (per

annum)

Total turnover of the cluster including exports: Rs 135 crores approx.

Export

Employment 50,156

xlii

(direct/indirect)

Presence of

association/

NGO, contact

details

“Baruipur Agarbatti Manufacturers’ Welfare Association”.

Mr. Ashutosh Das, Secretary Mobile no. 09339701415

Main problems

of cluster • Lack of availability of bamboo sticks during rainy seasons and

difficulty in getting two important raw materials – bark of garan and

jiggat

• There is no R&D to replace jiggat as a raw material

• The industry is operating only on 10 percent of the value chain

• Training of labour force is a costly and time consuming affair.

• No laboratory to prepare perfumes or stock perfumes. Impurities in raw

materials lead to less efficient and defective raw stick preparation

• Lack of training in science of perfuming

• Severely restricted to least value added raw sticks and missing out on

growing export, wholesale, retail market of perfumed stick

• No idea of the marketing strategy if they enter into the perfumed stick

business

• Lack of water and fragrance proof packaging

• Lack of pulverisation and appropriate technology for mechanical sieving.

2. Analysis of the Proposal

Propose by Implementing Agency (IA) Comments

IA, its

experience

District Industries Centre, South 24 Paraganas

Project Cost Total: Rs. 12,20,000

Govt. of India: Rs. 10,00,000

State Govt.: Rs. 93,200

SPV/Stake holders: Rs. 1,26,800

Technical

Agency to

associated and its

expertise

• Cane and Bamboo Technology Centre (CBTC), Guwahati

• Foundation for MSME Clusters (FMC), Kolkata

• Fragrance and Flavor Development centre (FFDC),

Kannauj

• Indian Institute of Packaging (IIP), Kolkata

Outcomes Around 100 units to get benefitted through workshop on

packaging, perfuming, good manufacturing processes and exposure to MSE-CDP and schemes. 100 units to benefit

through training in fragrance preparation, raw material

handling and processing, water proof packaging, etc. Exposure

visit will do capacity building of around 40 firms directly and

the cluster indirectly through spread effect. It will also create

source for appropriate raw material procurement and improve

quality. Technology study and market study will support the

entire cluster.

Some of the expected qualified outcomes are listed as follows.

Sl.

No

.

Particulars No. of

MSEs

benefite

d

Before

Intervention

s

After

Intervention

s

xliii

i. Total Sales 15 Rs 9 crores Rs 11 crores

ii Increased

productivity

and reduced

cost

25

iii Employment 50,000 55,000

v New product 10

vi Worker

income

Rs 3,000 Rs 5,000 to

Rs 6,000

vii CFC and

waterproof

packaging

All

firms

None Initiated

Proposal for Steering Committee: Steering Committee may kindly approve the Soft

Interventions in the cluster at a total cost of Rs. 12.20 lakh for duration of 18 months with

GoI contribution of Rs. 10.00 lakh, State Govt. contribution of Rs. 0.93 lakh and the

remaining Rs. 1.27 lakh to be contributed by cluster units / association.

xliv

Agenda No.30.16 Soft Interventions in Brass Metal Cluster in Bali, Goghat, Hooghly


Name of the Cluster Brass Metal Cluster in Bali, Goghat

Location Spread over four villages, namely, Bali, Kalagachia, Udhayrajpur and

Radhaballavpur on the banks of river ‘Dwarakeswar’ in Bali Gram

Panchayet under Goghat-I Development Block of Hooghly

Products Different sizes of Pitchers (known as Ghora and Ghoti in local

language)

Technological


Cluster artisans use recycled brass scraps. Pitcher are made with two

or three dies. All these are made of clay obtained from the river nearby. Scrap of brass metal is heated in a furnace. Required quantity

of zinc is added and is heated to a temperature of about 1,050°C. The molten metal is then poured into the die by inverting the crucible.

Pitcher is buffed and polished. The process wastage makes cost of production higher by an amount of

Rs. 4/- per piece. The technical feasibility of replacing clay die with

metal die may be examined. The feasibility of sand casting as in

vogue at Moradabad may also be studied.

Pollution is an issue. No units have chimneys and exhaust fans. The

workers are inhaling smoke and metal fumes. Face, hands, legs and

eyes of workers are exposed to a very high temperature because they

don’t use any protective covers. In the buffing and scraping operations

a lot of black dust and metal particles are spread and are inhaled by workers because they do not use mask for nose and mouth.


No. of units a. Total no. of micro and small enterprises: 130


i. Micro: 130

ii. Small: Nil

iii. Women-owned: Nil

iv. Owned by SC:26

v. Owned by ST: Nil vi. Owned by minorities: Nil

c. Average yearly income of men/women of workers/unit owner : Workers: Rs 36,000 to Rs 48,000 per annum

Unit Owner: Rs 70,000 to Rs 1.5 lakh

Turnover (per annum)

Total turnover of the cluster including exports: Rs 30 crores

Export Yes

Employment

(direct/ indirect)

Around 600

Presence of

association/ NGO, contact

details

i) Bally-Anchalik Ghora Silpa Samity,

ii) Bally Anchalik Ghoti Silpa Samity iii) Bally Anchalik Mahajan Samity.

Name of the CDE : Mr. Nemai Garai, : 09332159320

Main problems

of cluster • No formally registered strong Association capable of leading the

cluster enterprises

• No networking of enterprises

xlv

• Enterprises are fully dependent upon traders

• Poor quality of raw materials used

• Artisans have no knowledge of making brass ingot from virgin metal.

• Limited market due limited products focused on rural markets,

outdated designs, heavy weight resulting in comparatively higher prices

• No product diversification made till date.

• Lack of brand image.

• No dealers network for marketing except local Mahajans

• No export

• Traditional & obsolete technology leads to high cost of production, low

productivity and low profitability

• Traditional furnace and die are used here having high depreciation

value

• No design development centre or R&D centre to support the cluster



, if any

IA, its experience

in cluster development

District Industries Centre, Hooghly

Project Cost Total Budget : Rs. 12,70,000

Government of India Rs. 10,04,000

State Government : Rs. 1,36,000 SPV/Stakeholders : Rs. 1,30,000

Some of the major Technical Agency

to be associated and its expertise

• Industry-Institute Partnership Cell (IIPC) - Jadavpur

University

• National Institute of Fashion Technology (NIFT), Kolkata

• West Bengal Consultancy Organisation Ltd. (WEBCON),

• Kolkata )

• National Metal Handicrafts Centre, Moradabad

• Research Testing & Calibration Laboratory (RTCL)

Outcomes 1. 10% of the existing principal firms by way of using 70%

capacity utilization started producing different

decorative items and other value added products.

2. At least 5 New product range of decorative and novelty

items introduced and around 20 firms started producing

those. Profit margin increased by 20 percent and

turnover by at least 10 percent of those 20 firms.

3. A Plan for Raw Material Bank of brass material

prepared

4. Plan for CFC with machinery for lacquering,

electroplating, powder coating and CAD facility for

higher value added product prepared. SPV formed and

registered.

5. A complete report on scope of technical intervention for

xlvi

enhanced productivity and quality is prepared with all

detailing of machines/ tools and methods

6. At least 40 entrepreneurs exposed to oil filed furnace

7. 20 entrepreneurs exposed to Moradabad cluster and

learnt better production techniques, management

practices. They also got ideas on different products that

can be produced in the cluster.

8. 50 young entrepreneurs and unemployed youths in the

cluster had undergone the training on enterprise

management. 10 new enterprises established by new

entrepreneurs and another 10 entrepreneurs went for

expansion generating employment for at least 50 people

9. At least 30 entrepreneurs learnt better scarping, welding,

polishing and buffing techniques. The product quality

improved and waste minimized significantly

10. In the backward linkage section net work of raw material

supplier, coal supplier formed and started supplying raw

material / coal directly to manufacturing units at

competitive price.

11. A network of machine supplier also set up within the

cluster. This network started working in such a fashion

that Mahajan’s control over the supply of raw material

and coal drastically reduced.

12. At least 5 new BDS providers linked with principal

firms for technology up gradation, design development,

productivity enhancement, and skill development.

13. One brochure of cluster products with all details and

profile of entrepreneurs prepared and circulated in

different markets. Cluster website launched and made

use by entrepreneurs

14. A complete study report prepared and potential markets

identified. A road map to target those markets with right

kind of products developed.

Some of the quantified outcomes are listed as follows.

Sl.

No.

Particulars No. of

MSEs

benefited

Before

Interventi

ons

After Interventions

Improved

capacity

utilization

10% of

the

existing

principal

firms

Quite

Low

Improved utilization

to 70% by producing

value added products.

i. Total Sales/

Turnover

20 firms Base 5 New product

introduced. Profit

xlvii

increased by 20%

and turnover by 10%

Quality 30 units Very low Better scarping,

welding, polishing

and buffing

techniques. Product

quality improved and

waste minimized

ii BDSP All units Very few At least 5 new BDS

providers linked with

principal firms for

technology up

gradation, etc.

iii New units/

Employment

generation

50 units

benefitte

d. 10

units

newly

establish

ed and

10

existing

one went

for

expansio

n.

Generated

employment to

50 people

- 50 young

entrepreneurs and

unemployed youths

in the cluster had

undergone the

training on enterprise

management. 10 new

enterprises

established by new

entrepreneurs and

another 10

entrepreneurs went

for expansion

generating

employment for at

least 50 people

Proposal for Steering Committee: Steering Committee may kindly approve the Soft Interventions in the cluster at a total cost of Rs. 12.70 lakh for duration of 18 months with

GoI contribution of Rs. 10.04 lakh, State Govt. contribution of Rs. 1.36 lakh and the remaining Rs. 1.30 lakh to be contributed by cluster units / association.

xlviii

Agenda No. 30.17 Soft Interventions in Clay Doll and Terracotta Cluster of Ghurni,

Nadia


Name of the

Cluster

Clay Doll and Terracotta Cluster, Ghurni

Location Spread over Sastitala, Natun Bazar, Palpara, Anandamayeetala, Halder

Para, Bagdipara, Sandhyapara, Nedeirpara, Bhatjagla, Gate Road of

Krishnanagar Municipality ward no. 1, 2, 3, & 4 and its adjacent villages of

Krishnanagar –1 Development Block of Nadia

Products Dolls, handmade human figure, portrait of Gods and Goddesses, fruits

vegetables, animals, flower pots, flower vases, pitchers, cut-work lamps,

water pots, musical instruments, terracotta jewelry, murals.

Technological details, pollution,

etc.

After breaking clay lumps manually and kneading, it is allowed to soak with water and then further kneaded. The process is repeated for a few days

and the mass is converted in to plastic form. The articles are then shaped by

throwing process on the potter’s wheel.

Once the green products are ready those go for firing. The current practice

is using of potter’s kiln – clamp firing. Articles are loaded in heaps which

arrests the entry of adequate air supply.

Various new forms of firing techniques are in practice. These include up-

draft kiln, down draft kiln, roller kiln, tunnel kiln, etc. Various fuels like

furnace oil, diesel, kerosene, gas, etc. However it is felt that shuttle kiln (a combination of up-draught and or down-draught kiln) along with

appropriate kiln furniture is an appropriate solution to various problems of

potters being faced at present.

Age of cluster 300 years old.



i) Micro: 675 ii) Small: Nil iii) Women-owned: These are all

household units. iv) Owned by SC: Nil v) Owned by ST: Nil vi) Owned by minorities:

Negligible c. Average yearly income of men/women of workers/unit owner :

Worker (Both men and women) Rs. 14,500-20,000 per annum Unit owner : Annual earnings is estimated at Rs 20,000, Rs 2.5 lakh and Rs 3

lakh for Micro-C, Micro-B and Micro-A respectively.

Turnover (per

annum)

Rs 20 crores

Export Yes, but negligible

Employment (direct/ indirect)

2800

Presence of association/

NGO, contact details

There is no empowered association in the cluster. The current contact person is the CDE, who has been trained in CDP.

Name of CDE : Mr. Paran Sakar Mobile no. : 09733758160

Main problems of cluster

Lack of appropriate packaging, technology (firing, colouring, raw material processing), skill of new artisan entrants, market identification and export

xlix

linkage, new product technique, process time, firing related pollution,

processing space, limited market outlet, lack of geographical identification,

high costing in processing, linkage with technical institutions, etc.



IA, its experience in

cluster development

District Industries Centre, Nadia

Project Cost Total : Rs. 11,95,000 Government of India: Rs. 9,09,000

State Government: Rs. 1,39,000 SPV/ stakeholders :Rs. 1,47,000

Some of the Technical

Agencies to be associated

and its expertise

• Central Glass and Ceramic Research Institute (CGCRI), Kolkata


• Sutra Handicrafts Private Limited, Kolkata

• Visva Bharti University, Shantiniketan , Birbhum, West Bengal

Outcomes Around 100 units to get benefitted through introduction to modern techniques, packaging system, marketing channel, awareness of CDP

and schemes. Visit to clusters will enhance knowledge of 20 firms

directly and the cluster indirectly through sharing of experiences.

Training in design development and CAD, packaging, marketing,

firing, colouring, clay treatment and participation in international

fairs will do capacity building of around 200 firms. Technology study

will support the entire cluster.

Apart from these, some of the quantified expected outcomes are

mentioned as below.

Particulars MSEs

benefited

Before After Interventions

Total Sales Cluster Rs 20 cr Rs 24 crores

Export

linkage

10 to 20 None Export linkage created

Packaging system

675 Archaic Gift packaging introduced. Long distance packaging to

reduce breakage by 5%

GI

registration

675 None Established

SPV

formation

675 Nil 1



l

Agenda No.30.18 Soft Interventions in Earthen Pottery Cluster of Chaltaberia, North 24

Parganas


Name of the

Cluster

Earthen Pottery Cluster of Chaltaberia

Location The cluster is situated at a distance of about 5-8 kms. from the Barasat-I

Development Block and 12-15 kms. from DIC North 24 Paraganas, Barasat (Dist.

H.Q.) and 30 kms. from Kolkata in the state of West Bengal.

Products Decorative Diyas, Idols of Gods & Goddess, Traditional Pottery Items like Pitcher,

Jar, Dish, Glass, Trays, Well Rings, Fancy Decorative Showpiece and Gift Items.

Technological details,

pollution, etc.

After breaking clay lumps manually and kneading, it is allowed to soak with water and then further kneaded. The process is repeated for a few days and the

mass is converted in to plastic form. The articles are then shaped by throwing process on the potter’s wheel.

Once the green products are ready those go for firing. The current practice is using of potter’s kiln – clamp firing. Articles are loaded in heaps which arrests

the entry of adequate air supply.

Various new forms of firing techniques are in practice. These include up-draft kiln,

down draft kiln, roller kiln, tunnel kiln, etc. Various fuels like furnace oil, diesel,

kerosene, gas, etc. However it is felt that shuttle kiln (a combination of up-draught

and or down-draught kiln) along with appropriate kiln furniture is an appropriate

solution to various problems of potters being faced at present.

Age of cluster The cluster is 40 years old.

No. of units Total no. units: 250

No. of enterprises of each category

i. Micro: 250

ii. Small: 0

iii. Women-owned: All these units are household units.

iv. Owned by SC: 12

v. Owned by ST: Nil

vi. Owned by minorities: 12 Average yearly income of men/women of workers/unit owner : Man worker : Rs.

14,400 to Rs. 18,000 per annum, Woman worker : Rs. 12,000 to 14,400 per annum Unit owner : Mostly Rs 40000; in few cases Rs 3 lakh to Rs 4 lakh and in 5 cases it

is Rs 8 lakh to Rs 10 lakh per annum


Rs 7.5 crores

Export No direct export

Employment 915 (Direct)



There is no association in the cluster. However, there is plan for creation of requisite consortium/SPV. The current contact person is the CDE, who has been

trained in CDP. Name of the CDE : Mr. Arindam Biswas

Mobile no. : 09433376289

Main

problems of cluster

The major problem areas are with respect to lack of appropriate packaging,

technology (firing, colouring, raw material processing), market identification and linkage, product diversification, firing related pollution, availability of raw

material, high costing in processing, absence of professional business enterprise practices, linkage with technical institutions, etc.

li



IA, its

experience

DIC, North 24 Paraganas

Project

Cost

Total: Rs. 12,45,000

Government of India: Rs. 9,65,000

State Government: Rs. 1,43,000

SPV/Private Partners: Rs. 1,37,000

Some of

the Technical

Agency to associated

and its expertise


• Central Glass and Ceramic Research Institute (CGCRI),

Kolkata


• Indian Institute of Social Welfare and Business

Management (IISWBM) – Kolkata

• Visva Bharti University, Shantiniketan Birbhum,

Outcomes Around 75 to 100 units to get benefitted through introduction to modern techniques, packaging system, marketing channel,

awareness of CDP and schemes. Visit to clusters will enhance knowledge of 10 firms directly and the cluster indirectly through

sharing of experiences. Training in design development and CAD, packaging, marketing, finance and participation in national fairs

will do capacity building of around 80 to 100 firms. Training in

technology issues will also help around 40 to 80 firms.

Technology study and market study will support the entire cluster.

Some of the quantified expected outcomes are listed below.

Sl.

No.

Particulars No. of MSEs

benefited

Before

Interve

ntions

After

Interventions

i. Total Sales 20 Rs 7.5

crores

10 per cent for

at least 20

firms

ii Market

Channels

20 Limited 3 more

iii Packaging

system

250 Archaic Gift packaging

and Long

distance

packaging

iv Value added

products

100 Limited Some

v Employmen

t generation

50 to100 915 960

vi SPV

formation

250 Nil 1

vii CFC 250 None Initiated

viii Systematized business

units

30 5 35

lii





liii

Agenda No. 30.19: Soft Interventions in Fireworks Cluster of Baruipur


Name of the

Cluster

Baruipur Fireworks Cluster

Location The cluster comprises of Champahati, Haral, Chinagram, Naridana etc under

Baruipur Development Block of South 24 Paraganas District, West Bengal

Products 1) Light Based products, like- Ground Chakkars, Flower Pots, Spearklers

Search light

etc. (70 percent of the total turnover of the cluster)

2) Sound Based products like- Rockets, Shell, Crackers etc.(30 percent of the

total turnover of the cluster)


etc.

Most of people artisans are making low cost sound emitting fire-works but due to serious stipulation of Govt. parameters it loses its market and more

than 70% of the supply to the demand of West Bengal is being catered presently by the manufacturer of Shivakashi, Tamilnadu. Though they

gradually shifted from sound emitting crackers to light crackers, but still the

quality and type is not in commensurate with the market demand.

The characteristic of the different raw-materials for Gun Powder is such that

individually these raw materials carry no hazards or risks, but after mixing, it

is inflammable and perilous in nature. As per ‘Explosive Act’, a magazine

house should be built by keeping certain barrier or gap with the other sections

of the unit.

Mechanization of different terminal process is necessary in a modern fireworks cluster.

Pollution is a major issue in the cluster.

Age of cluster More than 50 years



i. Micro: 4000

ii. Small: Nil


iv. Owned by SC: 3200 v. Owned by ST: Nil

vi. Owned by minorities: Nil c. Average yearly income of men/women of workers/unit owner :

Man worker : Rs 22,000 pa, Woman worker: Rs 16,000 pa Unit owner : Rs 45,000-Rs 60,000 pa


Rs. 42.50 crores

Export Yes

Employment

(direct/ indirect)

25,175

Presence of


details

There is one association but it is dormant. However, there is plan for

creation of requisite consortium/SPV. The current contact person is the CDE, who has been trained in CDP.

Name of the CDE : Mr. Kaushik Majumdar Mobile no. : 09330962152


1. Backwardness in Technology: Traditional process of manufacturing is used which makes the unit less competitive in regional/ national and

liv

international market.

2. Old and limited product range: In spite of changing demand, they are

continuing the old product produced in traditional way.

3. Infrastructure: Lack of adequate environmental friendly infrastructural

and high uncertainties in government regulation.

4. Product Quality: Lack of product quality awareness.

5. Poor packaging: Poor packaging methods.

6. Literacy: Lack of business sense and financial literacy.

7. Technical Institutes and BDS: No. existence of technical training

institute and specialized services on technology, marketing, etc.

Health Hazards: Lack of awareness about health hazards.



IA, its experience

District Industries Centre, South 24 Paraganas

Project Cost Total Budget : Rs. 11,40,000 Govt. of India : Rs. 9,01,000

State Government : Rs.1,09,000 SPV/Stakeholders :Rs.1,30,000

Technical Agency to be

associated

and its

expertise



• Centre for Quality Management System, Jadavpur

University, Kolkata

• Industry-Institute Partnership Cell (IIPC) - Jadavpur

University

Outcomes • One SPV formed and registered for CFC. DPR for CFC

prepared and work initiated towards the end of 18 months.

• 100 entrepreneurs sensitized to pollution control and safety measures. At least 50 out of them started practicing those in

their units and therefore pollution and health problems

minimized and safety assured in work place.

• At least 5 new products identified and units started manufacturing those, leading to increasing returns and improved

market shares.

• Skill of 160 workers upgraded.

• Product catalogue and entrepreneurs brief profile prepared and shared with traders in national and international markets.

• 40 units benefitted through creation of new market linkages in

national market. Profitability increased by 2 percent and

turnover increased by 10 to 15 percent.

• At least 40 entrepreneurs adopted advanced production methods

and went for capacity expansion to the extent of 5 to 10 percent

and created employment opportunity for at least 100

unemployed youths.

• 20 new units established giving employment to around 100 people.

• A directory of BDSPs prepared and shared with units for sustainable market promotion.

Some of the expected quantified outcomes are listed below.

SN Particulars No. of MSEs Before After Interventions

lv

benefited Interventio

ns

i. Total Sales/

profitability

/ Turnover

40 units 10 market linkages

developed in national

market. Profitability

increased by 2 percent and

turnover increased by 10 to 15 percent.

Ii Packaging system

20 percent firms

Almost not in use

New packaging system

iii New range

of products

20 units

Limited

range

At least 5 new products

iv Skill 160 Low to

average

Better production

techniques adopted

v New units

and

Employment generation

40 units

through

expansion and 20 units

newly created

- 40 units adopted advanced

production methods and

went for capacity expansion to the extent of

5 to 10 percent and created employment opportunity

for at least 100 unemployed youths.

20 new units established giving employment to

around 100 people.

vi SPV

formation

All (Direct

and indirect)

- SPV formed or CFC

vii CFC All (Direct

and indirect)

- Plan for CFC prepared and

work initiated

viii Pollution

control and health

hazards

100

entrepreneurs

Highly

affected

100 entrepreneurs

sensitized to pollution control. At least 50 started

practicing & therefore

pollution problems

minimized.




lvi

Agenda No. 30.20: Soft Interventions in Gems and Jewellery cluster of Domjur, Howrah


Name of the

Cluster

Domjur Gems and Jewellery cluster

Location The cluster is predominant within a radius of 15-20 kms. of Domjur in district

Howrah of West Bengal.

Products a) Gem studded gold ornaments b) Gold chain

c) Gold ball

Technological


For improving quality, productivity and marketing the product cost effectively

and more competitively, up-gradation of technology and quality control system (Hall Marking) is necessary for the cluster. Newer manufacturing techniques

like investment casting, holloware, chain making and stamping have developed to manufacture different shapes. Even traditional activities like wire drawing,

die making and cutting have become increasingly sophisticated and

mechanized.

Pollution angle: Some firing related pollution are prevalent in the cluster




i. Micro: 3010

ii. Small: Nil


iv. Owned by SC: 150 to 300

v. Owned by ST: Nil

vi. Owned by minorities: Nil

c. Average income of men/women of workers/unit owner : Worker: Rs 54,000

to Rs 72,000 per annum

Unit owner : Rs. 2.4 lakh to Rs 6 lakh per annum

Turnover (per

annum)

Rs 1250 crores

Export -

Employment

(direct/

indirect)

Total employment: 24000

Presence of

association/

NGO, contact

details

Name of the association is “Domjur Swarna Roupya Shilpi Samity”

Mr. Tarun Ghosh, Jt. Secretary (09830440900)

Sk. Nasir Uddin,Jt. Secretary (09836254859)

Mr. Sasthi Charan Dab, President (09830167584)

Mr. Biswanath Mukherjee, Vice President (09051720920)

Main problems

of cluster

The major problem areas are with respect to low productivity, low level of

entrepreneurial skills, limited market exposure and marketing channels, high requirement of working capital, age old technology in several operations

leading to lowered quality, health issues related to work environment, etc.


Propose by Implementing Agency (IA) Comment

s

lvii

IA, its

experience

District Industries Centre, Howrah Should be

WBEPS

Project

Cost

Total: Rs. 12,70,000

Government Of India: Rs. 9,96,000


SPV/Stakeholders: Rs. 1,51,000

Technical Agency to

be associated

and its

expertise

• Centre for Quality Management System, Jadavpur University

• Enterprise Development Institute: Kolkata

• Institute of Gemological Research (IGR-Gem Testing Lab),

Kolkata


• Sindhar Institute of Gemology (SINGEM), Kolkata

Outcomes Around 100 units to get benefitted through introduction to best manufacturing practices in various techniques including casting,

polishing, engraving, hall marking, etc., units to get benefitted through awareness of CDP and schemes. Visit to clusters and

participation in fairs will enhance knowledge and business linkage of

10 firms directly and the cluster indirectly through sharing of

experiences. Training in design development and CAD, IT,

marketing, exposure to new machinery, etc. will do capacity building of around 500 firms. Market and technology study will support the

entire cluster.

Some of the quantified outcomes are listed as follows.

Sl.

No.

Particulars No. of

MSEs

benefited

Before

Intervention

s

After

Intervention

s

i. Total Sales Cluster Rs 20 crores Rs 2 crores

Ii Market

Channel

15 2 to 3 15

Iii Improved

working condition

50

V Entrepreneurial skills

50 None Enhanced

Vi Productivity

enhanced

250 units None Cost

reduction

Vii Usage of gas

burner

50 Pollution

reduced

Vii

i

CFC and

productive

association

200 None Initiated





lviii

Agenda No.30.21: Soft Interventions in Beekeeping, Honey Extracting and Processing

Cluster of Darjeeling


Name of

Cluster

Beekeeping, Honey Extracting and Processing Cluster of Darjeeling

Location The cluster units are in villages of 10 Gram Panchayat under Phulbazar

Block in Darjeeling District of West Bengal

Products Raw honey


pollution, etc.

Traditional methods of tree trunk are still in practice in many household units in remote villages. Moreover, the units which are having modern bee

boxes are not using quality bee boxes with quality standard marks like ISI Moreover, these low quality boxes do not generate sufficient temperature

that can give optimum output. Local made bee box is heavy and its longevity is 5 years. Longevity of a

foundation sheet is on an average of 2 years.

Good quality bee boxes; advanced methods of beekeeping and honey

extraction and processing and use of good quality readily available hives

are the major pressure points for intervention in the cluster. Training can be

organized to aware the bee keepers about the present technology for

collecting pollen, royal jelly, propolish etc. Favourable climate of

Darjeeling Hill & presence of rich flora & fauna, there exist a huge

potential of growth through modern methods.

Stakeholders in the area use normal bottles for packaging honey.




i. Micro: 186

ii. Small: Nil

iii. Women-owned: 10

iv. Owned by SC: 12

v. Owned by ST: 84 vi. Owned by minorities: Nil

c. Average yearly income of men/women of workers/unit owner : All are family based units, Unit owner’s income is Rs 1 lakh to Rs 2 lakh.

Profiles of units/category

There are around 186 household units in the cluster spread over 10 Gram Panchayat under Phulbazar Block having major concentration of

beekeepers. Around 80 units are owned by people from Other Backward Caste (OBC), 84 units by people from Scheduled Tribe (ST), 12 by

Scheduled Caste (SC) people. 10 units are owned by women. On an average per unit investment in plant and machineries is Rs 5000-10,000.


Total turnover of the cluster including exports: Rs. 2.37 crores

Export Nil

Employment

(direct/indirect)

Total employment: 250 (Direct employment)

Presence of


details

There are two associations in the cluster. There is plan for creation of

requisite consortium/SPV.

Main problems 1. Largely following traditional method of beekeeping and honey

lix

of cluster processing and thereby getting low yields.

2. Lack of skill and knowledge on advanced methods of Beekeeping and

honey processing. Moreover there is no training institution near by the

cluster who can impart such skills.

3. Lack of knowledge on proper health and nutritional requirement of

honeybee

4. Lack of testing and refining facility for raw honey

5. No value added product available/ experimented as yet.


Propose by Implementing Agency (IA) Comments by

Cluster

Division

IA, its experience

District Industries Centre, Darjeeling

Project Cost Total: Rs Rs.11,70,000 Government of India: Rs. 9,35,000

State Government: Rs.1,13,000


Technical

Agency to

associated and

its expertise

• Central Bee Research and Training Institute (CBRTI), Khadi and Village Industries Commission, Pune

• Foundation for MSME Clusters (FMC): Kolkata


Outcomes • One SPV formed and registered for CFC for testing,

refining, bottling and processing facilities. A detailed project report for the CFC is ready.

• 50 entrepreneurs learnt scientific Bee keeping methods to get better quality of honey and higher yield. They also

learnt bee health management practices.

• 120 Entrepreneurs learnt scientific and attractive bottling

and packaging methods. They also learn different attractive way of bottling for tourist market and out of

them at least 30 entrepreneurs started doing the same.

• 120 entrepreneurs acquired marketing skill.

• 20 entrepreneurs exposed to best beekeeping and honey

processing practices. They also got an idea on different

value added products.

• 20 entrepreneurs through the platform of association participated in 2 identified trade fairs in the country and

got a good return. They established direct linkages with the potentials buyers/ traders. Moreover they learnt the

market preferences and the type of fast moving value

added honey market in high end market.

• A thorough study is done with clear picture on potential markets and market preferences. Potential retail chains

are also identified. A strategy road map prepared to enter

into those potential markets and link the retail chain to the

cluster.

• At least 5 new linkages established with big retail chains

in national market benefitting to at least 20 units.

• At least 5 new value added products introduced and more

lx

than 10 units started preparing that.

• Beekeeping was promoted as a part of tourist attraction in the area. New products and packages that can give a

souvenir feeling of Darjeeling was introduced and

popularised.

• A detailed study report is prepared on advanced methods

of beekeeping and the technology and equipments

required for the same to improve the quality and

productivity of honey. Also a list of machines required for testing, grading, R&D on blending and processing

techniques is prepared with all detailing

• 10 new units started in the cluster.


Sl.

No.

Particulars No. of

MSEs

benefite

d

Before

Intervention

s

After

Interventions

i Total

Sales

ii Market

Channels

20 units No retail

chain

linkage with

national

buyers

5 new linkages

developed

iii Value

added

products

10 units No value

added

products

5 new value

added products

introduced

iv Scientific

Bee

keeping

50 units Very Low Scientific

methods

adopted

v Employm

ent

generation

186 250 275


Interventions in the cluster at a total cost of Rs. 11.70 lakh for duration of 18 months with GoI contribution of Rs. 9.35 lakh, State Govt. contribution of Rs. 1.13 lakh and the


lxi

Agenda No.30.22 Soft Interventions in Imitation Ornaments Cluster of Domjur, Howrah


Name of the

Cluster

Imitation Ornaments Cluster of Domjur

Location Parbatipur, Uttar Jhapordah, Daskhin Jhapardah, Makardah-II, Narna, Begri and

proper Domjur Village area in Domjur, Howrah. Area of cluster is around 10 sq

km.

Products Aluminium bangles and earrings of around 75 different colours.

Technological

details, pollution,

etc.

The technology adopted in the cluster is traditional, yielding low returns. Being

an unorganized sector no formal R&D is being done to upgrade the process of

production. The technology used involves usage of machinery like designing machine, anodising machine etc.

There are few units engaged in anodising. These units are highly polluting and do not follow the environmental rules.

The heat treatment process is done in heat treatment chambers that are obsolete and therefore, modern methodology needs to be introduced in the cluster.

Few units that are engaged in colouring. The technology used is the traditional method of using hand held devices for spray painting.

The aesthetic designs, colour combinations that are produced with etched, engraved and electroplated techniques are able to command higher price.

Pollution angle: Yes but minimal

Age of cluster Around 60 years.

No. of units a. Total no. of micro and small enterprises: 1100 b. No. of enterprises of each category

i. Micro: 1100

ii. Small: Nil


iv. Owned by SC: 220

v. Owned by ST: Nil


c. Average yearly income of men/women of workers/unit owner:

Man worker: Rs 38,400 to Rs 48,000 per annum

Woman worker: Rs 28,800 to Rs 38,400 per annum

Unit owner’s income is around Rs 60,000 to Rs 1,00,000 per annum

Turnover (per

annum)

Total turnover of the cluster including exports: Rs 92.6 crores

Export Yes, but not very significant

Employment

(direct/ indirect)

8000

Presence of

association/

NGO, contact

details

There is no association in the cluster. However, there is plan for creation of

requisite consortium/SPV. The current contact person is the CDE, who has been

trained in CDP.

Name of the CDE : Mr. Haripada Das, Mobile no. : 09830282904

Main problems

of cluster • Human Resource: The artisans are not aware of the modern designs that are

currently in demand.

• Raw Materials: All the units purchase raw materials from local market,

where the price is not very competitive. Moreover, there is no testing

lxii

laboratory in this area to test the quality of the raw material procured.

• Marketing: Market linkages are weak and the cluster cater to only local

market. Huge potential exist in tapping new markets both spatially as well

as age and sex wise through various retail outlets.

• Production process: Production process is not scientific. All the

machineries used are age old and the methodology of production adopted is

also traditional. There are separate welding and anodizing units in the

cluster that does not comply with the environmental rules as per guideline

of pollution control board.

• Salary and Wages: Most of the workers are contractual workers and the

wages are low, Rs 800-1000 per week. This leads to migration of workers from the cluster to other states like Hyderabad, Gujarat and Mumbai. Both

education and skill level of the workers are low. They also have limited knowledge on modern design



IA, its experience

District Industries Centre, Howrah

Project Cost Total Budget : Rs. 12,00,000 Government of India : Rs. 9,52,000

State Government: Rs 1,10,000 SPV/Private Partners: Rs 1,38,000

Some of the

Technical

Agencies to

be associated

and its expertise

• Centre for Quality Management System, Jadavpur University

• Enterprise Development Institute, Kolkata

• Institute of Gemological Research (IGR-Gem Testing Lab):

National Institute of Fashion Technology (NIFT):Kolkata

• Sindhar Institute of Gemology (SINGEM), Kolkata

Outcomes • Introduction of 10 new value-added costume ornaments.

• Profitability of 10 units manufacturing these products increased by 30 percent and turnover by at least 5 percent.

• 5 new designs of national and international standard developed and at least 5 new linkages established.

• 100 entrepreneurs learn techniques of better engraving, polishing

and cutting methods to produce better finished product and reduce

wastage.

• Value realization of their product increased by at least 10 percent and wastage reduced by 20 percent.

• 100 entrepreneurs exposed to advanced machines. 10 firms went for better technology and capacity expansion by at least 30 percent.

• 50 entrepreneurs acquired better managerial skills on managing business, better marketing practices, office management and record

keeping and handling clients in a more professional way. They also learnt creating brand for the products and positioning in right

markets.

• 60 units learn the right anodizing practice to reduce the

environment related risk. Posters, audio-visual tools developed and

lxiii

made available to continue the same training in other units in the

cluster.

• 50 entrepreneurs trained on better designs/ product by using CAD.

At least 20 of them started making new designs using CAD and

earned better margins for the products.

• 50 entrepreneurs learn basic skill of computer and online marketing

and at least 10 of them started advertising their products in different

portals

• One brochure of cluster products with all details and profile of

entrepreneurs prepared and circulated in different markets. Cluster website launched and made use by entrepreneurs

• A detailed study report is prepared on advanced machines for processing for improved quality and productivity. Also a list of

machines required for testing with all detailing for the CFC

prepared and submitted for funding.

• A mini raw material bank started functioning.


Sl. No.


benefited

Before Interventions

After Interventions

i. Total

Sales

10 units-

profitability

Profitability increased by

30% and turnover by at least 5 %. Value

realization of the products

increased by at least 10

percent and wastage

reduced by 20%.

ii Market

Channels

20 units Limited 5 new designs of national

and international standard

developed and at least 5

new linkages established.

iii Better

production

technique/

skill

100

entrepreneur

s

Low quality

and high

wastage

Better engraving,

polishing and cutting

methods to produce better

finished product and

reduce wastage.

iv Value added

products

At least 20 units

Limited and traditional

10 new value added costume ornaments

v Design/

Skill and marketing

50 units Entrepreneurs trained on

better designs/ product by using CAD.

vi Technolog

y and capacity

expansion

100 units Obsolete

technology

Exposure to advanced

machines. 10 firms went for better technology and

capacity expansion by at

least 30 percent.

vii Pollution 60 units - units learn the right

lxiv

anodizing practice to

reduce the environment

related risk. Posters,

audio-visual tools

developed and made

available to continue the

same training in other

units in the cluster.




lxv

Agenda No.30.23 Soft Interventions in Shoe and Chappal Making Cluster of Digha-

Daspara-Chotojagulia


Name of the

Cluster

Shoe and Chappal Making Cluster of Digha-Daspara-Chotojagulia

Location The cluster is situated at 8 kms. from Barasat, the district head quarter of North

24 paraganas under Barasat-1 development block; 25 kms. from Kolkata and

20 kms. from Kolkata airport. It includes the village Digha Daspara partly

Chotojagulia and Sikdespukuria of West Bengal.

Products • Ladies chappals both leather and non leather

• Gents chappals both leather and non leather

• Baby shoe


etc.

A quality footwear manufacturing sector requires modern stitching machine (flat bed & cylinder bed), cutting, clicking, skiving and roughing machine

and compressor for sole pressing. On the contrary, local footwear manufactures in Digha Daspara use flat bed stitching machine only.

Roughing and many other operations, which could easily be done with

machines, are done by hand.

Pollution angle: There is no pollution related major problem in the cluster.

Age of cluster Near about 60 years


i. Micro: 300

ii. Small: Nil



v. Owned by ST: 60

vi. Owned by minorities: 120

c. Average yearly income of men/women of workers/unit owner :

Man worker: Rs 42,000 per annum.

Unit owner’s income is around Rs 1,14,000- Rs 3,60,000 per annum

Turnover (per

annum)

Rs 28 crores


Employment

(direct/ indirect)

2200 (Direct and indirect)

Presence of

association/ NGO, contact details

No association


• The units generally use old and traditional method of production. No

modern machineries have been used in the cluster. Only stitching

machine and basic hand tools are used to make products here.

• Major raw materials are coming from Delhi through chain of middlemen. There is no direct link with the raw materials suppliers.

• Lack of education and entrepreneur skill of the unit owners.

• Lack of institutional /BDS linkages and no facilities of skill up gradation


lxvi


IA, its

experience

District Industries Centre, North 24 Paraganas

Project Cost a) Total Budget- Rs. 11,55,000

b) Government of India-. Rs. 9,57,000

c) State Government – Rs. 75,000 d) SPV/ Stakeholders- Rs. 1,23,000

Technical

Agency to be associated

and its expertise

• Footwear Design & Development Institute (FDDI), Kolkata

• Government College of Engineering and Leather Technology

(GCELT) - Govt of West Bengal, Kolkata

Outcomes • One SPV formed and registered for CFC. DPR for CFC prepared

and work initiated

• At least 20 firms started using advanced tools and machineries for

better production.

• 5 new products/ designs developed with the help of design expert

and later on entrepreneurs develop another 5 new designs on their own. .

• At least 10 firms started producing diversified products and therefore their turnover increased by at least 5 percent.

• 5 new market linkages established and 20 firms got benefitted

through the direct linkage with high end traders/ retail chains.

• 50 entrepreneurs learnt advanced methods of product designing,

pattern making. Value realization of their products increased by 10

percent. Some of the quantified outcomes are listed as follows.

Sl. No.


benefited

Before Interventio

ns

After Interventions

i. Total Sales/

Turnover

10 firms Diversified products.

Turnover increased by at least 5 percent.

ii Market Channels

20 units got benefitted

Limited 5 new market linkages established

iii Advanced technology

20 firms started using

Very low Advanced tools and machineries for better

production introduced and units started using

those.

iv New

Products/ Designs

20 units Limitted

product/ design

range

5 new products/ designs

developed with the help of expert and firms also

developed another 5 designs/ products on

their own

Skill

development

50

entrepreneur

s

Learnt advanced

methods of product

designing, pattern

making. Value

lxvii

realization of their

products increased by

10%.

v Employment

generation

- 2200 2700





lxviii

Agenda No.30.24: Soft Interventions in Shoe making Cluster of Janbazar, Kolkata


Name of the Cluster Shoe making cluster of Janbazar

Location Janbazar, Central Kolkata in West Bengal

Products Close type shoes; formal and sports shoes popularly known as Jackson,

Doctors sam, Darbi shoes. etc.


etc.

Processes like cutting, stitching, forma setting, lining, sole pasting, polishing etc. all are done under one roof for shoe making. Most of the units are using

basic hand tools like hammer, ‘batali’ etc. Stitching machine is not available with majority of the units. The quality of stitching is also not appreciable.

Modern machines like skiving, roughening, sole press, clicking, pasting, folding, etc. are also not available in the cluster. Use of kerosene stove in lieu

of heat chamber for sole pasting typically delineates the status of technology absorption in the cluster.

Age of cluster This shoe making cluster has evolved over a period of 100 years.


b. No. of enterprises of each category i. Micro: 120

ii. Small: Nil



v. Owned by ST: Nil



Man worker : Rs 18,000 to Rs 22,000 per annum

Unit owner’s income is around Rs 90,000 to Rs 1,20,000 per annum

Turnover (per

annum)

Around Rs 16 crore


Employment

(direct/ indirect)

1200

Presence of

association/ NGO,

contact details

There is one association in the cluster called Janbazar Leather Artisans

Industrial Cooperative Society (JLAICS). Name and contact of the president

of this association is as follows.

Name of the CDE : Mr. Munnilal Prasad

Mobile no. : 09748413210

Main problems of

cluster

Technology: The units have adopted old and traditional methods of

production. The penetration of latest technology and machinery is bare minimal. There is no modern machinery employed in this cluster. Only a few,

about 6-7 in numbers, stitching machines and 2 skiving machines are available

in the cluster.

No Direct Market Linkage: The cluster units have no direct linkage with the

market or consumer. They only supply to the middleman or traders operating

in the market. Therefore, understanding of the customer’s requirements and

their changing tastes and preference is not percolated at the manufacturer’s

level.

Demand Pattern: Shoe is a necessary consumer product and the consumption

lxix

is primarily linked to population size. However, the cluster units experience

demand fluctuations due to (i) no direct linkage with the market and

dependency on middleman/traders, (ii) shortage of working capital and (iii)

products emanating from this cluster is mainly targeted towards low-income,

price-sensitive customers and this type of customers are found to postpone

their purchase decision till the festive seasons.

Support Institution / BDS: Though Central Leather Research Institute (CLRI),

Government College of Engineering & Leather Technology (GCELT) is

located within the same city but the cluster has no linkage with these

institutions/colleges. Similarly the expertise available with the Central

Footwear Training Centre (CFTC), Budge Budge is not being utilized by the

cluster members. Moreover, the CFC run by the former Leather Development Corporation of

the Govt. of WB and the marketing outfit called Chrmaja are no longer in existence.

Thus one can argue that that the linkage with support Institutions is limited. Application of Innovative raw material:

Different variety of raw materials and consumables are generally sourced from Agra. A little initiative from units and R&D institutions in Kolkata could help

in developing new varieties of raw materials and consumables locally.



by Cluster

Division

IA, its

experience

District Industries Centre, Kolkata

Project Cost 1. Total Budget- Rs. 10,15,000

2. Government of India-. Rs. 8,13,000

3. State Government – Rs. 91,000

4. SPV/Stakeholders - Rs. 1,11,000

Technical

Agencies to

be associated

• Footwear Design & Development Institute (FDDI), Kolkata

• Government College of Engineering and Leather Technology (GCELT) - Govt of West Bengal

Outcomes Firm / Enterprise level : Introduction of Advance Machinery

• Stitching – 20 Nos

• Skiving – 5 Nos

• Sole Attaching – 2 Nos

• Heat setting conveyor – 2 Nos

• Improvement in turnover both unit and cluster level- it has

the potential to reach Rs. 20 crore.

• Bank finance – Credit linkages will be established and credit

facilities availed.

• Skill level of household entrepreneurs improved leading to

an increase in product profitability by at least 20 percent and

overall turnover by at least 10 percent.

• At least 5 new market linkages developed with the high end

buyers and linked with 25 units.

lxx

Cluster Level Out put

• Capacity building of the association leading to making them pro-

active.

• Improved competitiveness of the cluster actors.

• Skilled workforce utilizing their full capacity.

• CFC for advanced technology planned and work initiated

• Market potential explored in national and international market and

road map to target those prepared.


Sl.

No.

Particulars No. of

MSEs benefited

Before

Interventions

After Interventions

i. Turnover - Rs 16 crores Rs. 20 crore

ii Market

Channels

25 units Limited At least 5 new market

linkages with 25 units.

iii Technology 30 units Low

mechanizati

on/ inferior

technology

Introduction of Advance

Machinery.

Stitching – 20 Nos

Skiving – 5 Nos

Sole Attaching – 2 Nos

Heat setting conveyor – 2

Nos

iv Skill 40 units Low to

average skill

of many

entrepreneur

s

Skill level of household

entrepreneurs improved

leading to an increase in

product profitability by at

least 20 percent and

overall turnover by at least 10 percent.




lxxi

Agenda No. 30.25: Soft Interventions in Optical Lens Grinding Cluster of Munsirhat


Name of the

Cluster

Optical Lens Grinding Cluster, Munsirhat

Location Villages of Shankarhati, Naikulli, Narendrapur, Dhasa, Kharda-Bramhanpara,

Chaksahadat and Bardhipa, spread over an area of 4 sq kms

Products Cylindrical and spherical optical lenses made up of glass


etc.

In optical lens, the lens material, which traditionally used to be glass, has gradually moved into high quality plastics. Apart from glass, the various types of

lens material used are high index glass, plastic lens (PMMA &CR39), poly carbonate and high index plastic.

Average productivity of a labour is around 15 pairs of lens per day. For this the machinery used are of archaic nature.



b. No. of enterprises of each category i. Micro: 355

ii. Small: 0


iv. Owned by SC: Nil

v. Owned by ST: Nil

vi. Owned by minorities: 355

c. Average yearly income of men/women of workers/unit owner: Skilled workers

: Rs. 18,000 to Rs. 21,600 per annum, Semi Skilled workers : Rs. 12,000 to Rs.

14,400 per annum/Unit owners: Rs 35,000 per annum

Profiles of

units/category

The 355 odd micro units. The workers and unit owner are mostly Muslims.

Turnover (per

annum)

Total turnover of the cluster: Rs 8 crores

Export Nil

Employment

(direct/indirect)

2100



There is an association in the cluster, but it is dormant. The current contact person is the CDE, who has been trained in CDP.

Name of CDE : Mr. Prodyut Das Mobile no. : 09051405496


The major problem areas are with respect to age old first generation technology, poor productivity, difficult to get labour, laborious and long working hours,

ergonomic problems, poor finishing, extremely limited market channel, low level of education of workers, no technical institution, lack of finance, etc.


Propose by Implementing Agency (IA) Comments by

Cluster

Division

IA, its experience District Industries Centre, Howrah

lxxii

in cluster

development

Project Cost Total: Rs.11,00,000

Government of India: Rs. 8,90,000

State Government: Rs. 98,500

SPV/ Stakeholders: Rs. 1,11,500

Some of the Technical Agency

to associated and its expertise


Kolkata


• Indian Society of Ergonomics (ISE), Department of Physiology, Presidency University, Calcutta

Outcomes Around 150 units to get benefitted through introduction to modern machinery, buyers, ergonomics, awareness of CDP and

schemes. Visit to clusters and Vision Optics will enhance knowledge of 20 firms directly and the cluster indirectly

through sharing of experiences. Training in usage of modern technology, accounting, market awareness and EDP practices

will do capacity building of around 80 to 100 firms. Workshop and demonstration of semi-automatic and automatic

machinery, technology study and market study will support the

entire cluster of 300 odd units.


Sl.

No.

Particulars No. of

MSEs

benefited

Before

Interventio

ns

After

Interventions

i. Knowledge of

new technology

100 Nil Price and

sourcing

information

and benefits

ii Technology

introduced

20 to 30 Nil 20 to 30

iii Bank loan

organized

20 to 30 Very low 20 to 30

iv Turnover

increase

20 to 30 Rs 1 crore Rs 1.3 crore

v Employment

generation

50 to100 915 960

vi Enhanced wage 20 to 30 None 200 labourers

vii CFC 200 None Initiated

viii Quality

certification

(aware)

100 Nil 100




lxxiii

Agenda No.30.26 Soft Interventions in Refractory Brick Cluster of Kulti, Salanpur area of

Burdwan


Name of the

Cluster

Asansol Refractory Brick Cluster

Location Salanpur, Kulti, Baraboni, Jamuria, and Raniganj within a radius of 15-20

kms under Asansol Sub-division in Burdwan

Products Refractory Bricks, B.P.Sets & Shapes

Technological

details, pollution,

etc.

The refractory cluster is using traditional refractory manufacturing process.

Many of these units are shaping their products by hand moulding

methods. The raw materials which are available from natural mines are rarely

tested for their properties and are used on thumb rule basis. Most of the units do not have any calcinations plants for processing the raw materials.

Pollution angle: Coal based firing related pollution are visible in cluster.

Age of cluster The cluster is more than 60 years old.


i. Micro: 130 ii. Small: 20

iii. Women-owned: Nil iv. Owned by SC: Nil

v. Owned by ST: Nil vi. Owned by minorities: Nil

c. Average yearly income of men/women of workers/unit owner : Man worker– Rs. 30,000, Woman 25,000 per annum; unit owner : Rs.

5,00,000 to Rs 15,00,000 per annum.

Turnover (per

annum)

Rs 135 crores approx.

Export Nil

Employment

(direct/indirect)

Total employment: 4600 (direct) and 2200 (indirect)

Presence of

association/

NGO, contact

details

“Refractory Manufacturer’s Association, Kulti”. Contact person is

Mr. Ashok Chakraborty, General Secretary

Phone nos. 09832197099,0943463546, 09832187105

Main problems of

cluster • Unorganized market channels.

• Non-availability of quality standard in most units.

• Traditional/conventional method of production/primitive technology.

Uses of

• raw materials without testing. Low level of technological development.

• Poor managerial/entrepreneurship skill.

• Poor linkage with support institutions.

• Lack of awareness of energy efficient technology.

• Lack of product standardization.

• Absence of preventive pollution control measures.


lxxiv

Propose by Implementing Agency (IA) Comme

nts

IA, its

experience

Sub-District Industries Centre, Durgapur should

be

WBEPS

Project Cost Total : Rs. 12,40,000 Government of India: Rs. 9,81,000

State Government: Rs. 1,25,000 SPV/ Private Partners: Rs. 1,34,000

Some of the Technical

Agencies to be associated

and its expertise


Kolkata

• The Central Fuel Research Institute (CFRI), Dhanbad,

Jharkhand

• Indian Refractory Makers Association (IRMA), Kolkata

• Petroleum Conservation Research Association (PCRA), Dhakuria

Outcomes Walk through energy audit, ISO, health camps, knowledge of MSECDP and schemes, etc. will benefit around 100 firms. Study

tours to build capacity of 20 firms directly and the cluster indirectly

through dissemination. Training programmes and interaction with

industry leaders will benefit around 50 firms. Low cost pollution

control device will reduce pollution for 60 firms. Technology study

will benefit the entire cluster. SPV formation and promotion through

brochures and web will also support the cluster firms.


Sl.

No.

Particulars No. of

MSEs

benefited

Before

Intervent

ions

After Interventions

i. Turnover 40 Increased by at

least 5 percent

ii Export linkage 20 Increased by at

least 2-3 percent

iii Investment/Exp

ansion

30 Increased

v Employment

genration

4600 5100

vi ISO

certification

10 Certified




lxxv

Agenda No.30.27 Soft Interventions in Rubber Moulding Cluster of Raghudevpur,

Howrah


Name of the

Cluster

Rubber Moulding Cluster, Raghudevpur

Location Raghudevpur Gram Panchyat, Uluberia – II Block, Uluberia, Howrah

Products Various rubber products like-‘O’- Ring, Bush, Chevron, Packing, Oil Seal,

Bonded Seal, Bucket, Washer, V- Ring, V- Seal, Diaphragms, Quad Ring,

Expansion Joints, Bellows, Pads & Sheet, Mats and Rubberised Cork Sheet

Technological


Machinery used in most of the small scale units are more than 45 years old. The

cluster suffers from lack of critical infrastructure like Central Mixing Unit, Tool Room Facility, Training facility for Labour.

Pollution: Not a major problem in the cluster

Age of cluster Almost 50 years



i. Micro: 275 ii. Small: 0

iii. Women-owned: 25 iv. Owned by SC: 42

v. Owned by ST: 0 vi. Owned by minorities: 203

c. Average yearly income of men/women of workers/unit owner: Worker: Rs. 36,000 to Rs 60,000 per annum

Unit Owner: Rs. 6 lakh to Rs. 15 lakh per annum

Turnover (per

annum)

Rs.167.88 crores



3025 (Direct employment)



There is no association in the cluster. There is plan for creation of requisite consortium/SPV. The current contact person is the CDE, who has been trained in

CDP. Name of CDE is Mr. Biswajit Modak

Mobile no: 098307-37242

Main problems

of cluster

1. Financial

a. Low institutional credit facility – due to unavailable collateral security.

b. Bulk purchase of inputs for cost benefit is absent.

c. Lack of financial discipline

2. Market a. Limited market access. Over dependence on regional marketing channels.

b. Lack of institutional linkage – for the development of market, technology and

production.

c. Unhealthy price competitions among the firms

3. Production/ Technology

a. Obsolete technology owing to low productivity.

b. No quality testing facility

c. Lack of raw material mixing facility and tool room

lxxvi

d. Low value added products

e. High wastage



by Cluster

Division


cluster development

District Industries Centre, Howrah should be WBEPS

Project Cost Total: Rs. 10,70,000 Government of India: Rs. 8,16,000

State Government: Rs. 96,000 SPV/Private Partners: Rs. 1,08,000


associated and its

expertise

• Indian Rubber Institute (IRI), Kolkata

• Rubber Research Institute of India (RRII), Kottayam, Kerala

• Industry-Institute Partnership Cell (IIPC) - Jadavpur University,

Kolkata

Justification

for DSR

DSR is the result of the complete diagnostic study conducted in the

cluster to obtain a more in-depth picture to identify the following aspects of the cluster -

• Understand the socio-economic environment of the cluster

• Discuss the major issues in the cluster and also spell out the need

for common infrastructure

• Identify the most effective leverage points for intervention

• Provide a baseline for future monitoring and evaluation

• Build initial trust with and among the stakeholders

Outcomes • Value addition in the existing range of products by way of up-gradation of the technology and improved production process.

At least 3 new value added products introduced and 10 firms

started manufacturing those. Their turnover increased by at least

10 percent.

• Competitiveness in terms of productivity and quality of the

product significantly improved for at least 30 firms. These firms

started catering to high end national and international markets

and their overall market accessibility enhanced by 30 percent.

• At least 5 new product range introduced

• Employment increased by at least 20 percent

• Common Facility Centre for central mixing room, tool room

facility, quality testing, training facilities, etc initiated.

• Quality certification like ISO adopted by at least 10 firms

• Mechanism for uniform supply of quality raw materials

strengthened. At least 50 firms got direct benefits.


Sl.

No.


benefited

Before

Interventions

After

Interventions

lxxvii

i. Total Sales 10 Increased by at

least 10 percent

ii Market

Channels

10 Limited 3 more

iii Value added

products

10 Limited 3 more

iv Employment

generation

50 to100

(Indirectly)

v SPV formation At least 100 Nil 1

vii Raw material 50 units

viii Systematized

business units

30 5 35

ISO certification 10 10





lxxviii

Agenda No.30.28: Soft Interventions in Silk Printing Cluster of Serampore


Name of the

Cluster

Silk Printing Cluster of Serampore

Location 26 km north of Kolkata (Serampore and Baidyabati Municipality area as well as

in some Gram Panchayets like Rajyadharpur and Piarapur

Products Hand printed silk sarees, scarves and stoles


etc.

Technology of printing is restricted to hand block and hand screen printing.

Prevailing practice to increase production capacity is by increasing the

number of printing tables which needs more space and labour. Methods used

for mixing of colors are also not very scientific. It is always done manually

based on previous experience/word of mouth and using locally made colors

resulting in inconsistency in colors. Repeating same colour is also not

possible. Automatic or semiautomatic screen printing system may be adopted

for increasing production. Demonstration of such technology is essential.

Awareness and training on scientific colour mixing method is required for

consistency in quality. Also there is lack of appropriate usage and sourcing of

vegetable dyes.

Infrastructure: Most of the units do not have water softening and effluent

treatment plant. The units are also operating from home resulting in smoke

pollution. This is scope for common washing.

Pollution: This is a highly polluting cluster.

Age of cluster The cluster is 150 years old.



i. Micro: 199

ii. Small: 12


iv. Owned by SC: 20

v. Owned by ST: Nil

vi. Owned by minorities :Nil

c. Average yearly income of men/women of workers/unit owner: Skilled

workers – Rs. 48000 per annum

Unskilled workers : 24000 per annum

Unit owners: the earnings vary between Rs 6 lakh to Rs 7 lakh for micro, Rs 15

lakh to Rs 60 lakh per annum for medium and small unit owners.

Turnover (per

annum)

Rs 170 crores

Export Yes, around Rs 34 crores per annum

Employment

(direct/indirect)

12,000 persons

Presence of

association/

NGO, contact

details

Serampore Silk Printing Owners Welfare Association is the concerned

association. The contact person is Mr. Pradip Banik, Secretary (Mobile no.

09831060482) and Mr. Mahananda Ghosh, President

(Mobile no. 09830820628) Contact no. of Association : 09433737871

lxxix

Main problems

of cluster

The major problem areas are with respect to pollution, lack of finance due to

no NOC from PCB, market identification and linkage, poor quality raw

material, lack of design inputs, loss of sericin, lack of good quality specialized

colour, usage of vegetable colour, absence of professional business enterprise

practices, high energy usage, lack of proper processing technique, working

condition of labour, limited marketing channel, etc.



IA, its

experience

District Industries Centre, Hoogly

Should be

WBEPS

Project Cost Total: Rs. 12,60,000

Government Of India: Rs. 9,60,000



Some of the

Technical

Agencies to

associated

and its

expertise

• Business Analyst Group (BAG), Kolkata

• Sutra Handicraft Pvt. Ltd., Kolkata

• Government College of Engineering and Textile Technology,

Serampore (GCETTS), Hooghly

• The Indian Institute of Foreign Trade (IIFT), Kolkata


Outcomes Around 75 to 100 units to get benefitted through introduction to

modern techniques of sericin recovery, degumming, vegetable dyes,

ISO certification. Awareness of CDP and schemes will benefit around

100 units. Visit to clusters will enhance knowledge of 20 firms directly

and the cluster indirectly through sharing of experiences. Training in

design development and CAD, export procedures, marketing, safety,

etc. will do capacity building of around 100 firms. Technology study

and market study will support the entire cluster. Apart from these, some of the quantified expected outcomes are listed

as follows.

Sl. No.


benefited

Before Interventio

ns

After Interventions

I Employment 200 12000 14500

ii Enhanced Capacity (three

years)

50 170 crores Rs 205 crores

iii Energy audit 45 None Cost reduction

and profitability

iv Silk park 200 None Initiated

vi Market Channel 200 Local and

Export

Direct Market





lxxx

Agenda No.30.29: Soft Interventions in Woolen Product Manufacturing Cluster of

Darjeeling


Name of the

Cluster

Darjeeling Woolen Product Manufacturing Cluster

Location Household enterprises are in four areas in and around the town of Darjeeling,

namely, Rajbari (10 units), Mangalpuri (23 units), main Town (15 units) and

Mul Danra (6 units) of West Bengal

Products The major products of the cluster, in the order of volume of production are:

Sweaters (mainly for women) Baby Suits, Jackets, Jumpers (Sweaters with

hoods) and Shawls


pollution, etc.

This is an all women cluster engaged in manual knitting of various knitwear items. The women entrepreneurs should be motivated to buy, install and

operate machines for substantially increasing production. These machines are

easy to operate and hence the entrepreneurs and workers can learn to operate

the machines with a few days training.

Pollution: There is no pollution related problem in the cluster




i. Micro: 54

ii. Small: Nil

iii. Women-All 54 units

iv. Owned by SC: 5

v. Owned by ST: 10-15



Woman worker : RS 18,000 to Rs 24,000 pa

Unit owner’s income is around Rs 40,000 to Rs 150,000 pa

Turnover (per

annum)

Rs.4.21 crores

Export Nil

Employment

(direct/indirect)

504

Presence of

association/

NGO, contact

details


requisite consortium/SPV. The current contact person is the CDE, who has

been trained in CDP.

Name of the CDE : Mr. C.T. Bhutia

Mobile no. : 09434329831

Main problems

of cluster • Low volume of production due to hand knitting

• Lack of knowledge of fashion and designing trends

• No collective initiatives for purchase of raw materials, marketing, CFCs

• Lack of awareness of support schemes and services that can boost

investments for business development

• Low level of literacy

• Cascading of raw material prices due to intermediaries

• Absence of strategic BDS providers for designing, market promotion, etc.


lxxxi

Propose by Implementing Agency (IA) Commen

ts

IA, its

experience

District Industries Centre, Darjeeling

Should be

WBEPS

Project Cost Total proposed budget: Rs 10,95,000

Government of India: Rs. 9,01,500 State Government: Rs. 80,750

SPV/ Stake holders: Rs. 1,12,750

Technical

Agency to associated

and its expertise

• Foundation for MSME Clusters (FMC),Kolkata



• Enterprise Development Institute (EDI), Kolkata

Outcomes • 4 networks formed and one Cluster Association formed and registered for identified common activities.

• 40 firms inspired to go for capacity expansion.

• At least 5 firms expand production capacities with latest machines.

• At least 3 new units started.

• In-principle approval for CFC obtained.

• Increase in turnover by 10 percent for 20 firms through creation

of new designs and capacity building.

• At least 10 firms linked to 2/3 exporters.

• Appropriate marketing strategy established.


Sl.

No.

Particular

s

No. of

MSEs

benefite

d

Before

Interventi

ons

After Interventions

i. Turnover 20 units Increase in turnover

by 10% for 20 firms

through creation of

new designs and

capacity building.

ii Market

Channels

10 units No direct

linkage

with

exporter

At least 10 firms

linked to 2/3

exporters.

iii Better technolog

y

40 units - 40 firms inspired to go for capacity

expansion.

Employm

ent

Employment

increased by 10 %

SPV

formation

All - One SPV formed for

CFC

New

units

57 At least 3 new units

started.

lxxxii





lxxxiii

Agenda No.30.30 Soft Interventions in Artificial Ornaments and Gift Items

Cluster, Paschim Medinipur North 24 Parganas, West Bengal

Brief information of Cluster:

Name of the Cluster Artificial Ornaments and Gift Items Cluster

Location Paschim Medinipur.

Products Copper made artificial Jewellery and Gold made Jewellery, Bangle, ring, chain etc.

Technological details, pollution

angle, etc.

The units in the cluster are micro level and use very low level of technology for producing artificial jewelry. It is mainly labour

oriented and most of the works are done manually.

Age of cluster About 25 years old.

No. of Units 545 no

Profiles of units/

Category

All are Micro units. 60% of them are women

Turnover (per annum) Rs. 12 crore

Export Not available.

Employment (direct /

indirect)

3895 nos. (Direct – 3395 and Indirect – 500)

Presence of

association/NGO,

contact details

West Bengal Scheduled Castes, Tribes & Minority Welfare

Association, Rabindra Nagar, Midnapore, Paschim Medinipur.

Whether DSR

conducted. Main

outcomes of DSR

Yes. The DSR mentions following key areas that require strategic

interventions:

Technology up gradation Networking among cluster members

Export promotion Developing BDS

Creating new market through diversfication

Extent of Competition

for cluster

Not available.

Main Problems of

cluster • Lack of infrastructure facilities.

• Most of their units are unorganized sector.

• Poor financial support.

• Poor market linkage & marketing strategies as well as net work distribution.

• Poor technology & quality control.

• Lack of brand image.

• Poor lending and credit facility for cash flow

• Poor and unhygienic infrastructure

• Lower capacity utilization.

• Poor packing system.

• Lack of Government and institutional supports.

• Lack of storage facility.

• Lack of training and design development facilities.

• Inadequate flow of market information

Need for CFC, if any DSR recommends for CFC in the cluster containing following

facilities: Raw material bank, Design development, Training section,

Quality Control Section etc.

lxxxiv

2 Analysis of Proposal



GoI contribution of Rs. 13.34 lakh and the remaining Rs. 1.48 lakh to be contributed by

cluster units / association.

Agenda No 30.31 Soft Interventions in Zari Embroidary Cluster of Sankrail, Howrah


Proposed by Implementation Agency (IA) Comments


cluster development MSME-DI, Kolkata MSME-DI,

Kolkata has taken

up of Soft

Interventions in

other clusters also.

Activities Proposed

(Technology / Quality /

Marketing / Export /

Quality/ Design, etc.)

Trust Building, Awareness programme,

Training programme, Capacity Building,

Participation in local fare, Miscellaneous

Development Cost, Services of BDS

providers.

Whether DSR validated

by the stakeholders

Yes, validated on 2.12.11

Project Cost Project Cost : Rs. 14.82 lakh

GoI contribution : Rs. 13.34 lakh

Cluster beneficiaries: Rs. 1.48 lakh


associated & its

expertise

Govt. College of Engineering & Fashion

Designing Technology, Management

Consultant, Industrial Safety Deptt. , Govt.

of WB

Justification for undertaking Soft

Interventions

Units have scope for export, but due to poor quality of machinery, quality of products is

not export worthy. Unit owners are mostly

uneducated and are unaware of marketing

channels, pricing, and technology.

Interventions will help improve technology, quality, and designing of the products for

growth of units.

Main outcomes (before

& after) in terms of

sales, Exports,

Investment, Profitability,

Employment, ISO &

other Certification,

others

S.

No

Items for

comparison

Before

Intervention

After

Interventions

(Approx.)

1. Employment 3395 nos. 4200 nos

2. Production

Capacity

88.46 lakh 135 lakh

3. Profit Margin on production cost

13% (up to Semi-finished

products)

30% (up to Gold

plated finished

Products)

4. Turnover 12.00 crore 18.00 crore.

5. Reduction in

wastage of

Materials

15% 05%

lxxxv

Name of the

Cluster

Sankrail Zari Embroidery Cluster

Location Units are located in 5-6 gram pachyets of Sankrail - mainly concentrated in 7

villages namely Kandua, Sandhipur, Nabghara, Sulaty, Bhagatipur, Mahisgoat,

Chaturbhujkati under Kundua Gram Panchayat.

Products Zari embroidery work is primarily done mainly on Sari, Salwar Kameez, Lahenga / Ghagra, Punjabi (Kurta), Churidar, Scarves, Rakh etc.


etc.

The cluster does not use any technology per se. The main tools and implements employed here are; Hadda (Wooden frames of different sizes);Needle; Scissors;

Iron; and Weighing Scale Artisans work 10-12 hours a day during peak season. Problems of working

posture in Hadda leads to occupational hazards like problems with eye-sight, backache, spinal cord etc. Technical assistance might be sought for

modernization of Hadda which can reduce occupational hazards. Some big traders use China made computerized embroidery machines. A blend of

machine and hand embroidery work may be initiated to improve competitiveness of this cluster. This cluster also requires establishment of a

Common Facility Centre (CFC) to facilitate technology up-gradation.

However, design is an aspect, improvement on which can change the fortune of

this cluster. Training on design development, skill development can be

organized.

Pollution: Not a major problem in the cluster.

Age of cluster Around 50 – 60 years

No. of units a. Total no. of micro and small enterprises: 250 units


i. Micro: 250

ii. Small: 0

iii. Women-owned:-

iv. Owned by SC: 15

v. Owned by ST: 10

vi. Owned by minorities:


Man/woman worker : Rs.24,000 to Rs. 36,000 per annum,

Unit owner : per annum Rss24,000 to Rs 30,000 per annum for household units and Rs. 1,44,000 to Rs. 180,000 per annum for tiny units.

Turnover (per

annum)

Rs. 13.633 crores



800 persons (approximately)

Presence of

association/



requisite consortium/SPV.


• Traditional technology, low productivity

• Lack of awareness regarding modern technology

• Absence of Modern Machinery

• Absence of design development / introduction of new design

• No training on quality control

• Low standardization

lxxxvi

• Non diversification of product

• Limited production capacity

• Inadequate infrastructure

• Poor condition of working shed

• Lack of common work shed

• No linkage with technical institutions

• No linkage with BDS providers

• No direct purchase of raw material from manufactures

• Low investment capacity due to poor flow of credit from financial

institutions

• Occupational hazards like eye and spinal cod problems

• Artisans having limited exposure to market

• Poor knowledge of artisan regarding marketing

• Lean period of four months in a year

• No direct linkage with national/ global market

• Absence of market survey



IA, its

experience in

cluster

development

District Industries Centre, Howrah Should be

WBEPS

Project Cost a) Total: Rs. 11,80,000

b) Government of India: Rs. 9,55,000 c) State Government: Rs. 99,800

d) SPV/ Stakeholder: Rs. 1,25,200

Some of the

Technical Agencies to

be associated and its

expertise


• Indian Society of Ergonomics (ISE), Department of

Physiology, Presidency University,Calcutta


• West Bengal Consultancy Organisation Ltd. (WEBCON),

Kolkata

• Birla Institute of Liberal Arts and Management Sciences

,Calcutta

Outcomes • 50 artisans trained under Design Development programme

• 50 artisans acquired better skill on product development and better

designs

• 8 artisans exposed to Benchmark Cluster in Mumbai

• 20 artisans exposed to Zari Cluster at Budge Budge II, south 24 Pgs - 1 visit

• 50 artisans trained on Marketing skill and linkage facilitation.

• Marketing BDSP groomed and made available in the cluster

• Training and démonstration of CAD / CAM etcorganised for 50

artisans

• 2 artisns participated in the Exhibition Trade fair

• Training on Financial Management and hand holding for

maintaining books and accounts

• 3 to 4 new market channel created

• At least 10 new designs and 5 new products introduced

lxxxvii

• CFC for designing created

• Ergonomic condition of worker/artisan improved


Sl.

No.

Particulars No. of

MSEs

benefited

Before Interventions After

Interventions

i. Turnover Cluster Rs.13.633 crores Rs16.4 crores

Wage of the

workers

400

artisans

Rs 2500-Rs 3500 Rs. 3750-Rs

5250

ii Market

Channels

Many Limited 3-4 new market

channels

iii Improved

ergonomic

condition

Many Poor ergonomic

condition limiting

their working hour

Significantly

improved

iv Designs/

Value added

products

20 units Limited 10 new designs

and 5 new value

added products

v SPV formation

- - One SPV formed foro CFC




lxxxviii

Agenda No.30.32: Soft Interventions in Bamboo Craft Cluster, Baduria, North 24

Parganas, West Bengal.

Brief information of Cluster: The proposal was earlier placed in the 27th

meeting of Steering

Committee held on 31.05.2011. The Steering Committee was of the view that hard interventions

directly would be more appropriate and therefore soft interventions were not approved.

The details of the cluster and proposed interventions are as follows:

Name of the Cluster Bamboo Craft Cluster

Location Baduria Block under the District of 24 North Parganas.

Products Basket, Chalani, Cross bows, Kula, Khorahi, Dukula or Tukuri, Dala or

Thali, Dun or Kathi, Bamboo mats, Fish catching devices etc.


pollution angle, etc.

Due to abundant availability of raw materials, this area is famous in a

particular artisanship.


No. of Units 110 nos. micro bamboo crafts units.

Profiles of units/

Category

All units belong to SC category.

Turnover (per annum) Rs. 1.81 crore approx.

Export Nil


indirect)

537 nos.-Directly & 230 nos.-Indirectly

The 40% of the total employment is men and rest 60% are women

Presence of

association/NGO,

contact details

Basirhat Women Development Society, Basirhat

Whether DSR

conducted. Main

outcomes of DSR

Yes. Due to abundant availability of raw materials, the area is

famous in artisanship. The cluster needs various supportive activities

like waste minimization, quality control, creating awareness

regarding effective use of raw materials, new design development

and product diversification etc. Extent of Competition

for cluster

The entrepreneurs in Cluster are manufacturing different type of Mat and

diversified mat product through traditional method i.e. completely manual

type. The competition is within the cluster units.

Main Problems of

cluster � Lack of Infrastructure facilities.

� Problem in regular supply of quality raw materials.

� Lack of BDS providers.

� Lack of supporting Institution.

� No quality control method.

� Lack of CFC.

� Credit availability.

� Marketing problem. Need for CFC, if any Yes.

- Raw materials Banks.

- Design Development Section.

- Training section (Skill Development)

- Training Facility Centre

- Quality Control Section

- Different Types of machineries.

Any other information This office has received a letter dtd 5.3.12 from Director, MSME-DI,

Kolkata conveying that DC (Handicraft), Regional Office, Kolkata

has informed about interventions in this cluster which is also going on and therefore.

lxxxix


(Rs in lakh)

Proposal for Steering Committee: Office of DC (Handicrafts) is already undertaking interventions

in the cluster; the cluster division recommends that the proposal may be rejected.

Proposed by Implementation Agency (IA) Comments by Cluster

Division

IA, its experience in cluster development

MSME-DI, Kolkata

Activities Proposed


Marketing / Export / Quality/

Design, etc.)

Trust Building, Awareness programme,

Training programme, Capacity Building,

Participation in local fare, Miscellaneous

Development Cost, Services of BDS

providers, Local Travel, Local Purchase.

The proposal was earlier

placed in the 27th

meeting

of Steering Committee

held on 31.05.2011. The

Steering Committee was

of the view that hard

interventions directly

would be more

appropriate and therefore

soft interventions were

not approved.

Whether DSR validated by

the stakeholders

Yes.

Project Cost Project Cost : Rs. 19,59,000/-

GoI contribution : Rs. 17,35,500/-

Cluster beneficiaries: Rs. 2,21,500/-


associated & its expertise

Indian Institute of Packaging, NID, DC

(Handicraft) etc.

Justification for undertaking

Soft Interventions

The cluster needs various supportive

activities like waste minimization, quality

control, creating awareness regarding

effective use of raw materials, new design

development and product diversification,

Marketing & Packing support etc.

Main outcomes (before &

after) in terms of sales,

Exports, Investment,

Profitability, Employment,

ISO & other Certification,

others

• 100 nos. of units are engaged

traditionally but after functioning of

cluster development programmes

more number of units adjoining the

villages of Baduria Dev. Block will

participated in the programme.

• It is expected that there will create

more employment facilities in the cluster as SPV will market directly as

well as there will be different section in CFC etc.

• Automatically some other people near by Baduria & adjoining places will

participate in the activities of CFC for

different types of jobs.

xc

Agenda No.30.33: Proposal for Upgradation of Infrastructure facilities at Industrial Area

Phase-I & II, Balotra, Distt. Barmer, Rajasthan

1 Basic Information about Proposal:

a. Proposals received from

Whether the Proposal recommended from

the State Govt.

Rajasthan State Industrial Development &

Investment Corporation Ltd. (RIICO), Jaipur.

No

b. Location of site Phase-I & II, Balotra, Distt. Barmer is located on

NH-112, Jodhpur-Barmer Road

c. Year of setting up of Indl Estate Year 1980-81 & 1984

d. Name of agency owning industrial estate RIICO, Jaipur

e. Present arrangements of maintenance of

the industrial estate

Services charges recovered from individual

industry

f. Main Problems related to Infrastructure Drainage, road & water supply scheme

g. Whether appraised DPR received or not Not received

h. Total Area of industrial estate/ area (acre) 290.97 acres

i. Area to be upgraded (acre) 290.97 acres

j. Number and sizes of plots 365

k. Units set up 363

l. Profile of units (micro / women owned / SC, ST)

Micro units

m. Implementing Period 24 months from the date of sanction

n. Other ID projects sanctioned in same

district: year of sanction, number of plots allotted, units set up, etc.

No

o. Performance of ID projects in state This office has so far sanctioned 11 projects for setting up of new Industrial Estates. Out of

which, 9 projects have been completed and remaining projects are at various stage of

implementation. 2 existing industrial estates towards upgradation project have also been

sanctioned under MSE-CDP, which are under implementation.

2 Details about Proposal:

Description As per proposal Comments, if

any

a. Implementing Agency (IA): Rajasthan State Industrial Development

& Investment Corporation Ltd. (RIICO),

Jaipur

b. Track Record of the IA RIICO has completed 9 new ID projects

for infrastructure development.

Track record is

satisfactory.

c. Appraisal by SIDBI

(Observations and

recommendations). Attach

SIDBI report.

Yes

The proposal is considered to be support

worthy.

d. Whether sufficient facilities

available at site. (Proximity to railway stations / state

Proposed ID centre is located on NH-

112, Jodhpur-Barmer road at distance of 105 Km from Jodhpur. The area is well

xci

highways, availability of

water supply, adequate power

supply, telecom facilities,

dwelling places of workers)

connected by road and railways. The

nearest station, Balotra is about 1 km

and bus stand is 2 km from the industrial

areas.

e. Whether Zoning regulations

and non-agricultural

conversion etc complied with

The industrial conversion & allotment

done by Govt.

f. Whether State Level

Committee to coordinate and monitor progress has been

Constituted

Yes last meeting held on 12.12.2011 for

review the new ID project.

g. Whether confirmation

received form IA that it will meet the cost in excess of

approved project cost and any escalation in cost.

Yes, vide letter no. 1301 dated 12.08.11,

RIICO has confirmed that an expenditure of Rs. 828.32 lakh will be

borne by them.

h. Basis of elements of project Cost

Not given

3. Project Cost: (Rs.in lakh)

Particulars As per

Proposal

Eligible

under

MSE-CDP

a) Land development and other overhead

infrastructure

i) Cost of laying roads 406.00 200.00

ii) Water supply including overhead tanks and pump houses

174.32 110.00

iii) Drainage (Internal) 470.00 60.00

Total 1050.32 370.00

4. Means of finance: -

(Rs.in lakh)

Particulars Amount

i GoI Grant under MSE-CDP (60% of eligible

amount of Rs 370 lakh)

222.00

ii Contribution from RIICO 828.32

Total 1050.32

5. Proposal for the Consideration of the Steering Committee: Cluster division

recommends the proposal for Upgradation of Infrastructure facilities at Industrial Area Phase-I

& II, Balotra, Distt. Barmer, Rajasthan at project cost of Rs. 1050.32 lakh with GoI assistance of

Rs. 222.00 lakh. Steering Committee may consider the proposal for approval.

xcii

Agenda No. 30.34 : Proposal for setting up of Infrastructure Development (ID) centre at 13

LNP, Industrial Area, Sri Ganganagar, Rajasthan.




the State Govt.

Rajasthan State Industrial Development &

Investment Corporation Ltd. (RIICO),

Jaipur

No

b. Location of site 13 LNP, Industrial Area, Sri Ganganagar.

c. Whether appraised DPR with approved

layout plan received or not

Yes

d. Total Area of industrial estate/ area (acre)

(p-6 of SIDBI)

81.11 acres

e. Area to be developed (acre) 81.11 acres

f. Number and sizes of plots to be developed

(p-29 of SIDBI)

82 plots of different size i.e. 700 sq. mtr-

10000 sq. mtrs.

g. Implementing Period (p-26 of SIDBI) 24 months from the date of sanction

h. Other ID projects sanctioned in same district: year of sanction, number of plots

allotted, units set up, etc.

No

i. Performance of ID projects in state. This office has so far sanctioned 11

projects for setting up of new Industrial Estates. Out of which, 9 projects have been

completed and remaining projects are at various stage of implementation. 2 existing

industrial estates towards up-gradation project have also been sanctioned under

MSE-CDP, which are under

implementation.


Description Comments by

Cluster Division

a. Implementing Agency (IA): Rajasthan State Industrial

Development & Investment

Corporation Ltd. (RIICO), Jaipur

b. Track Record of the IA RIICO has completed 9 new ID

projects for infrastructure development.

Track record is

satisfactory.

c. Appraisal by SIDBI (Observations and

recommendations). Attach SIDBI report. (p-29 of

SIDBI)

Yes, The proposal satisfies the norms and

parameters of the modified MSE-CDP scheme for setting up of MSE-

CDP (ID) centre and is considered support worthy.

d. Whether sufficient facilities available at site. (Proximity

to railway stations / state

� The area is well connected by road and railways.

� RIICO would manage water

xciii

highways, availability of

water supply, adequate

power supply, telecom

facilities, dwelling places of

workers)

(p-6, 10 & 11)

supply in the proposed ID centre

through its own bore well and

water reservoirs.

� Sri Ganganagar district is having

a lignite based thermal power

project. Due to this project, the

power position in the district is

quite good.

e. Whether land is in

possession in the name of IA

with Clear Title

No Land documents are

required.

f. Whether Zoning regulations


conversion etc complied

with

No

g. Whether State Level


Constituted

No Documents regarding

constitution of State Level Committee are

required.

h. Whether confirmation

received form IA that it will

meet the cost in excess of

approved project cost and

any escalation in cost.

Specific confirmation not received Commitment letter is

required.

i. Basis of elements of project

Cost

Not given

j. Tangible Outcomes of the

project • Creation of 82 plots.

• Generation of direct

employment for about 500-600 persons initially and indirect

employment for about 900-1200 persons in 2-3 years.

k. Justification of the Proposal

(p-29 of SIDBI)

This project will improve socio economic condition of large number

of people and society in this district.

3. Project Cost:

(Rs. in Lakh)

Particulars Estimated by IA Recommended

by SIDBI and as per

guidelines

1 Land development and other overhead

infrastructure

i Compensation for land 1298.00 0.00

ii Cost of land filling/ leveling including

boundary wall/fencing

64.00 64.00

iii Cost of laying roads (Internal and

approach roads)

269.00 200.00

iv Road side greenery & social forestry 9.00 9.00

v Water supply including overhead tanks

and pump houses

142.00 110.00

vi Water harvesting 20.00 10.00

xciv

vii Drainage 135.00 60.00

viii Power (sub-station and distribution

network including street light etc),

Generation of non-conventional energy

73.00 73.00

ix Others (sanitary conveniences etc.) 10.00 10.00

2 Administrative and other services

complex

0.00 0.00

i Admin. Office building 32.00 20.00

ii Raw material storage facility, Marketing

outlets

10.00 10.00

iii Provision for up-gradation of

infrastructure

132.00 0.00

3 Effluent Treatment facilities 105.00 80.00

4 Contingencies and pre operative

expenses

901.00 20.00

TOTAL 3200.00 666.00


Particulars Proposed by

IA

Proposed by SIDBI as

per MSE-CDP

iii GoI Grant under MSE-CDP 526.00 400.00

iv RIICO contribution 2674.00 2800.00

Total 3200.00 3200.00

5. Shortcomings:

i. Land is not in possession/ in name of the implementing agency

ii. Recommendation from State Govt, constitution of State Level Committee

6. Proposal for the Consideration of the Steering Committee: Cluster division recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the

State Government within 6 months, failing which the proposal shall be dropped.

xcv

xcvi

Agenda No.30.36 Proposal to set up Common Facility Centre (CFC) for Home Furnishing

Cluster, Panipat, Haryana

The proposal has been received from Director of Industries & Commerce, Govt. of Haryana.

Information about the cluster and proposed CFC is as follow:

1. Basic Information of Cluster:

b. Name of the Cluster

Home Furnishing Cluster

c. Location of Cluster

Panipat, Haryana

d. Products of the Cluster

Home furnishing products (Cushions, Curtains, Table Linen,

Floor Coverings, Shaggy, Rugs, Bathmats and Cushion Covers

ETC.)

e. No. of Enterprises


3200 manufacturing units

(Page no. –10 of DPR)

f. Turnover (Rs in crore) Rs. 11000 crore. (Page no. – 4 of DPR)

g. Exports (Rs in crore) Rs. 3000 crore. (Page no. – 4 of DPR)

h. Employment in Cluster 75,000 persons (Page no. – 4 of DPR and page no. -1 of

Appraisal Report)

i. Technological Details The cluster has around 1000 traditional and 300 modern manufacturing units engaged in the manufacture of the above

products. Currently, hand tufted & 4 needle tufting machines are being used for production. There are limitations of space

and huge shortage of skilled manpower. The production level is

hampered and per person productivity is as low as 1 meter per

day. There is absence of facilities like automated secondary

backing line.

j. Whether DS R conducted The DSR conducting in the year 2011-12 (DPR was prepared

by Access Consultancy Service.)

k. Main findings of DSR

(Page no. – 1 of DSR)

Introduction of new improved manufacturing technologies,

without losing the traditional product values.

Strategic interventions for productivity enhancement and

Technological up gradation with the help of Technical

Consultants and support firms.

Research initiative for technological advancements.

l. Main Problems of cluster

(Page no. – 11 of DSR) • Low productivity.

• Limited range of products.

• Low risk taking ability.

• No branding of products.

• No consistency in the quality of raw-materials.

• Limited market study of current trends/color forecast.

• Lack of modern technology uptake.

• Labour intensive manufacturing.

xcvii



a. Justification for CFC

(page no. 24 of Appraisal

report)

• The home furnishing cluster sector in India is presently going through a major

change. Traditional markets are saturated while new markets are offering

opportunities for growth.

• There is evidently great potential

for the home furnishing cluster of Panipat.

Presently, cluster firms experience some

critical constraints. Enterprises operate

with relatively low net profit margins with stagnant sales and the industry confronts a

scenario of rising raw material prices and faces tough competition in the global

market and is not able to match the world standards in terms of designs and quality of

output produced by them.

• In present globalised scenario,

MSME sector also need to be competitive

and face the global market to improve their

productivity and sales. To achieve the

objective, the interventions of Govt. of

India in terms of grant in order to set up

CFC would further give momentum to

industrialization.

• The envisaged project will

complement the rapid growth of the cluster in terms of manpower as well as upgrading

and testing needs.

• It is expected to increase net

earnings of home furnishing manufacturing

firms as a result of the common facility and

related interventions. This is because use of

advance and the complete range of value adding and expensive facilities like backing

machine, CAD centre, printing machine etc. could help lend better aesthetic look,

finish and quality and help increase sale value of the end product.

b. Location of CFC (page no. 3 of Appraisal

report)

Village Baroli , panipat, Haryana

c. Land for CFC

(Page – 15 of Appraisal

Report)

viii. Weather land acquired ix. Title is in name of

x. Valuation and its basis

xi. Land is sufficient

xii. Change of land use

6.78 acre (27439 sq.mtrs) of land has been

allotted by State Govt. on 33 year lease. Lease agreement shall be executed once

formal approval is received.

Title deed required.

xcviii

xiii. If on lease, duration of

lease

xiv. Whether lease is legally

tenable

d. Total Building area (sq ft)

(Page – 15 of Appraisal

Report)

40000 sq. ft.

e. Rate of construction of

building (Page – 15 of Appraisal

Report)

Total cost Rs. 171.50 lakh

(Rs 428.75- per sq. ft)

f. Main facilities proposed:

(Page – no. 10 of

Appraisal Report)

• Skill development

• CAD Design Centre with multi needle

machine,

• Automated backing line

• Carpet Printing machine

g. Production Capacity of

CFC

(page – 10 of appraisal

report)

Installed capacity - Rs. 1405.31 lakh pa at

100% capacity utilization. Revenue will be

generated from CAD Centre and value

adding facilities like backing plant and

printing machines. Capacity utilization

would be 60% during 1st year, 65% in the

2nd year, 75% in 3rd year onwards.

h. Major Outputs / Deliverables of CFC,

Projected performance of the cluster after proposed

intervention (in terms of production,

export/domestic sales and

direct/indirect employment, etc.)

Tangible outputs not mentioned. Required

i. Pollution clearance

required or not

SPV proposes to install an Effluent

Treatment Plant for the treatment of water

Consent to

Establish Required

j. Man power in CFC 61 nos.

k. Revenue generation mechanism for

sustainability of assets

(service/user charges to be

levied, any other-to be

specified)

Rs. 820.38 lakh.

(Page no. – 37 of appraisal report)



a. Name and address

(P-06 of DPR)

The Panipat Home Furnishing Cluster Pvt.

Ltd. (TPHFCPL), Panipat, Haryana.

b. Nature of SPV (company

or Society or Trust)

Private Limited Company.

C/o Diamond Exports, Babal Road,

Panipat, Haryana.

c. Name of the state Govt

and MSME officials in

The SPV shall have one nominee of the

State Government as member.

xcix

SPV

d. Date of formation of SPV 24 August, 2011

e. Number of members 25 members


AoA submitted Not available. Required.

g. Authorized share capital Rs 25 lakh divided into 2,50,000 equity

shares of Rs. 10 each.

h. Shareholding Pattern The SPV is a private limited company of

25 members. The authorized capital of the

SPV is Rs. 25 lakh divided into 2, 50,000

equity shares of Rs. 10 each. No

individual shareholder will have more

than 10% equity stake in the capital of the

company.


contribution Not available. Required.

j. SPV specific A/c Not available. Required.



co-operative initiatives

pursued by SPV members need to be

highlighted with support documentation

The members, promoters/stakeholders

have several years of successful

experience in manufacturing and

marketing related products, have established links with marketing channels

and are financially sound. (p-6 /appraisal

report)

l. Technical Institution MSME-DI, Karnal and District Industries

Centre, Panipat, Haryana.

m. CFC may be utilized by

SPV members as also


However, evidence

should be furnished with

regard to SPV member

ability to utilize at least

60 per cent of installed

capacity.

Yes. There are around 300 modern and

1000 traditional MSE engaged in the

manufacture of home furnishing products

in this cluster who are facing critical

constraints. The proposed CFC will

provide facilities like skill development,

high tech CAD Centre, automatic backing

plant etc. to the members and non-

members. Looking into the demand of the

facilities, it may be assumed that CFC will

utilized at least 60% of their capacity.

n. (b) Power requirement


(Page – 13 of Appraisal Report)

(c) Water

(d) Gas/Oil/ Other

utilities

The SPV envisages power requirement of

300 KVA running the machines and for administrative facilities. They have

however proposed to apply for 400 KVA of connected load that can take care of

future requirement as well. The SPV envisages water requirement of

10 liters/sq. mtr. Water Charges are pegged at Rs. 0.50 sq. mtr. SPV has

earmarked Rs. 4500/annum for water

requirement.

c



a. Implementation

Agency

District Industry Centre, Government of

Haryana. Should be

Investment

Promotion Center,

Govt of Haryana

b. Implementation

Period

11 months from the date of obtaining

sanction of GOI.

Should be two

years after final

approval.

c. Appraisal of DPR and main

recommendations

(Page – 25 of

Appraisal Report)

The project is technically feasible and financially viable. The proposed

performance indicators and financial position are satisfactory.

The proposed CFC will provide facilities

like skill development, high tech CAD Centre, automatic backing plant etc. to the

members and non-members.

The proposal is considered to be support

worthy.

Terms and

Conditions of

SIDBI appraisal

need to be followed

by the

Implementing

agency and SPV.

d. Comments of

Technical Division

(i) In the DPR, there are no projections

of production capacity of the project.

(ii) Specifications of the proposed

machines and details of production

capacity etc. are not mentioned in the

DPR.

(iii)There is no information in terms of

quantity of finished products and quantity of raw material in the

profitability statement. (iv) The project cost in DPR is not

matching with the value of project considered by SIDBI in its appraisal.

Technical Division

has not cleared the

proposal.

Observations of

Technical Division

sent to State Govt.

Reply awaited.

e. Approval of Technical Committee

Yet to be placed before the Technical

Committee

f. Comments of Cluster

Development Division:

(i) SIDBI appraisal report at para 3(i) mentions that State

Govt. contribution is Rs. 1.77 crore, whereas State Govt. commitment for contribution received is for Rs. 1.50 cr.

(ii) Citing number of units in Micro category, GoI grant of 90% has been sought, a certificate from State Govt. would

be required mentioning that there are more than 50% units of in micro category in the cluster.

(iii) ‘Consent to Establish from Pollution Control Board would

be required.

(iv) Papers related to title/lease deed are required.

(v) Confirmation for SPV contribution is required.

(vi) Annexure-II of SIDBI’s appraisal shows bank borrowing

for working capital (WC). In principle approval for WC

loan is required.

ci

(vii) Annexure-IV (profitability) of SIDBI’s appraisal shows

‘Nil’ interest on WC, whereas WC bank loan has been

shown.

(viii) undertaking of at least 60% utilization of installed

capacity of CFC by SPV members required

(ix) Details of the specific bank account of the SPV required


Parameters As per DPR Recommendations by O/o

DC, MSME

i. Break Even Point (BEP)

BEP should be below 60% of the installed capacity.

48.55 %

suitable

j. Internal Rate of Return (IRR), payback period

(Should be above 10%)

IRR is positive at 20.68%.

suitable

k. Debt Service Coverage Ratio

(DSCR)

Not Applicable,

No debt component involved in the project.

There is no term loan.

l. Return on Capital employed (ROCE)

35.18 %

Highly viable (excess of 25% is desirable)

m. Net Present Value (NPV)

(need to be positive )

The NPV with 5% drop

in user charges out of Rs. 5.21 lakh.

suitable

n. DER N/A

o. Sensitivity Analysis Case IRR(

%)

(Post

tax)

NPV

(Post

tax)

ROCE

(%)

Base Case 14.95 175.83 37.26

5% reduction

usage of the

facilities

12.44 5.21 33.11

10% increase

in prod cost

12.78 15.14 30.16

Financia

l paramet

ers are satisfact

ory.

p. Working capital (In-principle

sanction of loan from a bank,

if applicable

arrangement made)

Not mentioned

q. Status of CFCs approved in the State

Currently, no CFC is working

No, CFC approved in the State.

6. Project Cost: (Rs. in lakh)

S.N. Particulars Amount

1 Land and its development On Lease

2 Building & Other Civil Constructions 171.50



cii

10 Preoperative expenses 1.84

11 Contingencies 5.00

12 MMWC 58.00

Total Project Cost 1769.15


8. Plant and machinery- Annexure - I


principle’ approval so that complete proposal is submitted by the State Government within 6

months, failing which the proposal shall be dropped. Steering Committee may approve the

proposal for setting up of the CFC in Home Furnishing Cluster, Panipat.

Particulars % age Amount (Rs. in lakh)

1. SPV contribution (equity share capital)

13.69% 242.24

2. Grant-in-aid from Govt. of India (90% of the eligible project cost upto Rs. 15

crore)

76.31% 1350.00

3. Grant-in-aid from Govt. of Haryana

(10% of the total project cost)

10.00% 176.91

Total 100% 1769.15

ciii

Agenda No. 30.37: Proposal for conducting Diagnostic Study (DSR) in four clusters

Proposal has been received for conducting Diagnostic Study in four clusters from Director

of Industries & Commerce, Govt. of Haryana.

I AUTO COMPONENTS CLUSTER, FARIDABAD

1 Brief information of Cluster:

Name of the Cluster Auto Components Cluster

Location Faridabad, Haryana

Products Sheet metal, Rubber & Plastic components.



Not mentioned.


No. of Units 2500 units

Profiles of units/

Category

Not available.

Turnover (per annum) Year Rs.(Crore)

2006 -07 2133.00

2007-08 2370.00

2008-09 2633.00

2009-10 2925.00

2010-11 3250.00

Export Rs. 250 crore


indirect)

10,000- Direct Employment

20,000- Direct & Indirect Employment

Presence of

association/NGO,

contact details

Faridabad Small Industries Association, Faridabad.

Name of the agency

for conducting DSR

Agency for DSR needs to be selected as per GFR provision.

Main Problems of

cluster • The typical micro-sized units in the cluster have poor linkages

with Nationalized and other commercial banks affecting their

performance potential.

• The fact that much of required raw material including CR and HR

sheets and NR is sourced through traders has been affecting the potential performance of cluster enterprises.

• There is need to however, employ advanced technology machine tools like CNC lathes machining centres, etc. despite the needs to

upgrade activities in terms of automatic pipe cutting equipment or

CNC machining /lathe facilities firms are yet to pursue serious

upgrading efforts. The reason may be ascribed to resource

constraints.


(Rs in lakh)

Proposed by Implementation Agency (IA)

IA, its experience in cluster

development

Investment Promotion Center, Chandigarh (an agency of

Department of Industries and Commerce, Govt. of Haryana).

Project Cost Rs. 2.20 Lakh for DSR

civ



MSME-DI, Karnal;

DIC, Faridabad.

Justification for DSR Finding of DSR will help to take the decision for further action

of plan for the cluster’s needs.

Outcomes Not mentioned.

II) PRINTING & PACKAGING CLUSTER, KARNAL, HARYANA.


Name of the Cluster Printing & Packaging Cluster

Location Karnal, Haryana

Products Visiting cards, Marriage cards, corrugated boxes, books, calendars,

diaries, magazines, paper cups, mono cartons etc.



Not mentioned.

Age of cluster About 60-70 years old.


Profiles of units/

Category

Not mentioned.

Turnover (per annum) Year Rs.

2006-07 226 crore.

2007-08 260 crore.

2008-09 300 crore.

2009-10 360 crore.

2010-11 452 crore.

Export The whole cluster is currently catering to the Domestic market only.


indirect)

3172- Directly Employed,

6000- Directly and Indirectly Employed

Presence of association/NGO,

contact details

Name of the agency

for conducting DSR


Main Problems of

cluster • Non-use of testing equipment and in case of some jobs testing in

labs in the NCR region with long lead times and logistical

constraints

• Power not available for several hours a day and natural gas

connectivity being some time away, the option of exploiting

alternate energy options including biomass based energy

generation is necessary.

• The typical micro-sized units in the cluster have poor linkages


cv


• The fact that much of required raw material is sourced through

traders and dealers has been affecting the potential performance

of the cluster enterprises.

• Despite the fact that competent technical institutions such as the

Kurukshetra University (Department of Printing Technology) are

present in nearby locations, cluster firms are yet to pursue serious

upgrading efforts. The reason may be ascribed to resource

constraints.

• There is Potential for exports subject to technology upgrading in

Publication, Pharma sector & Wedding cards.


(Rs in lakh)



development






DIC, Karnal

MSME-DI, Karnal

Justification for DSR Finding of DSR will help to take the decision for further

action of plan for the cluster’s needs.


III PRINTING & PACKAGING CLUSTER, RAI, SONEPAT



Location Rai, Sonepat, Haryana

Products Marriage cards, calendars, and printed stationeries to labels,

corrugated box manufacturing, pharmaceutical packaging, sweet and gift box manufacturing.

Technological details, pollution angle, etc.

Not mentioned.

Age of cluster About 20-30 years old.


Profiles of units/

Category

Not mentioned.

Turnover (per annum) Year Rs. Crore

2006 – 07 105.00

2007-08 115.00

2008-09 127.00

cvi

2009-10 140..00

2010-11 154.00

Export Presently Negligible.


indirect) 4400- Direct Employment

Name of the agency

for conducting DSR


Main Problems of

cluster • Non-use of testing equipment and in case of some jobs testing in

labs in the NCR region with long lead times and logistical

constraints

• Power not available for several hours a day and natural gas

connectivity being some time away, the option of exploiting

alternate energy options including biomass based energy

generation is necessary.

• The typical micro-sized units in the cluster have poor linkages




traders and dealers has been affecting the potential performance

of the cluster enterprises.

• The market development initiatives will have to be coupled with

activities targeting technology upgrading- particularly by way of

pre-press, press and post-press and packaging operations. In the

absence of support from government, cluster enterprises may

experience sustainability concerns in the medium-to-long term

perspective.

• There is Potential for exports subject to technology upgrading in

Publication, Pharma sector & Wedding cards.


(Rs in lakh)



development






DIC, Gurgaon;

MSME-DI, Karnal

Justification for DSR Finding of DSR will help to take the decision for further


cvii

IV STAINLESS STEEL UTENSILS CLUSTER, KUNDLI


Name of the Cluster Stainless steel utensils Cluster

Location Kundli, Sonepat

Products Stainless steel utensils and cutlery


Not mentioned.


No. of Units 72 nos. units

Profiles of units/

Category

(MSE firms – 72, Medium and Large firms – 0)

Turnover (per annum) Year Rs. in crore

2006-07 458.00

2007-08 427.00

2008-09 606.00

2009-10 695.00

2010-11 800.00

Export 50-60% of out-put being export oriented.


indirect)

4200 nos. (Directly)

8000 nos. (Directly and indirectly)

Presence of

association/NGO,

contact details

Stainless Steel House ware Association.

Name of the agency

for conducting DSR


Main Problems of

cluster • Rising input costs in terms of coil and “patta” and relatively

stagnant market prices for finished products and services offered

by cluster firms has been affecting profitability of cluster firms.

Optimization of procurement costs as well as technology

upgrading is critical to retain competitive advantage.

• With power available only for a few hours a day and

establishment of the connectivity plans of the HSIIDC some time

away, the option of exploiting alternate energy options including

biomass based energy generation is critical without which

viability of firms may be affected in the longer term perspective.

• The typical small-sized units in the cluster have poor linkages

with Nationalised and other commercial banks affecting their

performance potential. Typically, the assistance secured from

banks has low limits.


traders has been affecting the potential performance of cluster

enterprises They are yet to explore joint and bulk purchase of

units from firms like Jindal or Hissar Steel or direct import of

some grades of units as to further optimize procurement costs.

They are therefore often subject to speculative action by traders.

• Despite the needs to upgrade activities in terms of circle cutting

and polishing firms are yet to pursue serious upgrading efforts.

cviii

The reason may be ascribed to resource constraints.

• The enterprises are largely small in size and unable to

individually reap scale economies on some fronts (procurement,

and technology upgrading) as against larger manufactures in

other regions like China.

• There is an acute shortage of manpower in activities like

polishing, also implying need for greater capital intensive

automation in the segment.


(Rs in lakh)



Investment Promotion Center, Chandigarh (an agency of Department of Industries and Commerce, Govt. of Haryana).




DIC, Sonepat;

MSME-DI, Karnal.

Justification for DSR Finding of DSR will help to take the decision for further action

of plan for the cluster’s needs.


Proposal for Steering Committee: Cluster Division recommends the proposal for coudcting diagnostic study in above mentioned four clusters. Steering Committee may approve the

proposal for conducting Diagnostic Study in 4 Clusters at cost of Rs. 2.20 lakh each with 100% GoI grants.

cix

Agenda No. 30.38: Soft Interventions in Paint & Chemical Industry Cluster, Karnal.

Proposal has been received from MSME-DI, Karnal.


Name of the Cluster Paint & Chemical Industry Cluster

Location Karnal

Products Synthetic Enamel, Red Oxide Primer, Cement Primer, Water proof

cement paint, Oil Bound Distemper, Plastic Emulsion, Furniture Enamel, Paint Brush and all kind of industrial/decorative thinners.


In the present technology the plants and machineries used are - Ball mill, Edge runner, Pug mill and Pebble mill.

These machineries not only take lots of time to produce the finished materials but also have high power consumption. They also do

not furnish the products of good quality which can meet the current

consumers requirement. The production capacity is also low.

Age of cluster About 33 years.


Profiles of units/ Category

Minority – 6, Woman – 1 and SC/ST –Nil.

Turnover (per annum) Rs. 100 crore per annum.

Export No direct export from the cluster.


indirect)

700 nos. (Direct)

Presence of

association/NGO,

contact details

The Karnal Paints & Chemicals Manufacturer Association.

Whether DSR

conducted. Main

outcomes of DSR

Yes.

• The vision of Karnal Paint & Chemical Cluster is to continuously upgrade the manufacturing competence and quality of products,

introduce the manufacturing of new products and stimulate the growth in their manufacturing capacities to make it as an

economically progressive cluster.

Main Problems of

cluster • No adherence to global regulatory norms.

• Inadequate availability of raw materials.

• Non-availability of Skilled manpower.

• No training programme.

• Weak linkages with technical institutions.

• Lack of common testing and research laboratories.

• Limited product range of cluster.

• No joint marketing efforts.

• Rising cost of raw materials and other inputs.

Need for CFC, if any Establishment of CFC for testing and training, providing raw material

depot, effluent treatment facility, complementing production process etc.

2. Analysis of Proposal

cx

(Rs in lakh)

Proposed by Implementation Agency (IA) Comments, if

any


cluster development

MSME-DI, Karnal

Activities Proposed

(Technology / Quality / Marketing / Export /


• Trust Building.

• Awareness Building on seminars on Cluster

Development Programme

• Capacity Building

• Exposure Visits to relevant cluster.

• Strengthening of Associations


by the stakeholders

Yes.

Project Cost Project Cost: Rs. 22.80 lakh

GoI contribution: Rs.15.50 lakh. Cluster units/association: Rs. 7.30 lakh.

Technical Agency to be associated & its expertise

MSME-DI, Karnal, DIC, Karnal.

Justification for undertaking Soft

Interventions

Soft interventions will help like improvement of technology, facility up gradation, propagation of

quality control, sourcing of raw material, marketing, organizational building and

networking interventions as a result to increase the turnover, production, market, quality and

employment in the cluster.


after) in terms of sales, Exports, Investment,



others

S.

No

Particulars Before

Interventions

After

Interventions

1. Turnover 100 crore. 170 crore.

2. Employment 700 nos. 1050 nos.

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering

Committee may approve the proposal for Soft Interventions in the cluster at a total cost of Rs.

22.80 lakh for duration of 18 months with GoI contribution of Rs. 15.50 lakh and the remaining

Rs. 7.30 lakh to be contributed by cluster units / association.

cxi

Agenda No. 30.39: Soft Interventions in Pharmaceutical Cluster, Karnal.

Proposal has been received from MSME-DI, Karnal.


Name of the Cluster Pharmaceutical Cluster

Location Karnal

Products Tablets, Capsules, Liquid Orals, Ayurvedic Medicines, Herbal

Extracts, External Preparation, Ointments, Dry Powder & Syrups.



Process & quality up-gradation is essential through skill based training

programmes and propagation of advanced technologies. Strong linkage will be established with Drug Control Department besides marketing

assistance and technology up gradation scheme and technology/quality up gradation scheme of National Manufacturing Competitiveness

Programme.

Age of cluster More than 3 decades.

No. of Units 55 nos. (Allopathic – 29 and Ayurvedic – 23)

Profiles of units/

Category

Women – 6, Minority – 2

Turnover (per annum) Rs. 131 crore.

Export Rs. 30 crore.


indirect)

1600 nos. (Direct – 1000 and Indirect – 600)

Presence of

association/NGO,

contact details

M/s Karnal Pharmaceutical Manufacturers Association.

Whether DSR

conducted. Main

outcomes of DSR

Yes. DSR recommends soft and hard interventions in the cluster.

Main Problems of

cluster • Absence of common testing facilities.

• Sourcing of raw materials from far away places leading to high

cost of production.

• Lower value addition and value realization.

• Limited product diversification.

• Limited market penetration.

• Poor efforts on export marketing.

• Lack of brand identity.

• High cost of packaging material with spurious/poor quality material.

Need for CFC, if any Establishment of Common Testing Laboratory Setting up of common pet packaging plant

Setting up of raw material depot.


(Rs in lakh)


any


cluster development

MSME-DI, Karnal

Activities Proposed • Trust Building. �

cxii


any




• Awareness Building on seminars on

Cluster Development Programme





by the stakeholders

Yes.


GoI contribution: Rs.12.35 lakh. Stakeholders : Rs. 3.25 lakh.



MSME-DI, Karnal

DIC, Karnal.

Justification for

undertaking Soft

Interventions

Soft interventions will help to upgrade the

manufacturing competence and quality of

products to introduce the new products and

stimulate the growth in their manufacturing

capacities to make it as an economically

progressive cluster.




Profitability, Employment, ISO & other Certification,

others

S.

No

Particulars Before

Interventions

After

Interventions

1. Turnover 131 crore 200 crore.

2. Employment 1600 (Increase by

50%)

3. Profitability - (Increase by

20%)

4. Export 30 crore (Increase by

20%)

4. ISO 9001 Certification

(units)

5 (units) 15 (units)


Committee may approve the proposal for Soft Interventions in cluster at a total cost of Rs. 15.60

lakh for duration of 18 months with GoI contribution of Rs. 12.35 lakh and the remaining Rs. 3.25 lakh to be contributed by stakeholders.

cxiii

Agenda No.30.40 Soft Interventions in Furniture and Fabrication Cluster, Rampur

Bushahsr

Proposal has been received from Director of Industries & Commerce, Govt. of Himachal

Pradesh.

1 Brief information of Cluster

Name of the Cluster Furniture and Fabrication Cluster.

Location Rampur Bushahsr, Shimla, HP

Products Furniture and Iron Fabrication

Technological

details, pollution

angle, etc.

Lack upgraded technology and training, due to unplanned or

unaligned production there is hugh wastage of raw materials, also

due to stringent use or demand. Lack of space also adds to the

wastage and also Sound and Air pollution.


No. of Units 25

Profiles of units/

Category

Micro and small -25

Turnover (per

annum)

Approx Rs.586 Lacs

Export NIL

Employment (direct

/ indirect)

125-140 people

Presence of

association/NGO,

contact details

--

Whether DSR

conducted

DSR was conducted in July 2010.

Extent of

Competition for

cluster

At present the Cluster serves the needs of the Local market. The

basic competition is from the other adjoining clusters. These units will only be able to compete in the market if they are give technical

and design oriented training and also a session on quality assurance methods

Main Problems of

cluster

1. Lack of Space , Skilled Labour, Machinery and Knowledge of their use

2. Lack of Knowledge of Taxes, Transportation Facilities and New Design Knowledge and Design Development.

3. Lack of work Methods, Funds, easy access to Raw Material,

Safety Method and Electricity

4. Lack of Marketing of the Products

Need for CFC, if any Yes


(Rs in lakh)

As per proposal Comments, if any


development

District Industries Centre, Shimla State govt will be

requested to

identify suitable

agency for

cxiv

implementation

Activities Proposed




1. Formation of an Association,

2. Actively participating in

Exhibitions and Fairs Nationally

and Internationally,

3. Workshop, Seminar and training

sessions to be conducted for the

Unit workers in order to equip

them with the knowledge on

design, technology, work methods,

quality, budgeting, marketing, etc.

4. Formation of website

5. Organizing Factory Visit and

Study tours at various companies, clusters, etc.

Whether DSR validated by

the stakeholders

Not validated

Project Cost Project Cost : 9.85 lakh

GoI contribution : 8.13 lakh

State Govt. Contribution:0.86 lakh

SPV contribution : 0 .86 lakh



Some private tool and Equipment companies may be

associated with in order to give the workers training on

usage and designing aspects.

Justification for

undertaking Soft

Interventions

DSR was conducted in July 2010 in order to get the Pulse of

the Cluster standings in terms of technology, design, funds

and issues being faced by the existing units.






others

Not given


Committee may approve the proposal for Soft Interventions in Furniture and Fabrication Cluster,

Rampur Bushahsr at a total cost of Rs. 9.85 lakh for a period of 18 months, with GoI contribution of Rs. 8.13 lakh, Rs.0.86 Lakhs from HP and the remaining Rs. 0.86 lakh to be

contributed by SPV.

cxv

Agenda No.30.41: Proposal for conducting diagnostic study of Iron & Steel Product Cluster,

Damtal, District Kangra, HP


Pradesh.

1. Details of the proposal are as under:


Parameters Proposed by Implementing

Agency

Comments by Cluster

Division


Himachal Consultancy Organization (HIMCON).

State govt will be requested

to identify suitable agency

for implementation

Project Cost Rs. 2.25 Lakh

Technical Agency to

be associated & its Himachal Consultancy Organization

(HIMCON).

HIMCON is a recognized

consultant of Govt. of HP

Name of the Cluster Iron & Steel Product Cluster

Location Damtal, District Kangra, HP.

Products Iron & Steel Product – Steel wires, GI wire, wire netting, standard

wire, annealed wire, HC wire, electrode wire, wire mesh, wire nails,

barbed wire, chain link, MS ingots, MS rod, MS channel/Angle etc.

Age of cluster 35 years.

No. of Units 48 nos.

Size of the Units Micro-11, Small-33

Profiles of units Micro-11, Small-33; women owned-02; SC owened-01;Minorites

owned -01

Employment Not available.

Turnover Rs. 200.00 crore.


Problems of the

cluster

� Non-availability of raw material depot, non-availability of

testing facilities for the raw material as well as for the

finished product.

� Lack of technical resource centre for skill up-gradation of

work force.

� Non-availability of container depot and lack of physical

infrastructure like good roads, sewerage and common

effluent treatment plant.

� Lack of market information, feeble relation/poor linkage between industry and technical institutions.

Name of the agency

for conducting DSR

Himachal Consultancy Organization.

(Agency for DSR needs to be selected as per GFR provisions)

GoI assistance

proposed

Rs. 2.25 lakh

Technical consultant/

Professional Bodies to be associated

MSME-DI, Solan

DIC, Dharamsala Industrial Area Development Agency Dist. Kangra.

Govt. of Polytechnic College Kangra.

cxvi

expertise

Justification for DSR Need related to technology, quality

energy consumption pattern,

pollution, emission process

modification, marketing exports,

skill development etc. for activities

proposed under soft interventions

has clearly been worked out in

diagnostic study report.


Committee may approve the proposal for conducting Diagnostic Study in Iron & Steel Product

Cluster, Damtal, District Kangra at a total cost of Rs. 2.50 lakh and GoI grants of Rs. 2.25 lakh.

cxvii

Agenda No.30.42: Proposal for conducting diagnostic study of Wooden Furniture

Cluster, Hamirpur, Himachal Pradesh


Pradesh

1. Details of the proposal are as under:

Name of the Cluster Wooden Furniture Cluster.

Location Hamirpur, Himachal Pradesh.

Products Wooden furniture, doors, windows and frames.

Age of cluster NA

No. of Units Total -21 Units (All Micro Units)

Size of the Units Not available.

Profiles of units Not available.

Employment Not available.

Turnover Rs. 2.00 to 2.50 crore

Export 2.00 to 35 .00 lakh

Problems of the cluster � Non- availability of raw material, timber is not locally available.

� Most of the units are using the obsolete technology for production and using the

traditional ways as they are unable to invest to purchase modern machinery..

� Non- availability of container depot. � Skilled local labour is not easily available.

Name of the agency for

conducting DSR Himachal Consultancy Organization.

(agency for DSR needs to be selelcted as per GFR

provisions)

GoI assistance proposed Rs. 2.00 lakh

Technical consultant/ Professional Bodies to be

associated

MSME-DI, Solan; DIC, Hamirpur; IADA, District Hamirpur.


Parameters Proposed by Implementing

Agency

Comments by Cluster

Division


cluster development

Himachal Consultancy

Organization (HIMCON).

State govt will be

requested to identify

suitable agency for

implementation

Project Cost Rs. 2.00 Lakh

Technical Agency to be associated & its

expertise

Himachal Consultancy

Organization (HIMCON).

Justification for DSR Need related to technology,

quality energy consumption pattern, pollution, emission

process modification, marketing exports, skill development etc. for

cxviii

activities proposed under soft

interventions has clearly been

worked out in diagnostic study

report.


Committee may approve the proposal for conducting Diagnostic Study in the Cluster at total

cost of Rs. 2.00 lakh with 100% GoI grants.

cxix

Agenda No.30.43: Soft Interventions in Oil Expeller & Parts Manufacturing Cluster,

Ludhiana.

Proposal has been received from Director of Industries & Commerce, Govt. of Punjab.


Name of the Cluster Oil Expeller & Parts Manufacturing Cluster

Location Ludhiana, Punjab

Products Oil Expeller & Parts



Most of the manufacturers are Micro & Small Enterprises and are

using very old & Conventional machines for making parts of machines. Casting being done is not graded & even testing is not done

for testing the properties of casted material.

Age of cluster 60 years.

No. of Units 177 units.

Profiles of units/

Category

All are Micro & Small units.

Turnover (per annum) Rs. 145.00 crore

Export Rs. 40.00 crore


indirect)

2000 nos.

Presence of

association/NGO,

contact details

Oil Expeller & Parts Manufacturing Society, Ludhiana.

Whether DSR

conducted. Main

outcomes of DSR

Yes

� Designing of Expellers and its parts is not being done presently in

a scientific manner, so training needs to be provided on structured

designing of components by using designing software, doing

FMEA (Failure Mode & Effect Analysis), stress calculation and

use of factor of safety etc.

Main Problems of

cluster • Fluctuation in price and high cost of raw materials, ,

inadequate skilled operators to run modern machines.

• Low productivity level of labour, high rejection rates.

• Absence of sufficient testing facilities

• Weak linkages between MSME’s and institutions technology

upgradation is slower.

• Higher electricity tariff, terrible shortage of power, high rate of

interest for loans.

• Lack of specialized skill training institutes, poor working

conditions, lack of working capital and high tax and duties

structure.

Need for CFC, if any � Tool Room needs to be created.

� A forging unit needs to be created.

� A training institute needs to be created

� A casting plant needs to be put to improve availability of graded

castings.

cxx


(Rs in lakh)

Proposed by Implementation Agency (IA) Comments, if any


cluster development

Udyog Sahayak, Deptt. of Industry, Govt. of

Punjab.

Activities Proposed

(Technology / Quality / Marketing / Export /


� Awareness creation & implementation of

5S, 3K, Kaizens, Pokayoke, TPM&TQM. � Trust Building

� Awareness on various Govt. schemes � Participation in Foreign Fair

� Capacity building

� Visit to a successful cluster

Whether DSR validated by the stakeholders

Yes


GoI contribution: Rs. 10.48 lakh.

Cluster units/association: 4.82 lakh.



Taaran Industries Ludhiana, MSME-DI,

Ludhiana

Justification for

undertaking Soft Interventions

Soft Interventions aims to identity & meet

the felt need of MSME’s in the cluster by channelizing the utilization of resources of

support service institute in a coordinated and integrated manner.

Main outcomes (before & after) in terms of sales,




others

S.

No

Particulars Before

Interventions

After

Interventions

1. Total turnover Rs. 145.00 crore

Rs. 300.00 crore

2. Exports Rs. 40.00

crore

Rs. 110.00

crore

3. ISO 9001:2008 2 units 5 units

4. Awareness on latest

concepts of 5S,

KAIZENS,

POKAYOKE, PARETO

Analysis, 7-QC Tools,

SMED, kan ban,

inventory management,

TPM, TQM, OEE, 6-

Sigma and lean manufacturing

Very low

(around 10-15

%)

High

awareness in

all employees

of cluster

member units

(100%)

5. Rejection 5-6% 2-3%

6. Pollution Not within

permissible

limits

Within

permissible

limits

7. Cost of manufacturing Rs. 67 Kg. Rs. 60 Kg.

cxxi



lakh for duration of 18 months with GoI contribution of Rs. 10.48 lakh and the remaining Rs. 4.82

lakh to be contributed by cluster units / association.

cxxii

Agenda No.30.44 Soft Interventions in Steel Re-rolling Cluster, Mandi Govindgarh

Proposal has been received from MSME-DI, Ludhiana.


Name of the Cluster Steel Re-rolling Cluster

Location Mandi Gobindgarh, Punjab

Products Steel products are as follow: -

Rounds, Squares, Bar, TMT Bars, Press Patti, Flat, Channel, CTD Bars, Joists, Patra, Angles, Hexagons.


Mandi Gobindgarh’s industries are mostly using traditional type of machines and processes. The Mandi Gobindgarh steel re-rolling

industries still survive on old conventional processes and technologies.

The industry is presently using conventional low speed, open train type

machineries and manual operations that is resulting into low

efficiency-productivity wise as well as energy wise.

Age of cluster 55 years old

No. of Units 273 Nos.


Women – 2, Minority – 25%

Turnover (per annum) Rs. 1145.00 Cr.

Export NA


indirect)

Over 1 lakh (Direct & Indirect)

Presence of

association/NGO,

contact details

All India Steel Re-roller’s Association, Mandi Gobindgarh

Whether DSR

conducted. Main

outcomes of DSR

Yes

� Continuous supply, no inventory cost and reduced working capital

requirement.

� Higher energy efficiency and saving in cost.

� Improved process efficiency and productivity due to lesser scale

losses and resultant savings in cost.

� Provides advantage in rerolling of thicker and heavier material

which is otherwise difficult in coal furnaces.

� Provides different heating zones which is not possible in coal furnaces.

Problems of the cluster

• Hinterland location restricts the Export potential.

• Non-availability of international airport.

• BDS providers are not employed.

• Highly skilled manpower is not available.

• No formal skill up-gradation training for worker.

• Technological level is low leading to low productivity & value

addition and poor quality standards.

• Absence of technical analysis and professional design with

regard to many products.

• Low level of automation. The industry is highly labour

intensive. Informal and unorganized industrial sector.

Entrepreneurs are shy of new and upgraded technology.

• Migration of Entrepreneurship to other parts of the country due

to facilities and incentive there.

cxxiii

• Poor exploration of domestic market as well as export market.

• Inadequate information on markets. Price based competition.

Poor brand building efforts.

Need for CFC, if any � R & D support to the electric arc and induction furnaces, ladle

refining units, Rerolling mills and direct reduced iron units.

� Provide testing facility services to the industries.

� Provide trained technical manpower through short term and long

term courses.


(Rs in lakh)

Proposed by Implementation Agency

(IA)

Comments by Cluster

Division


cluster development

MSME-DI, Ludhiana

Activities Proposed




� Capacity building & Trust building.

� For proper coordination of the cluster

actors regular meetings shall be

convened.

� Market Development.

� Technology Upgradation.


by the stakeholders

-


GoI contribution: Rs. 17.90 lakh.

Cluster units/association contribution:

Rs. 6.70 lakh.


• National Institute for Secondary Steel Technology, Mandi Gobindgarh,

• PPDC, Agra,

• MSME-Tool Room, Ludhiana

• Mechanical Engineering Research &

Development Organization

(MERADO), Ludhiana

Justification for

undertaking Soft

Interventions

As per the DSR, cluster is unable to

develop because of the shortage of the

electricity, unskilled labour and ceiling in

production. All the investors are ready to

accept and follow the latest technology

subject to the availability at the reasonable and viable cost.






others

(Page – 49 of DPR)

Employment Generation (Direct and

indirect ) – 1 lakh – 3 lakh.

No. of Beneficiaries – 273 nos.

Proposal for the consideration of Steering Committee: Cluster Division recommends the

proposal. Steering Committee may approve the proposal for Soft Interventions in cluster at a total

cost of Rs. 24.60 lakh for duration of 18 months with GoI contribution of Rs. 17.90 lakh and the


cxxiv

cxxv

Agenda No.30.45: Proposal for conducting Diagnostic Study (DSR) in Agriculture

Implements Cluster, Malout, Distt. Mukatsar, Punjab



Name of the Cluster Agriculture Implements Cluster

Location Malout Industrial Club, Malout.

Products Agricultural Implements parts.



There is a dire need for adoption of modern technology to enhance

efficiency & productivity.


No. of Units 75 units (SME – 56)

Profiles of units/

Category

Not available.

Turnover (per annum) Rs. 62.00 crore.



indirect)

Not available.

Presence of

association/NGO,

contact details

Not given

Main Problems of

cluster

� Need for adoption of modern technology to enhance efficiency

and productivity.

� For reaping the benefits of global marketing, reducing inventory

costs and improving maintenance cost will meet the needs of the

market in the current business scenario.

� Globalization has resulted in standards that pervade products,

product performance, manufacturing, processing and services.

� Energy saving is another problem being faced by this cluster.


(Rs in lakh)

Description As Proposed


Udyog Sahayak, Deptt. of Industry, Govt. of Punjab.

Project Cost Total project cost of Rs. 2.50 lakh and GoI is Rs. 2.25 lakh.


Not available.

Justification for DSR The DSR will be elaborating the new technology for Tractor Parts Manufacturers.

Outcomes Finding of DSR will help to take the decision for further action of plan for the cluster’s needs.

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Agriculture

Implements Cluster, Malout, Distt. Mukatsar, Punjab at a total cost of Rs. 2.50 lakh and GoI grants of Rs. 2.25 lakh.

cxxvi

Agenda No.30.46 Proposal for conducting Diagnostic Study (DSR) in Agriculture

Implements Cluster, Talwanti Bhai, Dist – Ferozepur.



Name of the Cluster Agriculture Implements Cluster

Location Talwanti Bhai, Dist – Ferozepur.

Products Agriculture Implements parts.



There is a dire need for adoption of modern technology to enhance

efficiency & productivity.

Age of cluster About 45 years ago.


Profiles of units/

Category

Not available.

Turnover (per annum) Rs. 65.00 crore.



indirect)

Not available.

Presence of

association/NGO,

contact details

Not given

Main Problems of

cluster

� Finding ways & means to develop low cost strategy is the need of

hour competitiveness is the buzz word today.

� There is need for adoption of stricter emission & safety norms.

� Energy saving is another problem being faced by this cluster

which required adoption of measures to reduce consumption and

to identify key opportunities for saving by focusing of energy

intensive system.


(Rs in lakh)



development





Not available.

Justification for DSR The DSR will be elaborating the new technology for Tractor

Parts Manufacturers.

Outcomes Finding of DSR will help to take the decision for further



Committee may approve the proposal for conducting Diagnostic Study in Agriculture Implements Cluster, Talwanti Bhai, Dist – Ferozepur at a total cost of Rs. 2.50 lakh and GoI

grants of Rs. 2.25 lakh.

cxxvii

Agenda No.30.47: Proposal for conducting Diagnostic Study (DSR) in Hand Tools

Manufacturers Cluster, Ludhiana, Punjab.



Name of the Cluster Hand Tools Manufacturers Cluster


Products Manufacturing of Hand Tools (spanners, screw, drivers, testers, wrenches, pliers etc.)


Production process: blanking-forging-trimming-punching-broaching-grinding-autoshankharding-tempering-barreling-

shortblasting-Zn/Ni plating.



Profiles of units/

Category

Micro and Small- 25


Export Not mentioned.


indirect)

Not available.

Presence of

association/NGO,

contact details

M/s. Ludhiana Hand Tools Cluster (Regd.), Ludhiana.

Main Problems of

cluster

� Work force shortage.

� Efforts are required to cut the manufacturing costs.

� Efforts are required to build a modern business environment.

� Efforts are required to know lean and 5S scale.

� Need to improve product designs, tools and fixtures as to make

products globally competitive.


(Rs in lakh)






Not available.

Justification for DSR The DSR will be elaborating the new technology for Hand Tools Manufacturers.

Outcomes Finding of DSR will help to take the decision for further action of plan for the cluster’s needs.

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Hand Tools

Manufacturers Cluster, Ludhiana, Punjab at a total cost of Rs. 3.00 lakh and GoI grants of Rs. 2.50 lakh.

cxxviii

Agenda No.30.48: Proposal for conducting Diagnostic Study (DSR) in Tractors Parts

Manufacturers Cluster, Hoshiarpur, Punjab.



Name of the Cluster Tractor Parts Manufacturer Cluster

Location Hoshiarpur, Punjab

Products Cluster members comprising of small & micro manufacturing

enterprises engaged in manufacturing of tractor parts for International Tractor Limited, manufacturers of “Sonalika” tractor.

Technological details Not mentioned.



Profiles of units/

Category

Not available.


Export Rs. 50 crore (export out of total turnover)

Employment (direct / indirect)

Not available.

Association/NGO, contact details

M/s P.K Khanna & Associates, Hoshiarpur.

Main Problems of cluster

� Need for adoption of modern technology to enhance efficiency and productivity.

� For reaping the benefits of global marketing, reducing inventory costs and improving maintenance cost will meet the needs of the

market in the current business scenario. � Globalization has resulted in standards that pervade products,

product performance, manufacturing, processing and services.


(Rs in lakh)



development





Not available.


Parts Manufacturers.




Committee may approve the proposal for conducting Diagnostic Study in Tractors Parts

Manufacturers Cluster, Hoshiarpur, Punjab at a total cost of Rs. 2.50 lakh and GoI grants of Rs.

2.25 lakh.

Agenda No.30.49 Proposal for conducting Diagnostic Study (DSR) in Tractor Parts

Manufacturers Cluster, Ludhiana, Punjab


cxxix


Name of the Cluster Tractor Parts Manufacturers Cluster


Products All types of fasteners, nuts, hubs, brake drums, pins, top link ,shaft, gears, check nuts and specters etc.


Not given

Age of cluster About 40 years

No. of Units Approx. 200 units.

Profiles of units/

Category

Micro-180 and Small- 10 (Women enterprises-10)

Turnover (per annum) Approx. Rs. 150 crore.



indirect)

Not available.

Presence of

association/NGO, contact details

M/s. Ludhiana Tractor Parts Manufacturers, Association, Ludhiana.

Main Problems of cluster

� There is a dire need for adoption of modern technology. � Efforts are required to cut the manufacturing costs.






(Rs in lakh)

Description


development





Not mentioned


Parts Manufacturers Clusters.




Committee may approve the proposal for conducting Diagnostic Study in Tractor Parts

Manufacturers Cluster, Ludhiana, Punjab at a total cost of Rs. 2.50 lakh and GoI grants of Rs. 2.25 lakh.

Agenda No.30.50 Proposal for conducting Diagnostic Study (DSR) in Wire Drawing

Cluster, Ludhiana, Punjab.


cxxx


Name of the Cluster Wire Drawing Cluster


Products Production of H. B. wire products. (Wire and Wire Products from Steel Wire Rods)


Production process: Produces wire & wire products from steel wire rods.

(There is significant pollution due to acid being used in picking)



Profiles of units/

Category

Micro-228 and Small- 22 (Women enterprises-03)




indirect)

Not available.

Presence of

association/NGO,

contact details

M/s. wire Drawing Development Society, Ludhiana.

Main Problems of

cluster

� There is a dire need for adoption of modern technology.

� Efforts are required to cut the manufacturing costs.





� There is a need of software to support design material selection,

processing, testing and final validation



IA, its experience Udyog Sahayak, Deptt. of Industry, Govt. of Punjab.

Project Cost Total project cost of Rs. 2.50 lakh and GoI is Rs. 2.25 lakh



Not available.

Justification for DSR The DSR will be elaborating the new technology for Hand

Tools Manufacturers.




Committee may approve the proposal for conducting Diagnostic Study in Wire Drawing

Cluster, Ludhiana, Punjab at a total cost of Rs. 2.50 lakh and GoI grants of Rs. 2.25 lakh.

cxxxi

Agenda No.30.51: Proposal for conducting Diagnostic Study (DSR) in Foundry & General

Engg. Cluster, Phagwara (Kapurthala), Punjab.



Name of the Cluster Foundry & General Engg. Cluster

Location Phagwara (Kapurthala), Punjab

Products Diesel Engine Parts Motor parts, etc.



Not given



Profiles of units/

Category

Micro-186 and Small- 14 (Women owned-02, Owned by SC- 02)



Employment (direct / indirect)

Not available.

Presence of association/NGO,

contact details

Laghu Udyog Bharti, Phagwara.

Main Problems of

cluster

� There is a dire need for adoption of modern technology.

� Efforts are required to cut the manufacturing costs. � Efforts are required to build a modern business environment.




� There is a need of software to support design material selection,

processing, testing and final validation


(Rs in lakh)



development





Regional Centre for Entrepreneurship Development (RCED),

Chandigarh- (a Non – Govt. organization registered under

Society Registration Act.)

Justification for DSR The DSR will be elaborating the new technology for Hand

Tools Manufacturers.




Committee may approve the proposal for conducting Diagnostic Study in Foundry & General

Engg. Cluster, Phagwara (Kapurthala), Punjab at a total cost of Rs. 2.50 lakh and GoI grants of Rs. 2.25 lakh.

cxxxii

Agenda No. 30.52: Soft Interventions in Printing & Packaging Cluster, Ludhiana





Products Printing boxes, folding carton corrugated boxes, text & religious

books, catalogues & price list, labels, price tags, stationery goods, posters, greeting & wedding cards and calendars etc.


Computerization is rapidly taking place in the field of printing. Computer to plate (CtP) is an imaging technology used in modern

printing process. In this technology, an image created in a Desktop Publishing (DTP) application is output directly to a printing plate.


No. of Units 600 units (450 Micro and 150 Small)

Profiles of units/

Category

SC/ST – 10, Woman – 05, Minority – 50


Export Rs. 50 crore


indirect)

22000 nos. (Direct12000 –and Indirect –10000)

Presence of

association / NGO,

contact details

Offset Printer’s Association, Ludhiana

Whether DSR

conducted. Main

outcomes of DSR

Yes.

• Up-gradation of technology by adopting techniques like CtP, CtM,

waterless offset printing, automatic post press machines, packaging

and online quality control system will improve the quality of products.

• MDP on marketing, inventory control, production management and

latest manufacturing techniques will help to overcome deficiencies

in managerial and technological skills.

Main Problems of

cluster • Raw market is under development.

• Absence of sufficient testing facilities

• Organized marketing channel are not available

• Technological obsolescence resulting in underutilization of capacity

• No quality control techniques used

• Lack of trained technical/skilled persons

• Lack of market and product diversification.

• Stiff competition from other nearby clusters..

• Weak linkage between SMEs and institutions.

• Insufficient managerial skills. Generally they could not perform

better in the field of finance, marketing and quality control.

Need for CFC, if any Establishment of CFC consisting of Testing Laboratory, training,

Repair & maintenance and Research & Development will give a great boost towards technological development.


(Rs in lakh)

cxxxiii

Proposed by IA Comments by Cluster Division


cluster development

Udyog Sahayak, Deptt. of

Industry, Govt. of Punjab

Activities Proposed




• Trust Building.

• Awareness Building on

seminars on Cluster

Development Programme





by the stakeholders

Yes


GoI contribution: Rs.16.01 lakh. Cluster units/association: Rs.

7.84 lakh.



MSME-DI, Ludhiana.

Justification for


Soft interventions will help to

build up the awareness among the cluster actors. Participants will be

benefited by improving their quality systems. The training

programme will give exposure to the cluster actors on better

technology, cost reduction and

quality improvement.






others

S.

No

Particulars Before

Interventions

After

Interventions

1. No. of units 600 nos Not available.

2. Turnover Rs. 1000

crore. Not available.

3. Export Rs. 50 crore Not available.

4. Employment 22000 nos Not available.



lakh for duration of 18 months with GoI contribution of Rs. 16.01 lakh and the remaining Rs. 7.84

lakh to be contributed by cluster units / association.

cxxxiv

Agenda No.30.53: Proposals for In –Principle approval for up-gradation of Infrastructure

Facilities at Focal Point, Ludhiana.


a. Proposals received from Industries and Commerce Department, Govt.

of Punjab.

b. Location of site Phase-V, Focal Point, Ludhiana

c. Whether appraised DPR with

approved layout plan received or not

Not

(DPR is not as per the MSE-CDP guidelines)

d. Total Area of industrial estate/ area

(acre)

Area of Phase-V is not given.

(Total area of Focal Point Industrial Estate-1450 acres)

e. Area to be developed (acre) Area of Phase-V is not given.

f. Number and sizes of plots to be developed

Not given.

g. Implementing Period 24 months

h. Other ID projects sanctioned in same


Nil

i. Performance of ID projects in state. 03 projects completed.


Description Comments, if any

a. Implementing Agency (IA): Municipal Corporation,

Ludhiana.

b. Track Record of the IA Not given


(Observations and

recommendations). Attach SIDBI

report.

Not received


available at site. (Proximity to

railway stations / state highways,

availability of water supply,

adequate power supply, telecom


workers)

yes

e. Whether land is in possession in

the name of IA with Clear Title

yes

f. Whether Zoning regulations and

non-agricultural conversion etc

complied with

Not Available

g. Whether State Level Committee to coordinate and monitor

progress has been Constituted

Not Available

h. Whether confirmation received

form IA that it will meet the cost in excess of approved project cost

Not Available

cxxxv

and any escalation in cost.

i. Basis of elements of project Cost Not given

j. Tangible Outcomes of the project Not given

k. Justification of the Proposal The ever-increasing number

of industries is causing

tremendous pressure on the

basic service and

infrastructure.

3. Project Cost: (Rs. Lakh)

Particulars Amount

proposed

As per MSE-CDP

guidelines

i. Laying roads 683.50 200.00

ii. Drainage 362.20 60.00

iii. Power distribution, Street light

arrangements, etc.

71.97 71.97

iv. Total 1117.67 331.97

4. Means of finance:

Particulars Amount (Rs in lakh)

i. GoI Grant under MSE-CDP 331.97

ii. State Government Not given

iii. IA (Municipal Corporation, Ludhiana.) Not given

Total

5. Shortcomings:

i. SIDBI Appraisal report

ii. Land documents.

iii. DPR of the project is not as per MSE-CDP guidelines. Information like area to be developed, tangible Outcomes of the project, plot developed, funding pattern, etc

iv. State Level Committee constitution. v. Confirmation of State Govt. contribution

6. Proposal for the Consideration of the Steering Committee: Cluster division

recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State Government within 6 months, failing which the proposal shall be dropped. Steering

Committee may approve in principle approval for the up-gradation of Infrastructure Facilities at Focal Point, Ludhiana.

cxxxvi

Agenda No. 30.54: Proposal to set up Common Facility Service Centre in Agricultural

Implements Cluster, Shornur

Industries & Commerce Department, Govt. of Kerala has submitted a proposal for setting up of

Common Facility Service Centre, Tool Room and Training Centre in Agricultural Implements

Cluster, Shornur. Salient features of the cluster and the proposal are as follows:


a. Name of the cluster Agricultural Implements Cluster


of cluster

Industrial area Shornur, Palakkad District.

c. Products of the cluster Agricultural Implements of various types, surgical

instruments, cutlery etc.



small, medium)

130 nos.


the last five years

Rs. 43.20 crore


the last five years

Not available.

g. Employment in Cluster 3000 nos. (Direct – 2000 and Indirect – 1000)

h. Technological Details Products are manufactured by open forging using

pneumatic hammers or by age old smithy operations.

Quality of product depends upon skill of operator. This

technology is suitable for large objects or when the no. of parts produced is small and it is not suitable for

making products to close tolerance. Cutting operations of raw materials are done manually. Rail and Billets are

cut by a process of marking, heating and hammering. Heat treatment is also done for some products.


j. Main findings of DSR • There is need for common branding and focus on international market. The cluster products reach to

at least 10,000 outlets especially rural areas across

the country.

• Testing facilities for raw material and finished goods are required.

• CAD/CAE software required.

• Project variation is required as per national and

international standards.

• Resolve the human attrition and skill shortage

through setting up common training centre.

k. Main Problems of cluster • Lack of training and skill upgradation.

• Un-scientific methods followed.

• Poor marketing linkages.

• Absence of critical machinery.

• Poor finishing, productivity and use of crude

technology.

• Lack of adequate supply of raw materials.

l. Other information, if any Nil

cxxxvii



any

a. Location of CFC Vill – Shornur – I, Taluk – Ottapalam,

District – Palakkad.

b. Land for CFC

Weather land acquired (page - 64-65/cor.)

1 acre Land for proposed CFC has been allotted on hire purchase by DIC,

Palakkad to SPV on 18.5.09. Cost of land is Rs. 16.00 lakh and SPV has

paid Rs. 1.60 lakh. Remaining amount will be paid in 10 equal

annual installments along with interest.

Title is in name of Registry in name of SPV is not

available.

Required

Valuation and its basis Land on hire purchase basis from

State Govt.

Land is sufficient Yes.

Change of land use Land has been allotted by Industries

Department.

If on lease, duration of

lease


Whether lease is legally

tenable

Not applicable.

c. Total Building area (sq ft)

Not available.

d. Rate of construction of building

Not available.

e. Major Outputs of CFC, Projected performance

of cluster after setting up of CFC

Before setting up of CFC

After … years of CFC

Production (Rs in cr) Not available. Not available.

Export (Rs in cr) Not available. Not available.

Employment (nos) 3000 Not available.

Others like no of

ISO, etc

Not available. Not available.

f. Pollution clearance

required or not

Required.

g. Main facilities

proposed • Heat Treatment Plant.

• Shearing machine.

• Dye forging hammer.

• Power Hammer.

• Trimming Press.

• Size Rolling machine.

• Oil Furnace.

• Plasma cutting machine.

• Rubber Moulding machine.

cxxxviii

• Plastic Injection machine.

• Powder Coating machine.

h. Prod capacity of CFC The CFC is meant to be used by the

cluster members as doing job work.

i. Man power in CFC 95 nos.

j. Revenue mechanism

for sustainability of

CFC (by user charges,

etc)

Revenue is estimated from job work and

training centre, as Rs. 604.04 lakh at

100% capacity utilization.

k. Estimated net profit for

1st & 2

nd year.

1st Year – Rs. 76.51 lakh

2nd

Year – Rs. 88.14 lakh



a. Name and address “Shornur Agricultural

Implements Consortium Pvt.

Ltd.”, Industrial Estate, Shoranur – 679122

b. Nature of SPV (company or Society or

Trust)

Private Limited Company


and MSME officials in SPV

Not available.

d. Date of formation of SPV

16.09.2004

e. Number of MSE

Member Units

43 nos.


AoA submitted

Received.

g. Authorized share

capital

Rs. 10.00 lakh.

h. Shareholding Pattern Rs. 10,00,000/- contributed by

28 members and all are having

shares less than 10%.


contribution

Not received. Required

j. SPV specific A/c Not available. Required




pursued by SPV

members with

documentation

Available.

l. Technical Institution Not available.

m. CFC may be utilised by SPV members as also

others in a cluster. Evidence FOR SPV

members’ ability to

Not available.

cxxxix

utilise at least 60% of

installed capacity


Power Not available.

Water Not available.

Gas/Oil/ Other Not available.

4 Project Cost:

(Rs. in lakh)

Particulars Amount

1 Land 16.00

2 Building 80.00

3 Plant & Machinery (including installation and electrification) 365.03


5 Preliminary & Pre-operative expenses, maximum 2% of project

cost

9.00



Total 499.70


(Rs. in lakh)



2. Grant-in-aid from Govt. of India 70% 349.80

3. Grant-in-aid from State Govt. 20% 99.93

Total 100% 499.70

6. Financial Analysis of CFC:


a. BEP 31.44% As per guidelines

b. IRR, payback period 27.72% As per guidelines

c. DSCR -

d. Return on Capital

employed (ROCE)

27.34% As per guidelines

e. NPV Rs. 554.18 lakh As per guidelines

f. DER -

g. Sensitivity Analysis Holds good As per guidelines

7. Plant and Machinery

(Rs in lakh)

Description No. Amount

Training Centre

1 Shaping Machine 1 3.00

2 Duty lathe 1 3.00

3 Power hammer 1 8.00

4 Power hammer (for cutlery forging) 1 3.00

cxl

5 Drop Forging Hammer 1 20.00

6 Trimming Press 1 5.00

7 Oil furnace 1 10.00

8 Flexible Grinder 1 0.08

9 Hand Grinder 1 0.08

10 Welding Machine 1 0.30

11 Grinding Machine 1 0.13

12 Generator Set 1 4.00

Tool Room

1 Milling Machine 1 3.00

2 Drilling Machine-Portable 1 0.10



5 Power band saw 1 30.00

6 Flexible Grinder 1 0.08

7 Hand Grinder 1 0.08

8 Vertical Machinery Centre 1 65.00


Common Facility Centre

1 Heat Treatment Plant Oil Fired 1 30.00

2 Power Hammer 1 18.00

3 Shearing Machine (for rail & leaf cutting) 1 8.00

4 Power Hacksaw (for billet cutting) 1 5.00

5 Closed Dye forging Hammer 1 30.00

6 Trimming Press 1 10.00

7 Size Rolling Machine 1 20.00


9 Rubber Moulding Machine 1 4.00

10 Plastic Injection Moulding 1 2.00

11 Powder Coating Plant 1 6.00


13 Knife Sharpening machine 1 2.00

14 Oil furnace 1 10.00

15 Plasma Cutting Machine with Compressor 1 2.00

16 Crane 1 5.00

17 Pick-Up 1 4.50


Total 320.04


Description As per proposal Remarks,

if any

a. Implementation Agency Kerala Bureau of Industrial

Promotion (KBIP)

b. Commitment of SPV

contribution

Not available.

c. Commitment of State


Available.

d. Commitment of Loans

(Working capital and/ or term

Received.

cxli

loan)

e. Implementation Period 24 months


recommendations

SIDBI appraisal has been

requested from State Govt.

vide letter dated 29.08.11 –

Appraisal awaited.

g. Comments of Technical

Division

h. Approval of Technical

Committee

9 Comments of Cluster Development Division: Since appraisal report from SIDBI, Project

Specific Account of SPV, Registry of land in the name of SPV and some other details are not

available, the proposal for setting of CFC in the cluster may be considered for in –principle

approval only.

10. Proposal for the Steering Committee: Cluster division recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State Government within 6

months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for setting up of Common Facility Centre (CFC) to accord in-principle approval.

cxlii


Centre for Soft Toy Cluster, Kottayam under MSE-CDP.

Industries & Commerce Department, Govt. of Kerala has submitted a proposal for In-Principle

approval for setting up of CFC in Soft Toy Cluster, Kottayam. Salient features of the cluster and



Soft Toy Cluster

2. Location Kottayam

3. Products Soft Toys

4. Age of the cluster 10-15 years old.

5. No. of Units 343 nos. (300 artisans based units & 32 registered

units)

6. Type of units 32 SSI units.


NGO

Mother Toys Consortium Pvt. Ltd.,

8. Recommendation in the DSR The benchmark study conducted in the cluster

recommended for setting up of Skill Upgradation

Training Centre.


cluster

Soft interventions has been taken up by Kerala

Bureau of Industrial Promotion (K-BIP)

10. Formation of SPV Mother Toys Consortium Pvt. Ltd.,

Palamattom Building, Gandhinagar P.O., Kottayam with 32 members.

11. Employment Not available.

12. Turnover Rs. 122.76 lakh

13. Implementing Agency Directorate of Industries & Commerce, Govt. of Kerala.

14. Problems of the cluster • Low skills and workmanship

• Poor designs.

• Very high cost of raw material reducing

profitability.

• Absence of quality control for customer satisfaction.

• Lack of use of technology leading to poor quality of products and higher cost of labour.

• Low awareness of export procedures and documentation.

• No linkages with banks and other financial institutions like SIDBI, NSIC etc.

• Less number of units for mass production.

15. Need for CFC The CFC will provide facilities for Designs/patterns,

pattern cutting, fibre filling, fixing of eyes & nose,

testing of toys on commercial basis and a training

center.

cxliii



(Rs. in lakh)

1. Land 20.80

2. Building 18.05


4. Furniture & Fixtures 6.00

5. Vehicle for pick-up &

distribution

5.45

6. Preliminary & pre-

operative expenses

3.00

7. Provisions for

contingencies

2.22

8. Working Capital 5.68

Total 99.23

17. Proposed Means of Finance


in lakh)

1.

SPV contribution

10 9.92

2

.

Grant-in-aid

from Govt.

of Kerala

20 19.85

3

.

Grant-in-aid

from Govt. of India

70 69.46

Total 100 99.23

Short comings in the proposal:

• List of SPV members along with their contribution is not available.

• Project Specific Account in Schedule A Bank is not available.

• As per provision of guidelines, DPR need to be appraised by SIDBI.

• Memorandum and Articles of SPV is not available.

Proposal for consideration of the Steering Committee:- The Committee may consider the

proposal for In-Principle approval for setting up of CFC in Soft Toy Cluster, Kottayam, Kerala.

cxliv

Agenda No. 30.56: Proposal to set up Common Facility Centre (CFC) for Printers Cluster,

Kannur

Industries & Commerce Department, Govt. of Kerala has submitted a proposal for setting up of

CFC in Printers Cluster Cluster, Kannur. Salient features of the cluster and the proposal are as

follows:

1 Basic information of cluster

a. Name of the cluster Printers Cluster, Kannur

b. Location of cluster/ spread

of cluster

Kannur - Kerala

c. Products of the cluster Offset printing & training

d. No. of enterprises


small, medium)

Total – 2645 ( Micro – 2635, small 10 medium –nil)


years

Rs 35 cr.


the last five years

Nil

g. Employment in cluster 1200 (looks inappropriate vis-à-vis

number of units )

h. Technological details Four colour and web offset

i. Whether DS conducted Yes

j. Main findings of DSR • Offset printing industry is one of the growing

industries since last 20 years

• There is ample scope for development and importance of the cluster

• It is basically a contract/job based industry

• Low labour productivity

• Shortage of skilled labours and advanced

machinery

k. Main problems of cluster Low productivity

Price Competitiveness from Sivakasi Use of old and obsolete technology and machinery

Lack of professionalism

Shortage of skilled labours and advanced machineries

l. Other information, if any Nil

2 Information about proposed CFC


any

a. Location of CFC Kannur district

b. Land for CFC

Weather land acquired Kannur municipality have already

sanctioned in their meeting to allot 20

cents of land for CFC on lease basis –

they will allot the same by end of April

2012

Documents

required.

Title is in name of Not available

Valuation and its basis 5 lakh

cxlv

Land is sufficient Yes

Change of land use No


lease

15 years

Whether lease is

legally tenable

--

c. Total building area (sq

ft)

10,000 sq feet


building

Rs 90 lakh

e. Major outputs of CFC,

Projected performance

of cluster after setting

up of cfc

Before setting up

of CFC

After 10

years of CFC

Production (rs in cr) 35 53

Export (rs in cr) Nil 20

Employment (nos) 1200 3500

Others like no of

ISO, etc

Nil 50


required or not

Not required

g. Main facilities

proposed

Printing technology training,

international quality of printing for the

cluster members

h. Prod capacity of CFC Rs 10 cr

i. Man power in CFC 39

j. Revenue mechanism

for sustainability of

CFC (by user charges,

etc)

2.71 cr from training

1.18 cr. from user charges


1st & 2

nd year.

1st year -(-17.5 lakh) and

2nd

year - 8.43 lakh

3 Information about spv


any

a. Name and address North Malabar Offset Printers

Consortium Pvt. Ltd., k.m. complex,

near municipal bus stand, Kannur 1,

Kerala

b. Nature of SPV

(company or society or trust)

Private Ltd.

c. Name of the state govt. and MSME officials in

SPV

Mr. Kanakambaran – GM, DIC, Kannur from state govt. and Mr.

Nambeesan – asst director MSME-DI, Thrissur is from MSME.

d. Date of formation of SPV

16.11.2007

e. Number of MSE 33

cxlvi

member units

f. Bye laws or MoA and

AoA submitted

Yes

g. Authorized share capital Rs 10 lakh

h. Shareholding pattern Not available Required


contribution Not available Required

j. SPV specific a/c Not available Required


previous track record of co-operative initiatives

pursued by spv

members with

documentation

Members are working together last

15 years, already one raw material bank is running profitably since

1996. Apart from the above, CFC

members have already started one

designing centrre for cluster

members in Kannur. Most of

members are availing facility of

designing it is also running

profitably. SPV has conducted 3

different batches of training to

printing labours in small scale

jointly with Kannur university &

Calicut university for training.

l. Technical institution NTTF (Nettur Technical Training

Institute) leading training institute in

South have already agreed to work

together and syllabus for printing training is also ready. Approval

from Kannur university is expected.

m. CFC may be utilised by

SPV members as also others in a cluster.

Evidence for SPV members’ ability to

utilise at least 60% of installed capacity

Not Available


Power 316 kw

Water 1000 ltr

Gas/oil/ other 10 ltr oil

4 Project Cost:

Particulars Amount

1 Land and its development (lease) 5,00,000

2 Building & other civil constructions 90,00,000

3 Plant & machinery (including electrification) 8,18,50,000

4 Misc. Fixed assets 13,00,000

5 Preliminary & pre-operative expenses, maximum 2% of

project cost

5,00,000

6 Contingency (2% building and 5% on plant and machinery) 46,32,500

7 Margin money for working capital 20,00,000

cxlvii

Total 9,97,82,500

5. Means of finance:

(Rs. In lakh)


1. SPV contribution 10 99,78,250

2. Grant-in-aid from govt. of India 70 6,98,47,750

3. Grant-in-aid from govt. of Kerala 20 1,99,56,500

4 Bank loan/ others Nil

Total 9,97,82,500

6 Financial analysis of CFC:


a. BEP 23.77

b. IRR, payback period 9.34

c. DSCR Nil

d. Return on capital employed

(ROCE)

Not Available

e. NPV Not Available

f. DER Not applicable

g. Sensitivity analysis Not available

7. Plant and machinery

Description No. Amount

1 4 colour d/dy. sheet fed offset 1 4,50,00,000.00

2 Multi colour web offset machine 20 pages 1 1,60,00,000.00

3 Single col.d.dy sheet fed offset 1 15,00,000.00

4. Computer to Plate Machine 1 75,00,000.00

5 Programmable cutting machine 43” 1 15,00,000.00

6 Semi automatic cutting machine 43” 1 3,00,000.00

7 Perfect binding machine 1 14,00,000.00

8 Folding machine d/ demy size 1 13,00,000.00

9 Lamination machine 1 3,00,000.00

10 Thread stitching machine 1 3,50,000.00

11 Wire stitching machine 1 1,00,000.00

12 Plate exposing machine 1 3,00,000.00

13 Card punching machine 1 5,00,000.00

14 DTP system - 10,00.000.00

15 Sticker cutting machine 1 3,00,000.00

16 Generator 1 15,00,000.00

17 Knife grinding 1 5,00,000.00

Electrification 25,00,000.00

Total 8,18,50,000.00

8 Implementation arrangements


a. Implementation agency KBIP, Trivandrum

cxlviii

b. Commitment of SPV

contribution

Not Available Required

c. Commitment of state

government contribution

20% of the project cost

already approved

d. Commitment of loans

(working capital and/ or term

loan)

Nil

e. Implementation period 2 year


recommendations

Project already

submitted to SIDBI -

Appraisal report awaited

Appraisal

required

g. Comments of technical

division

Technical Division

suggested revising the

DPR by incorporating

generation of revenue from training activities

also. Modifications made in the revised DPR.

9 Shortcoming

i. Land documents ii. Project specific account

iii. Commitment about SPV contribution, iv. Details for 60% utilization of CFC by SPV members

v. Appraisal report from SIDBI

10. Proposal for the steering committee: Cluster division recommends the proposal for ‘In-



proposal for setting up of Common Facility Centre (CFC) to accord in-principle approval.

cxlix

Agenda No. 30.57 : Proposal for extension of time limit for submission of setting up of 7

Infrastructure Development (ID) centres in Andhra Pradesh

Leather Industries Development Corporation of Andhra Pradesh Ltd. (LIDCAP),

Hyderabad has requested for extension of time limit for submission of setting up of 7

Infrastructure Development (ID) centres in (1) Jinkunta, Mahaboobnagar; (2) Ghanpur (Stn) ,

Warangal; (3) Mallemadugur , Khammam; (4) Armoor, Nizamabad; (5) Mandamarri, Adilabad;

(6) G.D. Nellore, Chitoor; (7) Rukmapur, Karimnagar. LIDCAP is the implementing agency for

the projects.

2 In-principle approval for these 7 centres with Rs 5 lakh each for preparation of DPRs was

accorded in the 23rd

SCM held on 23.08.2010.

3 Rs. 17.50 lakh (50% of sanction grant of Rs. 35.00 lakh) was released to LIDCAP on 30.06.11 with condition that DPRs of the ID centres would be completed within three months

from the receipt of sanction letter and DPRs should be prepared as per MSE-CDP guidelines, duly appraised by SIDBI. Appraised DPRs have not been received by this office. The time limit is

already over on 30.09.11.

4 LIDCAP has informed that title deed in favour of LIDCAP is expected to be completed by

July 2012 and requested for extension of time for a period of 6 months for submission of DPRs.

5. Proposal for Steering Committee: Cluster Division recommends the proposal. Steering

Committee may consider the proposal for extension of time limit upto 30th September 2012 for

submission of appraised DPRs by LIDCAP.

*****

cl

cli

Agenda No.30.59 Proposal for conducting Diagnostic Study (DSR) in Agarbati

Manufacturing Cluster at District Gaya, Bihar

Proposal has been received from MSME-DI, Patna on 7-3-2012.


Name of the Cluster Agarbati Manufacturing Cluster

Location Gaya, Bihar

Products Semi finished Agarbati without scent and finished agarbati.






Profiles of units/

Category

Micro - 32

Turnover (per annum) Rs. 2 to 3 crore per annum.

Export Information not available.


indirect)


Presence of

association/NGO,

contact details

M/s. Budha Agarbati Nirmata Sangh, Fatma Cottage Road No. 14B,

Aliganj, Gaya - 823001.

Main Problems of

cluster

� Unorganized, lack of knowledge of the latest technology and

market networking.

� The cluster actors are required to be trained with latest technology

in Agarbati manufacturing by organizing capacity building

training programmes under soft intervention of the cluster

development process.

� Introduction of information and communication technology by

developing web portal, e-catalogue, e-commerce and networking

the cluster portal at National level in order to outreach the cluster

into global market etc.




MSME-DI, Patna

Project Cost Rs. 1.00 lakh




Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Agarbati

Manufacturing Cluster at District Gaya, Bihar at a total cost of Rs. 1.00 lakh and GoI grants of Rs. 1.00 lakh.

clii

AGENDA

for

30th STEERING COMMITTEE MEETING

of

MICRO & SMALL ENTERPRISES -

CLUSTER DEVELOPMENT PROGRAM (MSE-CDP)

(Vol.-II)

DATE : 22 March 2012

TIME : 11:00 a.m.

VENUE : Room No. 701, Nirman Bhawan

New Delhi

MINISTRY OF MICRO, SMALL & MEDIUM ENTERPRISES,

OFFICE OF DEVELOPMENT COMMISSIONER (MSME)

NIRMAN BHAWAN, NEW DELHI

cliii

INDEX

Agenda Description Page

Maharashtra

30.60 Setting up of CFC for Auto & Engineering Cluster, Ahmednagar 1

30.61 Setting up of CFC for General Engineering & Allied Cluster, Bhosari, Pune 7

30.62 Setting up of CFC for Mango Processing Cluster, Ratnagiri 13

Tamilnadu

30.63 Setting up of CFC for Rice Mill Cluster, Thanjavur 18

30.64 Setting up of CFC for Engineering Cluster, Dindigul 24

30.65 Setting up of CFC for Refractory Cluster, Vridhachalam 29

30.66 Setting up of CFC for Stainless Steel Utensils Cluster, Kumbakonam,

Thanjavur

34

30.67 Setting up of CFC for Engineering Cluster, Ambattur 40

30.68 Setting up of CFC for Plastic Cluster, District Madurai, Tamilnadu 45

30.69 Setting up of CFC for Engineering Cluster, Paramakudi, Ramanathanpuram 50

30.70 Setting up of CFC for Plastic Cluster, Chennai, Kancheepuram 54

30.71 Setting up of CFC in Lorry Body Building Cluster, Namakkal, 59

30.72 Setting up of CFC in Engineering Cluster, Perungudi, Tamilnadu 61

30.73 Setting up of CFC in Pharma (MICAL) Cluster, Chennai 63

30.74 Setting up of CFC in Rice Mill Cluster, Kangayam, Tiruppur 65

30.75 Setting up of New Industrial Estate at Mathur, Pudukkottai 67

30.76 Setting up of New Industrial Estate at Virudhunagar (Urban), Virudhunagar 70

Karnataka

30.77 Setting up of CFC for Auto Cluster, Bidar 73

30.78 Setting up of CFC for Textile Cluster, Rabakavi, Banahatti, Bagalkot 80

30.79 Setting up of CFC for Heat Treatment and Engineering Cluster, Hubli 82


Assam

30.81 Infrastructure Development (ID) at Pathshala, District – Barpeta 85

30.82 Soft Interventions in Bell Metal Cluster, Sarthebari Barpeta District 88

Odisha

30.83 Setting up of CFC in Cashew Cluster, Neelachakra, Brahmagiri, Puri 90

30.84 Setting up of CFC in Cashew Cluster, Ganjam, Odisha 92

30.85 Proposals for development of six clusters in Odisha 94

Uttar Pradesh

30.86 Soft Interventions in Artificial Jewellery Cluster, Meerut 95

30.87 Setting up of CFC for Stainless Steel, Brass & German Silver Utensils Cluster,

Mirzapur

97

30.88 Setting up of CFC for Carpet & Durri Industry Cluster, Shahjahanpur 99

30.89 Setting up of CFC for Wollen Duree Cluster, Jaunpur 101

30.90 Setting up of CFC for Textile Printing Cluster, Pilakhua, Ghaziabad 103

30.91 Setting up of CFC for Brassware Cluster, Moradabad 105



30.94 Setting up of CFC for Chikankari Cluster, Barabanki 111

30.95 Setting up of CFC for Fan Cluster, Varanasi 113

1

Agenda No. 30.60: Proposal to set up Common Facility Centre (CFC) for Auto &

Engineering Cluster, Ahmednagar, Maharashtra

Directorate of Industries, Govt. of Maharashtra has submitted a proposal for setting up of CFC in

Auto & Engineering Cluster, Ahmednagar, Maharashtra. Salient features of the cluster and the



m. Name of the cluster Auto & Engineering Cluster

n. Location of Cluster

(P. 6 of the DPR) Ahmednagar, Maharashtra

o. Products of the cluster

(P. 7 of the DPR)

Jigs and fixtures manufacture (aluminum extrusion dies,

press tools), electrical components, motors, sugar mill

machinery and equipments, forgings and casting & auto components (gears, shafts, sheet metals components,

fasteners) etc.

p. No. of Enterprises


(P. 7 of DPR)

421 units (MNC and Large – 7, Medium – 8, Small –

185 & Micro – 221)

q. Turnover (Rs in crore) for

the last five years (P. 11 of DPR)

Rs. 700 Crore

r. Exports (Rs in crore) for the last five years

(P. 3 of DPR)

Rs. 150 Crore (directly and Indirectly).

s. Employment in Cluster

(P. 9 of DPR)

7952 Nos. (Direct employment by MSMEs)

3050 Nos. (Direct employment by large units) 10,000 Nos. (Indirect employment estimated)

t. Technological Details (P. 12 of DPR)

Technologies used by the cluster units are conventional and age old employed in the process of designing the

system particularly in casting, forging and fabrication units. The fabrication units are using conventional as

well as recent techniques. The machining units are

employing conventional machine tools but some have

installed CNC.

u. Whether DS conducted and

validated.

Diagnostic Study was validated on 18.5.2009.

v. Main findings of DSR Interventions towards innovation and technology up -

gradation, collective efforts to promote common brand,

a modern CFC.

w. Main Problems of cluster • Lack of trust among the cluster units.

• Slow technology up-gradation.

• Absence of product benchmarking & focus on R&D

facilities.

• Availability of raw materials from limited sources.

• High inventory cost.

• Lack of trained manpower for plant maintenance.

• No skill up-gradation training for workers.

x. Other information Technical support has been assured from Dr. Vithalrao

Vikhe Patil College of Engineering, MIDC,

Ahmednagar

2



a. Justification for CFC The requirement of CFC has

been emphasized in the

Diagnostic Study Report.

b. Location of CFC Ahmednagar, Maharashtra As per SIDBI appraisal, site is well connected by road and is

about 120 KM from Pune on Pune – Aurangabad road.

c. Land for CFC Weather land

acquired Title is in name of

Valuation and its basis

Land is sufficient

Change of land use

If on lease, duration

of lease

Whether lease is

legally tenable

(P. 29 of the DPR)

2.00 acres Yes.

-

Yes

-

N/A

N/A

As per SIDBI appraisal, SPV has already acquired land

admeasuring 8067 sq. mtr. from MIDC on lease for 95

years.

d. Total Building area

(sq ft) (P. 29 of

DPR)

Area 44169.8 sq. ft. in 2 acre

land situated at Plot No. G 47/5

MIDC, Ahmednagar

e. Rate of construction

of building

(P. 29 of the DPR)

Estimated Cost Rs 397.53 lakh,

Rs 900 per sq ft

f. Main facilities

proposed (P-13-14

of DPR)

� Comprehensive Testing &

Quality Control lab.

� Training centre for new

labour/ staff.

� Research & Development

facility. � Advanced SPMs for automatic

integration. � Incubation centre.

� Tool Designing facility. � Common Raw Material Bank

& Common Marketing Centre � Display / Show room /

Visitors place. � Documentation and

information dissemination

centre.

g. Major Outputs of

CFC, Projected

performance of the

cluster after setting

up of CFC in terms

of production, export

Not given in terms of qualitative

and quantitative with time limit.

3


and employment, etc

h. Pollution clearance

required or not

NOC required.

i. Man power in CFC

(P. 35 of the DPR)

31 nos.

j. Estimated net profit

for 1st & 2

nd year. (P-

38 of DPR)


2nd


---



p. Name and address M/s. Ahmednagar Auto &

Engineering Association, C/o

Anipra Chemicals, Plot No. B-

38, MIDC, Ahmednagar –

414111, Maharashtra

----

q. Nature of SPV

(company or Society or Trust)

Private Company Limited.

r. Name of the state

Govt. and MSME

officials in SPV

- One State Govt Official is

required to be included in SPV

s. Date of formation of

SPV

18th

March 2010. --

t. Number of members 78 nos.

u. Bye laws or MA and

AoA submitted

Yes

v. Authorized share

capital ( as per AoA)

Rs. 95.00 lakh divided into 380

equity shares of Rs. 25000/-

each.

In SIDBI appraisal it is

mentioned that the authorized

capital is increase to Rs. 2.50

crore divided into thousand

equity share of Rs. 25000/-

each

w. Shareholding Pattern Given in SIDBI appraisal report

x. Commitment letter

for contribution

Not given State Govt. and SPV

commitment required.

y. SPV specific A/c Information not available. Details required.

z. Trust building of

SPV, Previous track

record of co-operative initiatives

pursued by SPV members need to be

highlighted with support

documentation

Soft interventions under taken

by Directorate of Industries,

Govt. of Maharashtra under MSE-CDP during 2009-10 with

GoI of Rs. 7.20 lakh.

aa. Technical Institution Support has been assured from

Dr. Vithalrao Vikhe Patil College of Engineering, MIDC,

--

4


Ahmednagar.

bb. CFC may be utilized

by SPV members as

also others in a

cluster. However,

evidence should be furnished with regard

to SPV member ability to utilize at

least 60 per cent of

installed capacity. (P-

44 in the DPR)

The capacity utilization is at

25% first year, 50% during

second year, 65% third year and

75% fourth year 80% fifth year

85% year onwards

Consent to utilize atleast 60%

of installed capacity required.

cc. (b) Power

requirement for commercial/

domestic purpose (P-

43 of the DPR)

(c) Water

(d) Gas/Oil/ Other

utilities

200 KVA

--

--


Description By Implementing/

recommending Agency

Remarks, if any

e. Implementation

Agency

Industries Department, Govt of

Maharashtra

Should be MIDC,

Maharashtra

f. Implementation Period

(P- 45 of DPR)

15 months from the date of receive of

sanction of grant under MSE-CDP. The CFC should be

operationslised within

two years from the date

of final approval.

g. Appraisal of DPR and


SIDBI appraisal mentions that project

is technically feasible and financial

viable. SIDBI has approved the

project with some terms and

conditions given in the Annexure –

I.

h. Comments of

Technical Division

The proposal needs to be prepared as

per requirements of the units in the

cluster. The present activities of the

cluster, problems being faced by the cluster and the vision of the

CFC/Cluster needs to be properly described in the proposal. The criteria

for selection of machines for the CFC is not clearly given. More elaboration

is required on the aspect as to how the present requirements of cluster

are being met and how the CFC will

increase the efficiency, productivity,

State Govt has been

communicated vide

letter dtd 20.1.12. No

response received so far.

5


recommending Agency

Remarks, if any

employment and export etc, after

setting up of CFC. The functions of

each m/c & equipment and the

present source of availing such

services have also not been described.

The identified machines indicate that

the CFC will run as a commercial

center as a competitor to the SME

units.

� SPV/IA to submit the

proposal with exact need of the cluster and justification.

5. Financial Analysis of CFC (P-42 of the DPR) :

Remarks,if any

r. IRR, payback period 32.95% Highly viable

s. DSCR 3.34

t. Return on Capital

employed (ROCE)

28.46%

u. NPV Net Present Value of the project

is positive.

v. DER N/A

w. Sensitivity Analysis (SIDBI appraisal P/25)

BEP 19.45% and ROCE 42.92%

x. Working capital (In-

principle sanction of loan

from a bank, if applicable

arrangement made)

In-principle given by Bank of

Baroda, Pune for Term loan of

Rs 2.50 cr. No information on

working capital.

6. Project Cost: (P – 37 of DPR): (Rs. in lakh)

Particulars Amount

1 Land and site development 46.00

2 Building 397.53

3 CFC Equipments, Plant & Machineries 983.89

4 Furniture & Fixtures 50.00

5 Pre-operative expenses, maximum 2% of project cost 17.56


7 Contingencies Plant & Machinery 49.19

Total 1552.12





3. Grant-in-aid from Govt. of Maharashtra 9.66 150.00

4 Bank Loan/ others 12.89 200.00

Total 100.00 1552.00

6

8. Plant and machinery Annexure - II

9 Shortcomings i. SPV Specific Account

ii. State Govt. and SPV commitment

iii. Major Outputs of CFC in quantitative terms iv. Consent to utilize atleast 60% of installed capacity by SPV members

10 Proposal for the Steering Committee: Cluster division recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State Government within 6

months, failing which the proposal shall be dropped. Steering Committee may consider the proposal of in-principle approval for setting up of CFC for Auto & Engineering Cluster,

Ahmednagar.

7

Agenda No.30.61 Proposal to set up Common Facility Centre (CFC) for General

Engineering & Allied Cluster, Bhosari, Pune, Maharashtra

Directorate of Industries, Govt. of Maharashtra has submitted a proposal for setting up of

CFC in General Engineering & Allied Cluster, Bhosari, Pune, Maharashtra. Salient features of the



a. Name of the cluster General Engineering & Allied Cluster

b. Location of Cluster Bhosari, Pune, Maharashtra

c. Products of the cluster

(page no. 21-22 of DPR)

Machine/Auto Components: Two wheelers Sprockets,

handles, foot rest, dikies, saree guard, power packs, machine

bed, machine columns, hoppers, gravity loaders, pneumatic circuit, hydraulic circuit etc. Press tools and parts: Body

parts for two wheeler and four wheelers, their press tools, press tools for defence purpose, press tools for shims,

templates, logos, etc. Die and Moulds: Plastic parts for two wheelers and four wheelers and their moulds etc. Jig and

fixtures: Jig and fixtures for CNC, VMC, HMC machines. Fixtures for SPMs, drilling jigs for various gang drilling

applications.



small, medium)

(page 23 of DPR)

500 Units

(Micro – 300, Small – 150 and Medium – 50)


the last five years

including exports (page 24 of DPR)

2005-06 428.21 crore

2006-07 466.14 crore

2007-08 513.29 crore

2008-09 578.79 crore

2009-10 634.05 crore.

f. Employment in Cluster

(page no. 4 of DPR) 8000 Nos.

g. Technological Details

(page no. 30 of DSR)

The technologies used by cluster units are conventional and

age old employed in the process of designing the system

particularly in casting, forging and fabrication units. Some

units have installed CNC machine tools. The testing

facilities are availed by the units from Pune region for the

finished products. The production tooling required by the

units is manufactured locally but advanced toolings are

procured from Pune region. However, the mature units

supplying component parts and sub-assemblies to lead firms

are equipped with the technologies as advised by their

principals.

h. Whether DS conducted and

validated. (page no. 7 of DPR)

Yes, the DSR is validated in District Level Cluster Co-

ordination Committee meeting held on 4.2.11 at Atharva academy, Bhosari Pune – 411026.

i. Main findings of DSR (page no. 60 of DSR)

DSR recommends following common facilities:- (i) Metallurgical Lab.

(ii) Inspection & Testing labs. (iii) Common processing house.

(iv) Industrial Waste Processing Center.

8

(v) Training Centre.

(vi) Raw Material Banks.

(vii) Design Centre.

j. Main Problems of cluster

(page no. 27 of DPR) • Lack of confidence & commitment to quality on part of

entrepreneur.

• Procurement of raw material from unapproved sources.

• High rejection rate /rework & defects.

• Lack of speed of innovation.

• Poor quality of production tooling.

• Lack of system of recognition & rewards.

• Lack of knowledge of lean manufacturing.

• Absence of the sense of ownership for cost quality and delivery.



a. Location of CFC Pune, Maharashtra As per SIDBI appraisal,

site is well connected by road and is about 4 km

from Chinchward railway station.

b. Land for CFC (page no. 86 of DPR)

i. Weather land

acquired


iii. Valuation and its

basis



vi. If on lease, duration

of lease


legally tenable

Layout plan of CFC given on page no. 143 –

145 of DPR)

Land and building proposed on 15 years lease (total areas 14552 sq.

ft.) (two premises in Pavana and

Vishweshwar Industrial area,

measuring area 8000 sq. ft. and

6552 sq. ft. respectively).

SPV have signed leave and license

agreement for a period of 15 year.

SPV clarified that legally

registered agreement will be

made before disbursement of

grant.

Registered lease deed agreement for a minimum

period of 15 years

required.

c. Total Building area (sq

ft)

14552 sq. ft. Proposed land and

building on 15 years lease. d. Rate of construction of

building

Not applicable

e. Main facilities proposed • Common Processing House

• Industrial Waste Processing

Centre.

• Metrology, Metallurgy, Testing

and Analysis Lab.

• Training (HR) Centre.

9

f. Prod. capacity of CFC Waste oil recycling plant- 5000 ltr

per day, CNC laser operations and

other machining operations

g. Major Outputs /



the cluster after proposed

intervention (in terms of production,

export/domestic sales and direct/indirect

employment, etc.) (page no. 45-46 of DPR)

Production – Boost upto 20%

productivity within 1 year.

Employment- enhancement in

employment opportunities – 30 to

40% in a year time. Turnover – expected increase 15 to

20% in 1 year. Export - estimated boost from

existing Rs. 50 cr. to 150.0 cr in two years.

Training - Nearby 10000 MSMEs will benefit

h. Pollution clearance required or not

As per SIDBI appraisal, Para 5.5 that the manufacturing process

does not discharge toxic effluents

except metal scrap which would be

recycled. However, a suitable

condition to obtain ‘consent to

establish’ and to obtain ‘consent to

operate’ from MPCB within 3

months from the commencement of

commercial production has been

stipulated.

i. Man power in CFC(page

no. 82 of DPR)

56 nos.


mechanism for


(service/user charges to

be levied, any other-to be

specified) (page no. 63 of DPR)

Revenue generation machanism

calculated at 100% capacity by Job

work in common processing house

per hour basis, by testing and

training and waste recycling -oil.

---


1st & 2

nd year (after tax).

(page no. 100 of DPR)


2nd


---


Description By IA Remarks, if any

a. Name and address (page no.

20 of DPR)

M/s. Sukhakarta General

Engineering Cluster Private

Limited (SPV), Gala No. F-

41, Vishweshwar Industrial

Co-op Soc Sector No. 7,

Plot no. 134/135,

Pradhikaran, Bhosari, Pune


Society or Trust)

Private Company SPV registered under

Companies Act 1956 as private

10

limited company.

c. Name of the state Govt. and


As per MoA, a

representative of the State

Govt. of Maharashtra shall

be accommodated in the

Board of Directors

Provision in the byelaws has

been made in article of

association (page 119 of the

DPR)

d. Date of formation of SPV (page no. 109 of DPR)

13th

April, 2011 --

e. Number of members (page no. 58 of DPR)

33 nos. (Details of individual member units

given)


submitted (page no. 122-129 of DPR)

Yes

g. Authorized share capital (page no. 58 of DPR)

Rs. 10.00 lakh divided into 1.00 lakh equity shares of

Rs. 10/- each.

h. Paid up capital as on 13th

April, 2011 (page no. 129 of DPR)

The minimum paid up

share capital of the company shall be Rs. 1.00

lakh.

i. Shareholding Pattern (page

no. 59-61 of DPR)

Given None of member has more than

10% of in the equity capital of the SPV.

j. Commitment letter for contribution

Given

k. SPV specific A/c (page no. 135 of DPR)

A/c No. 2431201005312



operative initiatives

pursued by SPV members

need to be highlighted with

support documentation

Trust already developed,

SPV formed.

m. Technical Institution (State

Government

recommendation letter

dated 13.10.11)

Technical support has been

assured from College of

Engineering, Pune, Novel

Institute of business management and Research,

Pune, Kasegaon Education Society’s Polytechnic

Lohagaon, Pune

--


SPV members as also others in a cluster.

However, evidence should be furnished with regard to

SPV member ability to utilize at least 60 per cent

of installed capacity. (page

no. 181 of DPR)

It is mentioned in the DPR

that SPV member alone could able over the 100%

of installed capacity on single shift basis.

Consent to utilize atleast 60%

of installed capacity required.

o. (a) Power requirement for 245.44 KW Arrangement to be done.

11

commercial/ domestic

purpose (page no. 80 of

DPR)

(b) Water

(c) Gas/Oil/ Other utilities

20,000 ltrs

---



i. Implementation Agency


Directorate of Industries, Govt. of

Maharashtra

Should be MIDC, Mumbai

j. Implementation Period


12 months from the date of

receive of sanction of grant under MSE-CDP.

The CFC should be

operationslised within two years from the date of final

approval.

k. Appraisal of DPR and


SIDBI appraised the DPR. In its

recommendation mentioned that project is technically feasible and

financial viable, core members of

the SPV are experienced and

committed and recommended

with certain terms and conditions.

Conditions mentioned in

the appraisal should be fulfilled by the SPV at

different stages before

sanction and during the

project implementation.

l. Comments of Technical

Division

Mech Division mentioned in its

report dtd 20.12.11 that

specification, nomenclature,

suitability, costing of machinery

to be provided. Clarifications

submitted by Directorate of

Industries have been forwarded to

Mech. Div. on 28.02.12. Final

comments awaited.

5. Financial Analysis of CFC (page no. 103 of DPR):


y. BEP 25.60% Ok

z. IRR, payback period 16.00%

aa. DSCR Average – 3.35 DSCR is mentioned on p

24 of SIDBI report. Capacity utilization is

very in 1st year 40%

bb. Return on Capital employed

(ROCE)

38.75% Ok

cc. NPV Rs. 536.65 lakh Ok

dd. Sensitivity Analysis (page no. 105 of DPR)

BEP – 27.03% ROCE – Rs. 31.97 lakh

IRR – 14% NPV – Rs. 345.29 lakh

ee. Working capital (In-principle Details not given

12


applicable arrangement made)

6. Project Cost: (page no. 90 of DPR):

* SIDBI report has recommended additional Rs. 32.30 lakh for transit insurance, octroi, transportation, electrification & commissioning.

7. Means of Finance: (page no. 91 of DPR):

8. Plant and machinery (page no. 77-78 of DPR) Annexure -III

9. Details of Fixed Assets (SIDBI Report page no. 21)

Sr.

No.

Furniture proposed Rs. in lakh Remarks

1 Material Handling accessories 0.85 Details of some of the

MFAs are not available.

SIDBI recommended disbursement on the basis

of actual expenditure.

2 Furniture, Library, fire fighting equipments, utility block etc.

15.23

3 Vehicle 7.00

Total 23.08

10. Shortcomings:

i. Land Documents ii. Consent to establish from Pollution Control Board

iii. Technical Division has not cleared the proposal

11 Proposal for the Steering Committee: Cluster division recommends the proposal for ‘In-


months, failing which the proposal shall be dropped. The Steering Committee may consider the

proposal for in-principle approval for setting up of Common Facility Centre (CFC) for General

Engineering & Allied Cluster, Bhosari, Pune, Maharashtra.

Particulars As per SIDBI

Recommendation

1 Land and building on lease 0.00

2 Plant & Machinery 1424.19*


4 Preliminary & Pre-operative expenses 9.00

5 Provision for Contingency 69.59



Particulars %age As per SIDBI

Recommendation


2. Grant-in-aid from Govt. of India 90% of eligible

project cost of

Rs 15 cr)

1350.00

Total 1536.16

13

Agenda No. 30.62 Proposal to set up Common Facility Centre (CFC) for Mango

Processing Cluster, Ratnagiri, Maharashtra

Development Commissioner (Industries), O/o Directorate of Industries, Govt. of Maharashtra has

submitted a proposal for setting up of CFC in Mango Processing Cluster, Ratnagiri, Maharashtra.

Salient features of the cluster and the proposal are as follows:


a. Name of the cluster Mango Processing Cluster


of cluster

Ratnagiri

c. Products of the cluster Canned Mango Pulp, Amba Poli, Mango syrup, Mango

squash, Amba Mawa and other products from mango as well as kokam and jackfruit.



small, medium) (p-14 of DPR)

37 registered micro & small units

e. Turnover (Rs in crore) for the last five years

Present - Rs. 40.00 crores

f. Exports (Rs in crore) for the last five years

70% of the turnover

g. Employment in Cluster 1100 nos.

h. Technological Details Technology employed is not advanced and heavily

relies on traditional knowledge. Packaging technology is also required modernization.

i. Whether DS conducted Yes and validated on 29.9.2008.

j. Main findings of DSR (p-22 of DPR)

• Strengthening the existing processing units by providing access to information on modern

technology, packaging, markets, food laws and

hygiene requirements.

• Creating awareness on the scope for mango processing in terms of increasing value addition to

the products. Developing Ratnagiri brand of Mango products.

• Strengthening of local institutions and linking them with those connected to the mango

processing industry at the national level.

• Hard interventions for common processing,

packaging, testing and reforming unit, marketing centre.

k. Main Problems of cluster (p-29 of DPR)

• Traditional processing, non-uniform quality

hampers the market.

• The production capacity of the units is small.

• Lack of awareness among manufacturers about quality certification.

• Low branding of product & packaging.

• No branding of the product in the market.

14



a. Location of CFC Located in the area of in &

around Ratnagiri and about

300 km from the State capital

Mumbai

b. Land for CFC

i. Weather land acquired (p-15 of SIDBI report)

Yes, SPV has acquired about 06 acres of land at village

Nakhare near pawas, Distt. Ratnagiri on 30 years long

lease, on a rent of Rs. 1.2 lakh per year.

Registered lease deed required.

ii. Title is in name of Notarized lease deed is in the name of the SPV

iii. Valuation and its basis Land is on rent of Rs. 1.2 lakh per year on lease basis

iv. Land is sufficient ----

v. Change of land use Information not available Required for

industrial purpose


lease

30 years


legally tenable

Only notarized.

c. Total Building area (sq ft)

(p-15 of SIDBI report)

Approx. 71355.6 sq. ft.


building

Rs. 632.59 per sq. ft.


Projected performance of cluster after setting up of

CFC

Before setting

up of CFC

After … years

of CFC

Production (Rs in

cr)

Information not given Export (Rs in cr)

Employment (nos)

Others like no of ISO, etc

f. Pollution clearance required or not

Information not given Food processing project, consent

required

g. Main facilities proposed (P-

23 of DPR) • Common Aseptic Packaging

Unit

• Common Ambapoli

Processing Centre

• Common Testing Laboratory

• Common Reforming unit

• Common Marketing Centre

h. Prod capacity of CFC Information not given

i. Man power in CFC 159 nos.

15

j. Revenue mechanism for

sustainability of CFC (by

user charges, etc)

Revenue assumption is

calculated on the job charges

basis from Aseptic plant, Lab

services, Reforming centre,

Ambapoli centre.


& 2nd

year. (p-38 of the

DPR)

Net surplus in 1st year Rs.

13.53 lakh and 2nd

year Rs.

118.23 lakh



a. Name and address Konkan Mango Processing (Ratnagiri) Private Limited

At & Post-Nakhare, Distt. Ratnagiri.

b. Nature of SPV (company or Society or Trust)

A Private Limited Company (incorporated under the

Companies Act, 1956 (No. 1 of 1956)

c. Name of the state Govt. and MSME officials in SPV

Not given Provision in the byelaws should be

made in article of association.

d. Date of formation of SPV 13.11.2009


Units

41 members


submitted

Yes

g. Authorized share capital Rs. 200000/-

h. Shareholding Pattern

(SIDBI appraisal annx.-I)

Given None of SPV

member have more

than 10%

shareholding in the

SPV.


contribution (encl. III of

DPR)

Given

j. SPV specific A/c Not given




by SPV members with

documentation

Soft interventions were

undertaken by State govt.

under MSE-CDP during FY

2009-10. SPV formed,Trust

developed.

l. Technical Institution Agricultural Technology

Management Agency,

Ratnagiri


SPV members as also others

in a cluster. Evidence FOR

SPV members’ ability to

utilise at least 60% of

Not given Commitment

regarding utilization

of 60% of the

installed capacity by

SPV member

16

installed capacity required.


Power 200 units per hour

Water 80000 ltr. Per day

Gas/Oil/ Other ---

4 Project Cost:

(Rs. in lakh)

Particulars Amount

1 Building / Civil construction 451.39

2 Plant & Machinery (Imported & Indigenous) 1302.26

3. Pre-operative expenses 78.64

4. Provision for contingencies 39.06

Total 1871.35


(Rs. in lakh)


1. Share Capital 10% of PC 187.14

2. Govt. of India contribution 85.19% of the eligible PC 1277.96

3. Term loan from bank 21.70% of PC 406.25

Total 1871.35



a. BEP (page – 35 of DPR) 49.82% O.K.

b. IRR, payback period (page – 34 of DPR)

17% 2 years one month

c. DSCR (page – 35 of DPR)

2.35 with grant 0.57 without grant


employed (ROCE)

--

e. NP Ratio (page – 34 of

DPR)

2nd

year - 3.59

3rd year 40.66

f. DER (page – 34 of

DPR)

2.17

g. Sensitivity Analysis

(page – 34 of DPR)

Positive

7. Plant and Machinery Annexure-I



i. Implementation Agency Deptt. of Industries, GoM. Should be MIDC,

Mumbai

j. Commitment of SPV contribution (Encl – III of

DPR)

Received

17

k. Commitment of State


Not applicable.

l. Commitment of Loans)

(Working capital and/ or

term loan) (Encl – VIII of

DPR

In-principle approval of the

project from Bank of

Maharashtra, Ratnagiri

m. Implementation Period (page – 63 of DPR)

12 months The CFC should be operationslised

within two years from the date of

final approval,

n. Appraisal of DPR and main

recommendations

SIDBI appraisal

recommends that proposal may be submit to Steering

Committee of MSE-CDP for its consideration for

sanction of GoI grant of

Rs. 1277.96 lakh to SPV.

(Annexure – II)

Conditions

mentioned in the appraisal should be

fulfilled by the SPV at different

stages before

sanction and

during the project

implementation.

o. Comments of Technical

Division

Technical Division of DC,

MSME has not supported

the proposal mentioning

that CFC will work as an

independent unit. It may be

beneficial to mango

growers but not cluster

units, as it is not

complementing /

supplementing the existing

processing activity of cluster unit.

Conveyed to DC

(Industries),

Directorate of

Industries, GoM

vide letter dated

10.10.2011. Reply

awaited.

9 Shortcomings:

i. Registered lease deed with land use permission

ii. Projected quantified outcomes with time limits

iii. Commitment regarding utilization of 60% of the installed capacity by SPV member, consent from pollution department,

iv. Inclusion of one State Govt. and one MSME officials each, provision in the byelaws

v. Technical Division of DC, MSME has not supported the proposal mentioning that CFC will

work as an independent unit. It may be beneficial to mango growers but not cluster units, as

it is not complementing / supplementing the existing processing activity of cluster unit. State

govt is considering submitting of revised DPR.


‘In-principle’ approval so that complete proposal is submitted by the State Government within 6 months, failing which the proposal shall be dropped. Steering Committee may consider the

proposal for setting up of Common Facility Centre (CFC) for Mango Processing Cluster,

Ratnagiri, Maharashtra.

18

Agenda No. 30.63 Proposal to set up Common Facility Centre (CFC) for Rice Mill

Cluster, Thanjavur

Principal Secretary to Government, Govt. of Tamilnadu has submitted a proposal for

setting up of CFC in Rice Mill Cluster, Thanjavur. Salient features of the cluster and the proposal

are as follows:



a. Description By Implementing Agency Remarks ,

if any

b. Justification for CFC 1. There is little modernization and

a. Name of the cluster Rice Mill Cluster

b. Location of Cluster Thanjavur, Tamilnadu.

c. Products of the cluster Rice, Rice Bran, Husk, Husk Ash.



small, medium)

(p – II of DSR)

270 units (Small -140 and Micro – 130)

OBC – 75%, SC/ST – 1%, Minorities – 15% and others –

9%.


the last five years (p – II of DSR)

Rs. 300-350 crore (estimated for one year)


the last five years

Nil.

g. Employment in Cluster

(p – II of DSR)

10000 (Direct – 4500 & Indirect – 5500)

h. Technological Details

(p- 16 of DSR)

Most of the units have installed indigenous & non-standard

local fabricated plants and follow traditional operations.

In general, the units lack modern technology and are not

competent in processing techniques in the following areas:

Storage techniques for Rice, Bran & Paddy, Drying

techniques, Parboiling techniques, Processing techniques,

Polishing methods, Effluent Treatment.

Appropriate De-husking, Value addition to waste material,

Energy Conservation, Colour sorting, Pollution control.


j. Main findings of DSR

(p – 22 of DSR)

Establishing Common Facility Centers with high quality &

efficient technology in the fields of processing, energy

sourcing, quality improvement, testing, storage, manpower

training, value addition packaging, wealth from waste etc.

k. Main Problems of cluster

(p – 20 of DSR)

Lack of scientific storage.

Lack of Poor quality of raw material.

Connection on local market only.

Low productivity of local machinery.

Reluctance to upgrade technology.

Inadequate linkage. Absence of alternative source of energy.

Lack of interest in workers training.

19

technology upgradation in the industry.

2. The larger units in the industry do not

venture into open market and face

competition but cater mainly to Public

Distribution System.

3. Rice milling is the traditional and major

industrial activity in the district.

c. Location of CFC Thanjavur

d. Land for CFC Weather land acquired

Title is in name of


Land is sufficient

Change of land use


lease Whether lease is legally

tenable

1.25 acres of land at a cost of Rs. 4.90 lakh

has been purchased and registered in the

name of M/s Thanjavur Paddy & Rice Millers

Consortium Pvt. Ltd. Land is located at R.S.

No. 118A/3, No. 7, Westulur village,

Orathanad Taluk, Thanjavur district,

Tamilnadu and situated at main state highway.

Land deed –

certified in the

Hindi/English

version required

along with land

use permission.

e. Total Building area

(sq. ft.)

Proposed to construct industrial shed,

Godown, Milling unit, Shed for boilder unit,

chimney, Ash room, Training centre, Testing

Laboratory building etc. at a cost of Rs.

60.50 lakh.

Proposed building

Area is not

mentioned.

f. Rate of construction of

building

Not given.

g. Main facilities proposed Par-boiling and Drier unit, raw paddy pre-

cleaning unit, Modern rice Milling unit,

Grader unit and Colour sorter unit. Testing

and training centre.

h. Prod capacity of CFC

(p – 30 of DPR)

Modern Rice Milling unit 2 MT / Hr.

i. Major Outputs /



of the cluster after

proposed intervention

(in terms of production,

export/domestic sales

and direct/indirect employment, etc.)

(p – 50/c supplementary information)

Paramet

ers

Pre

interventio

ns

Post intervention

Immedia

te after

formatio

n of CFC

Anticip

ated

benefit

in

future

No. of units

Hulling-90 Mini

Modern-5 Modern-5

120 within 1

yr.

130 within

3 yr.

Employment

4000 4500 5000

Production

134400MT

138400MT

140000 MT

Sales turnove

r

43.5 cr. 47.85Cr. 50.0 Cr.

Quality(

hulling

- 20% 30%

20

units)

Product

diversifi

cation/v

alue

addition

Nil 10% 15%

Improv

ement

of Income

at unit level

30 lac 33 lac 36 lac

j. Pollution clearance

required or not


k. Man power in CFC 17 nos.

l. Revenue generation

mechanism for


(service/user charges to be levied, any other-to

be specified) (p – 32 – 33 of DPR)

Revenue has been calculated on the basis of

75% (during the 1st year) utilization of

installed capacity i.e. (16 Tonnes per shift)

(one shift of 8 hrs.) at a charge of Rs. 1.50 per k.g. It is mentioned that revenue will also be

generated from testing and training charges.

As major revenue

source is from

hulling i.e. Rs. 54

lakh out of total Rs 67.68 lakh,

after deleting Rice milling

component, financials will

change. Revised calculations are

required.


Description By Implementing Agency Remarks, if

any

a. Name and address M/s. Thanjavur Paddy & Rice

Millers Consortium Pvt. Ltd.,

Street, M CHAVADY,

Thanjavur – 613001.

Tamil Nadu.


Society or Trust)

Private Company Limited –

registered under the Companies act

1956 (No. 1 of 1956)



Yet to be nominated. Provision in the

byelaws should

be made in article of

association.

d. Date of formation of SPV 17.06.2007

e. Number of members 25 nos.


submitted

Yes

g. Authorized share capital 1,00,000/-

h. Paid up capital as on 1st

January 2009

1,00,000/-

21

Description By Implementing Agency Remarks, if

any

i. Shareholding Pattern

(Attached with MoA in the

DPR)

None of SPV members have more

than 10% shares.


contribution

Undertaking regd. Rs. 21.4 lakh

equity capital toward share of contribution given on 15.2.12.

.

k. SPV specific A/c

(p – 2-3 Term Loan Letter)

It is mentioned in the Term Loan

sanction letter that the SPV is

banking with IOB since 21.03.2009

account no. is 12222.




by SPV members need to be

highlighted with support

documentation

SPV formed. It is mentioned that

SPV has already taken various soft

interventions activities with the

support of MSME-DI, DIC and

PPRC.

m. Technical Institution M/s Paddy Processing Research

Centre, Govt. of India, Thanjavur.

n. CFC may be utilised by SPV


cluster. However, evidence


regard to SPV member ability

to utilise at least 60 per cent of installed capacity.

(Enclosed in DPR as Annexure)

SPV has given an undertaken

mentioning that all our member able

to utilized services. Besides non

members are also permitted to use

the facility without any restriction.

o. (b) Power requirement for commercial/ domestic

purpose (c) Water

(d) Gas/Oil/ Other utilities

Not given.

p. Profit/ Surplus generated by

CFC to be ploughed back for future/expansion of CFC.

(p – 42 of DPR)

1st year - Rs. 10.46 lakh.

2nd

year – Rs. 17.70 lakh 3rd year – Rs. 26.23 lakh


Description By Implementing Agency Remarks, if any

a. Implementation Agency TANSIDCO, Chennai All projects in

Tamilnadu

implemented by

TANSIDCO.

b. Implementation Period

(p – 27 of DPR)

12 months The CFC should be

operationslised within

two years from the

date of final approval,

22

Description By Implementing Agency Remarks, if any



SPV submitted Board Note by

Indian Overseas Bank, Thanjavur

to Chief Manager for sanctioning

term loan of Rs. 50.00 lakh for

building. It is also mentioned that

the Thanjavur being paddy growing

area is suitable for setting up of a

modern rice mill and proposal is

commercially viable and

technically feasible. Annexure -

Detailed SIDBI

appraisal is required.

d. Comments of Technical

Division

Food Division, office of DC

(MSME) recommended facilities

other than milling unit i.e.

parboiling and drier unit, raw paddy

pre-cleaning unit, grader unit, colour sorter unit, testing centre.

Total Cost of Machinery is Rs.146.99 lakh including modern

rice milling unit (worth Rs.32.6 Lakh).

In case milling unit is

removed, financials

need to be reworked.

e. Approval of Technical

Committee

Proposal was discussed in

Technical Committee meeting on

1.12.11. it was decided that

proposal may be submitted on file

after receiving all the information including SIDBI appraisal.

Deficit information

awaited from

Government of

Tamilnadu.


Description By Implementing

Agency

Remarks, if any

a. BEP 59.04% Financial ratios

needs to rework

after deleting the

Rice milling

component

b. IRR, payback period 17.79%

c. DSCR 5.13

d. Return on Capital employed (ROCE) 27.37%

e. NPV -

f. DER -

g. Sensitivity Analysis IRR 15.68%

Average DSCR

4.42%

h. Working capital (In-principle sanction of loan

from a bank, if applicable

arrangement made)

1st year -Rs.

27.47 lakh .

In-principle sanction

for working capital

from bank required.

6. Project Cost:

Particulars of cost Amount (Rs. in lakh)

(i) Land 4.90

(ii) Building 60.50

(iii) Plant and machinery * 146.99*

(iv) Misc. Fixed Assets 14.27

23

(v) Preliminary expenses 5.00

(vi) Pre-operative expenses 7.00

(vii) Contingencies 6.00

Total 244.66

*Technical Division has recommended removal of machinery worth Rs.32.60 Lakh.


*In case milling unit is removed, financials need to be reworked.

8. Plant and machinery – Annexure

9. Shortcomings

i. SIDBI Appraisal of DPR

ii. Change in land use

iii. Revised financials need to be worked out in case milling unit is not installed

iv. Details of building area



months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for setting up of CFC in Rice Mill Cluster, Thanjavur, Tamilnadu to accord in principle

approval.


lakh)



3. Grant-in-aid from Govt. of TN 16.52 40.43

4 Bank Loan (for building) 20.44 50.00

Total 100.00 244.66*

24

Agenda No. 30.64 Proposal to set up Common Facility Centre (CFC) for Engineering

Cluster, Dindigul, Tamilnadu

Director and Commissioner of Industries and Commerce, Govt. of Tamilnadu has submitted a

proposal for setting up of CFC in Engineering Cluster, Dindigul. Salient features of the cluster



a. Name of the cluster Engineering Cluster


of cluster (page – 1 of

DSR)

Dindigul District


(page – 8 of DPR)

Engineering activities i.e. fabrication work, automobile spares, components manufacturing,

textiles machinery spares, structural fabrication work, transformer manufacturing, EB overhead line

materials, locks and door fittings, furniture, gears, industrial valves, iron casting, agricultural equipment,

cycle parts etc.



(page – 1 of DSR)

213 nos. units (Medium - 3, Small – 60, Micro – 150)


years (P-9 DPR)

Rs. 475 crore (400 crore for 3 medium size industries

and Rs 75 crore for MSE sector)


the last five years (P-9 DPR)

Rs. 150.00 crore. (from medium size units)

g. Employment in Cluster (P-9 DPR)

4000 (Direct – 1000 & Indirect – 3000)

h. Technological Details Transforming the engineering units at Dindigul to become more vibrant, efficient, and modernized by

2012 by infusing technology, quality standards and bring cultural changes among the micro and small

scale units under cluster mode.



(page – 10 of DPR) • The investment in plant and machinery by micro

units is relatively very low. Firms are not able to

get in to newer markets because of lack of firm level technology/modern machineries, testing,

training / capacity building facility for newer skills to other market segments.

• No facility available for R & D which is very essential for diversification.

• An inadequate testing facility for raw materials as well for finished products within the cluster is

another hindering factor.

• The productivity of the firms is relatively low due

to their limited infrastructure and technology level.

• Lack of good tool room facility and modernized higher capacity plant for handling bigger value

25

added services to BHEL and others.

• Frequent power interruption is another factor limiting the productivity of the firms.


(page – 32 of DSR) • Lack of good tool room facility for taking up

bigger order by micro units.

• Inadequate testing facilities and calibration

facilities.

• Low productivity due to insufficient

infrastructure and technology level.

• Individual procurement of raw materials

increases overall cost and reduces profit margin.



a. Location of CFC Dindigul District Tamilnadu

b. Land for CFC

i. Weather

land acquired

Yes

ii. Title is in

name of (P-16 DPR)

M/s Dindigul Engineering Clusters Pvt.

Ltd, Dindigul, Tamilnadu. However, Sale

Deed is in local language

iii. Valuation and its basis (P-16

DPR)

Estimated cost of land and development is Rs. 60.00 lakh.

iv. Land is

sufficient (P-16 DPR)

SPV has already purchased about 10 acre

land in the suburbs of Dindigul for CFC.

v. Change of

land use Not mentioned

vi. If on lease,

duration of lease

N A

vii. Whether

lease is legally

tenable

N A

c. Total Building area

(sq ft)

Not mentioned

d. Rate of

construction of

building

Estimated at Rs. 120.00 lakhs

e. Major Outputs of

CFC,

Projected

performance of

cluster after setting

up of CFC (P-25

corr.)

Paramete

rs

Pre

Interventio

n

Immediate

after CFC

Anticipated

benefit in future

No. of

units

210 230 265

Employme

nt

4000 4500 5175

Turnover Rs. 75 crore Rs. 90 crore

(Increase 20%)

Rs. 117 crore

(Increase 30%)

26

Improvem

ent of

Income at

unit level

Micro-Rs.

20 lakh

Small-Rs.

75 lakh

Rs. 24 lakh

Rs. 90 lakh

(Average

20%)

Rs. 30 lakh

Rs. 112.5 lakh

(average 25%)


required or not

No details given.

g. Main facilities proposed

(Page – 2 of DPR)

1. Common Processing Center (heavy Engineering Fabrication & Machine shop)

2. Quality Control cum Testing Center. 3. Training Center.

h. Prod capacity of CFC


i. Man power in CFC (Page – 12 of

Appraisal Report)

105 nos.

j. Revenue

mechanism for sustainability of

CFC (by user charges, etc)

Revenue generation calculated on job

work per machine, per hour basis.

k. Estimated net profit for 1st & 2nd

year. (Page – 41 of DPR)

1st Year – Rs. 174.04

2nd Year – Rs. 188.20



any

a. Name and address M/s Dindigul Engineering Clusters Pvt.

Ltd, Dindigul, Tamilnadu. S-12, R.M. Colony, Dindigul – 624001

b. Nature of SPV

(company or Society

or Trust)


c. Name of the state

Govt and MSME

officials in SPV

Nomination details not mentioned.


SPV

11th

March 2009

e. Number of MSE

Member Units

24 nos.


AoA submitted

Yes

g. Authorized share

capital (P-8 of AOA)

Rs. 5 lakh divided into 5000 shares.

SPV has 46 share holders. Authorized

share capital will be suitably enhanced

to Rs. 132.82 lakh.

h. Shareholding Pattern Not given

i. Commitment letter

for contribution

Not received

j. SPV specific A/c In Axis Bank

27

k. Trust building of

SPV, Previous track

record of co-


pursued by SPV

members with

documentation

SPV formed

l. Technical Institution Information not given

m. CFC may be utilised by SPV members as

also others in a

cluster. Evidence

FOR SPV members’

ability to utilise at

least 60% of installed

capacity

Letter received. The members of the SPV will be utilizing 60% of the

operating capacity of the CFC and the

other members will be utilizing the

balance 40% capacity.


Power 155.5 MW during 2011-12

Water No need for water for processing.

Company will be using ground water for other purpose.

Gas/Oil/ Other

4 Project Cost:

(Rs. in lakh)

Particulars Amount

1 Land 60.00

2 Building 120.00



5 Preliminary & Pre-operative expenses, maximum 2% of project cost

20.00

6 Contingency (2% building and 5% on plant and machinery)

37.82


Total 971.29


(Rs. in lakh)




3. Grant-in-aid from Govt. of Tamilnadu 10 97.13


Total 971.29



a. BEP 51.02 As per guidelines of

MSE CDP. b. IRR 11.14

28

c. DSCR 7.54


employed (ROCE)

27.33

e. NPV 41.89

f. DER -

g. Sensitivity Analysis IRR – 8.77

DSCR – 6.18

7. Plant and Machinery (page no. 21 of DPR) Annexure I



a. Implementation Agency TANSIDCO, Chennai

b. Commitment of SPV contribution Not received


State govt has forwarded the proposal.

d. Commitment of Loans (Working capital and/ or term loan)


Axis bank in its appraisal mentioned that SPV has

requested for Working capital loan and term loan.

e. Implementation Period (Page – 18 of DPR)

Within 8-12 months from the dated of approval of

the CFC.

CFC should be operationslised

within two years from the date of

final approval.


recommendations

DPR is appraised by Axis

Bank, SME Centre, Madurai – 625002

Annexure II

Detailed appraisal

required.

g. Comments of Technical Division Mech Division has taken

up issue of justification/

utilization of machinery

(reminder issued on

12.5.11, 1.8.11).

9. Shortcomings

i. Detailed appraisal in SIDBI format

ii. Provision of state & MSME official in MoA

iii. Building details

iv. Commitment of SPV for its contribution

v. Justification/ utilization of machines -- issue raised by Mech division



months, failing which the proposal shall be dropped. Steering Committee may consider the proposal of in-principle approval for setting up of CFC for Engineering Cluster, Dindigul.

29

Agenda No. 30.65 Proposal to set up Common Facility Centre (CFC) for Refractory

Cluster, Vridhachalam, Tamilnadu

Principal Secretary to Govt., Govt. of Tamilnadu has submitted a proposal for setting up of

CFC in Refractory Cluster, Vridhachalam, Tamilnadu. Salient features of the cluster and the





a. Justification for CFC Old technology / machinery are

being used.

a. Name of the cluster Refractory Cluster

b. Location of Cluster Vriddhachalam, Distt. Cuddalore, Tamilnadu

c. Products of the cluster Bottam Pouring Set, Fire Bricks, Refractory Bed

Materials


including break up (micro, small, medium) (page no. 7

of DPR)

102 units (Small- 1 & Micro- 101)


the last five years (in

additional information)

2006-07- Rs. 34.00

2007-08- Rs. 35.00 2008-09- Rs. 38.00

2009-10- Rs. 40.00 2010-11- Rs. 45.00

f. Exports (Rs in crore) for the last five years (page no.

8 of DPR)

Nil


(page no. 8 of DPR)

4500 persons (60% of women workers)

h. Technological Details


Present- DD Kiln technology is being used.

Proposed- Tunnel and Rotary Kiln technology will be

used.

i. Whether DS conducted and

validated.

DPR is validated by Govt. of Tamilnadu.

j. Main findings of DSR NA

k. Main Problems of cluster • The cluster units are using only DD Kiln for firing

the refractories.

• Fire wood is used as the fuel for firing, which results in pollution.

• The wastage percentage is more since they use DD Kiln.

• The cost of manufacture only very limited products on account of lack of facilities.

• Their market segment is very limited.

• The units also face lack of finance for expansion.

• There is also lack of testing facilities for product

diversification.

30

b. Location of CFC Vridhachalam, Cuddalore Distt.,

Tamilnadu.

c. Land for CFC (page no.

19 of DPR)

i. Weather land

acquired






lease


legally tenable

3 acres & 98 cent- SPV is in process

of purchasing of land (Agreement

papers submitted but in local

language)

English / Hindi

version of

registered sale deed

required.


(Building estimates)

48000 sq ft.


building

For construction of A.C. sheet roofed

shed @. 300/sq. ft.

f. Main facilities proposed


Kiln section, Processing section,

Tool Room facility, Testing centre

and R&D section.

g. Prod. capacity of CFC Rotary – 40 tones per day.

Tunnel Kiln – 50 tones each per day.

h. Major Outputs /




intervention (in terms of

production,

export/domestic sales and

direct/indirect

employment, etc.) (page

no. 53 of DPR)

Present

Status

One Year from

setting up of

CFC

No of

units

102 122 (Increase by

15-20%)

Emplo

yment

4500 5175 (Increase by

15%)

Turno

ver

Rs. 45.00

crore

Rs. 51.75 crore

(Increase by 15%)

Export Nil Rs. 1.00 crore

Qualit

y

Rejections due to

firing will be very

less 1%)

Produc

t

diversi

ficatio

n

Mostly

bottom

pouring sets

& fire bricks

Diversification to

high alumina

Refractory

products.

Increa

se in

incom

e

15-20%

i. Pollution clearance

required or not

Not given Consent to

establish required.

j. Man power in CFC


61

k. Revenue generation Income assumption made on the

31

mechanism for




specified) (page no. 39 of

DPR)

basis of user charges Ist year – Rs.

671.89 lakh proposed.

l. Estimated net profit for 1st

& 2nd year. (page no. 40 of

DPR)

Retained profit (after tax)

1st year– Rs. 68.73 lakh

2nd


---



a. Name and address (page no. 16

of DPR)

M/s Vriddhachalam Refractories Consortium

Private Ltd., 184, Aladi Road, Vriddhachalam- 606 001,

Cuddalore, Tamilnadu

----


Society or Trust) (Annexure of

DPR)

Private Ltd. Company

[(registered under Act 1956)

(No. 1 of 1956) with section 3

(1) (iii)]

Articles of association

should be as per

guidelines of MSE-

CDP.

c. Name of the state Govt. and


----- Provision in the

byelaws has been made

on 28.01.12.

d. Date of formation of SPV 5 April 2010 --

e. Number of members (in

additional information)

29 nos.

f. Bye laws or MA and MoA

submitted

Yes

g. Authorized share capital (in

additional information) (raised on 28.1.12)

Rs. 45,00,000/- dividend into

Rs. 45,000/- equity share of

Rs. 10/- each

h. Paid up capital

(in additional information)

Rs. 40,16,500



Given.


contribution (in additional

information)

Given.

k. SPV specific A/c


State Bank of India,

Vriddhchalam Current A/c

No. 31137208391

l. Trust building of SPV, Previous

track record of co-operative

initiatives pursued by SPV members need to be highlighted

with support documentation

SPV formed, only

photographs of some training

and exposure visit attached with the DPR.

MSME-DI, Chennai

conducted MDP.

m. Technical Institution (page no. SPV has been utilizing the --

32


16 of DPR) expertise of Retired Professor

from Anna University.

n. CFC may be utilized by SPV



should be furnished with regard to SPV member ability to utilize

at least 60 per cent of installed capacity. (in additional

information)

Given.

o. (a) Power requirement for

commercial/ domestic purpose (page no. 31 of DPR)

(b) Water (c) Gas/Oil/ Other utilities

250 HP



a. Implementation Agency


Industries Commissioner & Department of Industries and

Commerce (IC&DIC), Govt. of TN

All the projects in Tamilnadu implemented by

TANSIDCO.



12 months from approval by Purchase

Committee

Should be two years from

the date of final approval.

c. Appraisal of DPR and main recommendations

State Bank of India appraised the DPR. In its recommendation

mentioned that project to setup a CFC

for processing, production, testing

centre and training centre is

technically feasible and economically

viable. Appraisal is insufficient.

(Annexure-I)

Detailed appraisal from SIDBI or as per MSE-CDP

guidelines required.


Division

The project report for setting up CFC

for Refractory Cluster at

Vriddachalam, Cuddalore has been

found technically feasible.



a. BEP (page no. 51 of DPR) 51%

b. IRR, payback period (page no. 48 of DPR)

13.33%

c. DSCR (page no. 44 of DPR) 6.29

d. Return on Capital employed (ROCE)


30.21%

e. NPV (page no. 48 of DPR) Rs. 109.70 lakh

f. DER

g. Sensitivity Analysis (page no. 49-51 of DPR)

DSCR – 5.28 IRR – 11.02%

33

NPV@10% - 33.46

h. Working capital (In-principle


applicable

arrangement made)

In-principle given by State

Bank of India, Chennai.


* should be restricted to 2% of project cost.


8. Plant and Machinery: Annexure - II

9 Shortcoming

i. Detailed appraisal (preferably in SIDBI format) ii. Validation of DSR/DPR from stake holders




proposal for setting up of Common Facility Centre (CFC) for Refractory Cluster, Vridhachalam,

Tamilnadu to accord in-principle approval.

Particulars Amount (Rs. in

lakh)

1 Land 40.00

2 Building 150.00



5 Preliminary exp. 5.00*

6 Pre-operative exp. 15.00*

7 EB Deposits 2.00


9 Margin for working capital 10.00

Total 898.53

Particulars %age Amount (Rs. in

lakh)

1. Grant-in-aid from Govt. of India 64% 573.51

2. Grant-in-aid from Govt. of Tamilnadu 10% 89.85


4. Bank Loan/ others 11% 100.00

Total 100% 898.53

34

Agenda No. 30.66 Proposal to set up Common Facility Centre (CFC) for Stainless Steel

Utensils Cluster, Kumbakonam, Thanjavur District, Tamilnadu

Principal Secretary to Govt., Micro, Small and Medium Enterprises (D1) Deptt., Govt. of

Tamilnadu has submitted a proposal for setting up of CFC in Stainless Steel Utensils Cluster,

Kumbakonam, Thanjavur District, Tamilnadu. Salient features of the cluster and the proposal are

as follows:




recommending Agency

Remarks, if any

a. Justification for CFC

(Page – v of DPR) • This CFC disseminates & promotes

adoption of advanced technology,

undertakes R&D in design centre, provides new form of training to

a. Name of the cluster Stainless Steel Utensils Cluster

b. Location of Cluster Kumbakonam, Thanjavur District, Tamilnadu


(page no. 5 - 7 of DPR)

Steel kettle, tea pots, coffee mugs, coffee maker, coffee pots, coffee cups, coffee warmer, tea sets, tea strainer,

fork, spoons, knives, fruit bowls, soup bowls, steel colanders, steel boilers etc.

d. No. of Enterprises including break up (micro,

small, medium) (page no.

15 of DPR)

114 units (micro enterprises) and around 46 units from part of the association.

e. Turnover (Rs in crore) for the last three years (page

no. 16 of DPR)

2003-04 - 17.70 2004-05 - 18.46

2005-06 - 19.44


the last five years (page no.

73 of DPR)

Nil



400 Nos.

h. Whether DS conducted and

validated.

DSR is not validated.

i. Main findings of DSR

(page 41 of DSR)

Need of CFC identify for buffing and polishing (internal

and external) of kitchen ware utensils. Need for

advance machines also identified.

j. Main Problems of cluster

(page no. ii of DPR) • Manual buffing process is handled by the cluster

members for both the internal & external surfaces of the kitchenware utensils.

• Deep draw press of lower capacity (<=100 Tons) exist in the cluster, which is insufficient to meet the

needs of the cluster.

• Weak linkages with the institution & association.

• Lack of exposure to advanced technology.

35


recommending Agency

Remarks, if any

employees leading to employment

generation qualifies for Developmental

Scheme under MSE-CDP Scheme.

• Further this CFC is being adopted by a

group of micro enterprises which

qualifies for developmental

interventions.

b. Location of CFC Thanjavur District, Tamilnadu

c. Land for CFC (page

no. ii of DPR)

i. Weather land

acquired



basis




of lease

vii. Whether lease is legally tenable

Land is available on Rental Basis @ Rs.

1.44 lakh per annum in Kumbakonam.

Documents seem

to be in Tamil

language

d. Total Building area (sq

ft) (Building estimates)

Not given Details required


building

Premises on lease.


(page no. 14 of DPR) • Special purpose machine for buffing

both external & internal surfaces of the kitchenware utensils.

• 300 Tons Hydraulic Deep Draw Press.

• Tools & Dies for Design Centre.

• Other machineries & accessories

required for the CFC.

g. Prod. capacity of CFC

(page iv of DPR)

3.6 lakh pieces per year.

h. Major Outputs /




intervention (in terms of

production,

export/domestic sales and direct/indirect

employment, etc.) (page no. 78 of DPR)

Projected economies of scale and growth

potential, expected performance of the

cluster after proposed intervention

Increase of

turnover

Growth rate of

100%

Increase of

production

Growth rate of

40%

Increase of exports Growth rate of

40%

15-20% reduction in the annual cost of

production 40% increase in the employment.

i. Pollution clearance required or not (page no.

60 of DPR)

Information not given Consent of Pollution Control

Board is required.

36


recommending Agency

Remarks, if any

j. Man power in CFC (page

no. 92 of DPR)

48

k. Revenue generation

mechanism for

sustainability of assets (service/user charges to

be levied, any other-to be specified) (page no. 91 of

DPR)

1st year on 60% capacity utilization – Rs.

53.10 lakh

2nd

year 65% capacity utilization – Rs. 57.53 lakh

l. Estimated net profit for

1st & 2

nd year.

(Annexure-II of DPR)

1st year– Rs. 10.06 lakh

2nd

year - Rs. 13.00 lakh

---



recommending Agency

Remarks, if any

a. Name and address (page

no. 54 of DPR)

Stainless Steel Utensil

Manufacturers Association, No. 10, Sarangapur, South Street,

Kumbakonam, Tanjore District, Tamilnadu

----

b. Nature of SPV (company or Society or Trust) (Society

registration)

Registered under section 10 of the Tamilnadu Act, 1975 (Tamilnadu

Act 27 of 1975)

c. Name of the State Govt.


SPV

Not given Provision in the

byelaws required.


Society

10th

September 2008 --

e. Number of members (page

no. 106 -110 of DPR)

46 nos. Details of 46 nos.

SPV members given

in local language.

contribution details required.

f. Bye laws or MA and MoA submitted

Not received Bylaws and MoA required

g. Authorized share capital Not received

Required

h. Paid up capital



contribution

k. SPV specific A/c Union Bank of India

A/c. No. 392601010292979

37


recommending Agency

Remarks, if any




pursued by SPV members

need to be highlighted with

support documentation

SPV formed. It is mentioned that

SPV has already established

institution tie-up and identify the

site and made a lease agreement

for establishing CFC.

m. Technical Institution Institutional tie-up and linkages with Periyar Technology Business

Incubator of Pariyar Maniammai

University. Conducted skill

oriented training programmes and

undertaking various promotional

activities.

--


SPV members as also


However, evidence should

be furnished with regard to

SPV member ability to

utilize at least 60 per cent

of installed capacity. (page

no. 80 of DPR)

CFC mostly will be used by SPV

members and others, the

percentage of usage by SPV

members may exceed 60%.

Consent to utilize

atleast 60% of

installed capacity

required.

o. (a) Power requirement for

commercial/ domestic

purpose (page no. 92 of

DPR)

(b) Water

(c) Gas/Oil/ Other utilities

55 HP

----

----



recommending Agency

Remarks, if any

a. Implementation Agency


Industries Commissioner &

Department of Industries and

Commerce (IC&DIC), Govt. of

Tamilnadu

All projects in Tamilnadu

implemented by

TANSIDCO.



3 years It should be 24 months

from date of final approval.

c. Appraisal of DPR and main recommendations

(Union Bank of India appraised of DPR)

Union Bank of India appraised the DPR. In its recommendation

mentioned that project may be technically and economically

feasible and financially viable.

Annexure I.

Term loan is not proposed for the project

hence, appraisal from SIDBI is required.

d. Comments of Technical Division

Technical Division has supported the proposal.

e. Approval of Technical

Committee

Observations:

• The appraisal report by Union

Observations of

Committee and Cluster

38


recommending Agency

Remarks, if any

Bank of India is not as per

guidelines of MSE-CDP &

appraisal from the SIDBI may

be got done.

• The clarification regarding

‘MS tools worth Rs. 1.23

lakh, which are taken part of

the machinery and equipment

and not as consumable’ may be sought.

• Justification for MS tools Stock Pot Die, Stock Pot

Spinning Punch Die etc. may be obtained.

• Purpose of some of the equipments is not clear, the

committee observed that

cluster may be visited by the

MSME official to assess the

suitability of proposed

machinery and equipment vis-

à-vis the requirements of the

cluster.

Division were conveyed

to State Govt. on

09.02.12. Reply awaited.



recommending Agency

a. BEP (page no. 81 of DPR) 55.92% (Avg.)

b. IRR, payback period (page no. 81 of DPR) 12.12%.

c. DSCR (page no. 81 of DPR) Nil

d. Return on Capital employed (ROCE) (page no. 81 of

DPR)

27.46%.

e. NPV (page no. 81 of DPR) Rs. 5.19 lakhs.

f. DER NA

g. Sensitivity Analysis (page no. 81 of DPR) Sensitivity analysis has

been done for 5% drop in the user charges & 5%

increase in expenses.

h. Working capital (In-principle sanction of loan from a

bank, if applicable arrangement made) (page no. 80 of DPR)

The cluster not depends

for any debt finance from Bank,

39



8.

Plan

t

and

mac

hinery Annexure - II

9. Shortcoming

i. SIDBI appraisal

ii. Validated DSR iii. Details of building

iv. Commitment regarding utilization of 60% of the installed capacity by SPV members v. By-laws of SPV and SPV commitment regarding their contribution

vi. Technical Committee desired clarification regarding ‘MS tools worth Rs. 1.23 lakh, which are

taken part of the machinery and equipment and not as consumable’, Justification for MS

tools Stock Pot Die, Stock Pot Spinning Punch Die etc. may be obtained. Committee desired a report from MSME officials. MSME-DI, Chennai has been requested to send the

report.



proposal for setting up of Common Facility Centre (CFC) for Stainless Steel Utensils Cluster,

Kumbakonam, Thanjavur District, Tamilnadu to accord in-principle approval.

Particulars Amount (Rs. in lakh)

1 Building 16.00

2 Machinery and equipments 104.95

3 Electrical installations 2.00

4 Pre-operative exp. 2.00


Total 126.51


lakh)


2. Grant-in-aid from Govt. of Tamilnadu 6.24 7.90


Total 100% 126.52

40


Cluster, Ambattur, Tamilnadu

Director and Commissioner of Industries and Commerce, Govt. of Tamilnadu has

submitted a proposal for setting up of CFC in Engineering Cluster, Ambattur, Tamilnadu. Salient

features of the cluster and the proposal are as follows:




of cluster \

Ambattur, Chennai District.


(page – 8 of DPR)

Air, Compressors, Fabrication of Boilers, Electrical

& Electrical M/c parts, Dies and moulds, pulleys, industrial values, iron casting, tools and pressed

components, power equipment, computer hardware accessories, structural fabrication, steel furniture,

Hand tools, Bicycle and parts etc.,



(page – 10 of DPR)

5512 nos. units

Large – 37, Medium units – 125 nos, Small units – 1000 nos. & Micro units – 4350 nos.

e. Turnover (p7 of DSR) Rs 43875 cr (Rs 17550 cr for micro and small)

f. Exports (p7 of DSR) Engineering Products – Rs 10538 cr (Rs 5322 cr for

micro and small)

g. Employment in Cluster 41,000 nos. directly

h. Technological Details (p7 of DPR)

Mostly micro units have very limited capacity with old / obsolete machineries (lathe, frilling, grinding/

turning, shaping etc)



(page – 11 of DPR) • Low technology level.

• Inability compete with medium players.

• High cost of utilities.

• Scarcity of raw materials.

• Inability to access research and development facilities.

• Inadequate infrastructure facilities in respect of micro industries.

k. Main Problems of cluster (p–10 of DSR)

• Shortage of skilled manpower.

• Absence of Product Engineering & system development facility (CAD/CAM/CAE).

• Absence of economies of scale in case of micro enterprises.

• More of low-value added services (job shops)



Location of CFC

(p-7/DPR)

Ambattur, Chennai.

41

Land for CFC (p-17/DPR)

Weather land

acquired

Rented Accommodation (monthly rent of

Rs 2 lakh)

Title is in name

of

N A

Valuation and its

basis

Not given

Land is sufficient Details not given

Change of land

use


If on lease,

duration of lease


Whether lease is

legally tenable


Total Building

area (sq ft)


Rate of

construction of

building


Major Outputs of

CFC,

Projected

performance of

cluster after

setting up of CFC

Paramete

rs

Pre

Interventio

n

Immedi

ate

after

formati

on of

CFC

Anticipated

visible

benefit in

future

Not given

Pollution clearance

required or not


Main facilities

proposed

(Page – 2&7/

DPR)

• Common Processing Centre.

• Testing Centre.

• Tool Room cum Training Centre.

Prod capacity of

CFC


Man power in

CFC (p 33 of

DPR)

128 nos.

Revenue

mechanism for sustainability of

CFC (by user charges, etc)

Revenue generation calculated on job

work per machine, per hour basis.

Estimated net profit for 1st &

2nd

year. (p35/c)

1st Year – Rs. 60.78lakh

2nd Year – Rs. 65.56 lakh

42


a. Description As per proposal Remarks, if any

b. Name and address (P-3

of DPR)

M/s Ambattur Tapstia Engineering

Consortium Private Limited.,

No. 203, New Tiny Sector, Park

Road, Ambattur Industries Estate,

Chennai

c. Nature of SPV (company or Society or

Trust)


d. Name of the state Govt

and MSME officials in SPV

Not given in the list of SPV. One Official

each from State Govt., MSME

should be accommodated.

e. Date of formation of SPV (P-MoA in DPR)

4th

September 2009

f. Number of MSE Member Units (P-1-5

of AoA)

45 nos.

g. Bye laws or MA and

AoA submitted

Yes

h. Authorized share

capital (P-8 of MoA)

The Authorised share capital of the

Company is Rs.1000000 divided into 100000 equity shares of Rs.

10/- each.

i. Shareholding Pattern Information not available


contribution


k. SPV specific A/c Information not available




pursued by SPV

members with

documentation

Soft interventions undertaken by

MSME-DI Chennai under MSE-

CDP during 2008-2011.

m. Technical Institution Information not available

n. CFC may be utilised by

SPV members as also


Evidence FOR SPV


utilise at least 60% of installed capacity

Letter received. The members of

the SPV will be utilizing 60% of

the operating capacity of the CFC

and the other members of the

cluster will be utilizing the balance

40% capacity.

o. Utilities requirement

Power (P-17 of corres.) 300 HP

11 KVA

Water

Gas/Oil/ Other

43

4 Project Cost (P-4/DPR):

(Rs. in lakh)

Particulars Amount

1 Rent Advance 20.00


3 Misc. Fixed Assets 2.50

4 Preliminary Expenses 5.00*

5 Pre-operative expenses, maximum 2% of project cost 10.00*



Total 551.36

* should be restricted to 2% of project cost.

5. Means of Finance (P-4 of DPR):

(Rs. in lakh)





Total 100 551.36



a. BEP (P-47 of DPR) 51.64%

b. IRR (P-49 of DPR) 11.54%

c. DSCR NA


employed (ROCE) (P-48

of DPR)

35.92%

e. NPV at 10% (P-49 of

DPR)

Rs. 32.22 lakh

f. DER NA

g. Sensitivity Analysis (P-

51 of DPR)

The sensitivity analysis,

indicate that even if there is

a fall of 5% in the income, the IRR will be still at

8.99% making the project viable.

7. Plant and Machinery Annexure I

(Rs in lakh)



p. Implementation Agency TANSIDCO, Chennai All the projects in

Tamilnadu implemented by TANSIDCO.

q. Commitment of SPV Not given Commitment letter

44

contribution required from SPV.

r. Commitment of State

Government contribution (p-28

of Corres.)

in-principle sanction

given by GoTN vide

letter No.

10029/D1/2009-4

dated 11.08.2008.

s. Commitment of Loans (Working capital and/ or term

loan) (Page – 4/c)

Indian Bank has given in principle sanction

of term loan of Rs 75 lakh & working

capital of Rs 25 lakh.

t. Implementation Period


Within 6-8 months

from the date of approval of the CFC.

Should be 2 years from

final approval.

u. Appraisal of DPR and main recommendations

Appraisal not

received.

Required

v. Comments of Technical Division

Proposal is viable.

9 Shortcomings:

� No appraisal report received. � CFC proposed in rented accommodation, however no information about lease agreement.

� No information bank account details. � The information about export, turnover, employment etc is not clear.





45

Agenda No. 30.68: Proposal to set up Common Facility Centre (CFC) for Plastic Cluster,

District Madurai

Addl. Chief Secretary to Government, Micro, Small and Medium Enterprises (D1)

Department, Govt. of Tamilnadu has submitted a proposal for setting up of CFC in Plastic Cluster,

District Madurai, Tamilnadu. Salient features of the cluster and the proposal are as follows:


a. Name of the cluster Plastic Cluster


of cluster \

Madurai


(page – 1 of DSR)

Household Plastic Items, Plastic Electrical Fittings, Food Packing Containers, Ploy bags, Plastic

hardware fittings, Toys & Cosmetics, Industrial products, Baby care products



small, medium)

(page – 1 of DSR)

500 Micro & 300 Small

(SC/ST entrepreneurs-100, Minority- 200, OBC &

Others-500, Women- 100)


the last five years

Presently Rs. 100.00 crore


the last five years

Information not given

g. Employment in Cluster Direct- 36000 & Indirect-42000

h. Technological Details Injection and blow moulding with Obsolete

technologies



(page – 32 of DPR) • Largely unorganized and scattered.

• Getting the mould designed with the latest technology especially for the export market is

their major problem. At present they depend on

other states for latest designs.

• Inconsistent supply and control of raw materials by few big suppliers.

• Obsolete technologies are followed by most of

the cluster members.

• Machinery cost for bulk production is higher

on account of age old machines leading to

uncompetitive rates.

• No testing centre to ensure the quality of the products supplied.


(page – 31 of DSR) • Low per capita consumption of plastic.

• Lack of professional management.

• Monopoly control on raw material.

• Lack of Research & Development

• Obsolete technology

• Poor economics of scale.

• Poor linkages with BDS & Support service providers.

46



a. Land for CFC (P-11 of corrs.)

i. Weather land

acquired

SPV informed vide letter dated

16.04.2010 that land has already procured within SIDCO

Industrial Estate, Kappalur, Madurai, for Rs 32 lakh.



basis




of lease


legally tenable

b. Total Building area (sq

ft)

Not given Details of building

along and

estimated cost

required. c. Rate of construction of

building

Estimated Cost Rs. 100.00 lakh

d. Major Outputs of CFC,


of cluster after setting up

of CFC

Para

mete

rs

Pre

Interventi

on

Immedi

ate after

formatio

n of

CFC

Anticipated

visible

benefit in

future

Information not given

e. Pollution clearance

required or not Information not given Consent to

establish required.


(P – 2 of DPR) • Design Centre

• Processing Centre

• Quality Control & Testing Centre

• Training Centre

g. Prod capacity of CFC Not Given

h. Man power in CFC

(P – 30 & 31 of DPR)

23 nos.

i. Revenue mechanism for

sustainability of CFC

(by user charges, etc)

(p-37 of DPR)

Training- 12.96 lakh

Testing- 3.02 lakh

PM operations- 23.85 lakh Moulds making - 132.48 lakh

TOTAL - 172.31 lakh

j. Estimated net profit for

1st & 2

nd year.

(P-38 of DPR)

1st year – Rs 30.23 lakh

2nd

year- Rs 36.29 lakh



a. Name and address

(p-3 of DPR)

M/s Plasma Tool Room Cluster

Pvt. Ltd. 34/1, West Avani Moola Street, Madurai- 625 001

b. Nature of SPV Private Ltd. Co.

47



SPV

-- Provision in Bye

laws required


SPV

29.08.2008

e. Number of MSE

Member Units

30 nos.


AoA submitted

Yes

g. Authorized share capital Rs 5.00 lakh divided into 50,000

shares

h. Shareholding Pattern

(p49 of DPR)

Given


contribution (p48 of

DPR)

Given

j. SPV specific A/c

(p-11/c)

Punjab National Bank

A/c No. 4383002122509599



co-operative initiatives pursued by SPV

members with documentation

(p-11/c)

SPV in association with MSME-

DI, Chennai has conducted

awareness program, Technical seminars, like waste management

etc. for cluster. Also conducted training programmes on quality

management, production planning and new investment opportunities

in plastic industries. They are also encouraging aspiring

entrepreneurs to venture into plastic sector by giving all

technical inputs to them.

l. Technical Institution Information not given.


SPV members as also


Evidence FOR SPV


utilise at least 60% of installed capacity (p-54

of DPR)

Given


Power 150 HP

Water

Gas/Oil/ Other Annual Fuel Cost: Rs. 4.61 lakh

48

4 Project Cost:

(Rs. in lakh)

Particulars (p-19 of DPR) Amount

1 Land 35.00

2 Building 90.00



5 Preliminary expenses 10.00*

6 Pre-operative expenses 15.00*

7 Provision for contingencies (Building 2% & Plant & Mach. 5%) 18.35


Total 524.42

*Both combined Should be restricted to 2% of project cost.


(Rs. in lakh)





4. Bank Term Loan 14.30 75.00

Total 100 524.42


Parameter As per proposal Remarks, if

any

a. BEP 48.60%

b. IRR (p-62 of DPR) 13.06%

c. DSCR 4.24


(ROCE)

29.66%

e. NPV (p-59 of DPR) Rs 60.14 lakh

f. Sensitivity Analysis (p-62 of

DPR)

o.k

7. Plant and Machinery Annexure-I



a. Implementation Agency TANSIDCO

b. Commitment of SPV contribution

Received (p49 DPR)


Specific letter not recd. DPR forwarded by state govt.

d. Commitment of Loans (Working capital and/ or

term loan)

Not given

e. Implementation Period 6 months Should be 2 years

49

(P – 18 of DPR) from date of final

approval.

f. Appraisal of DPR and


Appraisal from PNB recd. Appraisal is not as

per SIDBI format.

g. Comments of Technical

Division

Chemical Div has partially

supported proposal. It has

suggested not allowing common plastic processing machines. Mech

Division has sought details of machines. State govt/ MSME-DI

have been requested to send

details/ comments on 5.4.11 and

12.5.11. Reply awaited.

9 Shortcomings

(i) Appraisal is not as per SIDBI format. (ii) Details of building

(iii) Chemical Div has partially supported proposal. It has suggested not allowing common

plastic processing machines. Mech Division has sought details of machines. State govt/

MSME-DI have been requested to send details/ comments on 5.4.11 and 12.5.11.

(iv) Major Outputs of CFC in quantitative terms

9 Proposal for the Steering Committee: Cluster division recommends the proposal for ‘In-principle’ approval so that complete proposal is submitted by the State Government within 6



50


Cluster, Paramakudi, Ramanathanpuram, Tamilnadu

Industries & Commerce Department, Govt. of Tamilnadu has submitted a proposal for setting up

of CFC in Engineering Cluster, Paramakudi, Ramanathanpuram. Salient features of the cluster




b. Location of Cluster/ spread of

cluster (page – 1 of DSR)

Paramakudi, Ramanathanpuram


(page – 9of DPR)

single or double brake AB switches, Aluminum

knobs, Transformers bushing clamps, earthing rods, LT open type fuse sets, line material for distribution

of electricity, etc.

d. No. of Enterprises including break

up (micro, small, medium)

(page – 1 of DSR)

47 Micro

e. Turnover (Rs in crore) for the last five years

45.78 (one year)

f. Exports (Rs in crore) for the last five years

No information

g. Employment in Cluster (p-8 of the DPR)

765

h. Technological Details Low level of technology using traditional machines for machining and fabrication.

i. Whether DS conducted (vide letter

dated 11.11.09 of SPV enclosed in

DPR)

Yes, DSR is validated on 3.11.2009


(page – 14 of the DPR)

� CFC for structural fabrication center required

� Training center with R & D facilities

� The CFC in the second phase should have a hot

dip galvanizing plant


(page – 27 of DSR)

� Obsolete technology used in the cluster.

� Absence of sufficient testing facilities.

� Increase in cost due to transporting & loading

and unloading.

� Inability to expand market in private sector

with the existing infrastructure.



a. Location of CFC Paramakudi,

Ramanathanpuram District

b. Land for CFC

i. Weather land

acquired (P-41 of the

corres.)

Vide letter dt. 24.3.11, Govt. of

Tamilnadu has informed that the

land required for the CFC (1.21

acres) has been purchased and

registered. Sale Deed is yet to be

delivered by the Registrar. Vide



basis

51

iv. Land is sufficient letter dt. 10.6.11, Govt. of

Tamilnadu has been requested for

Sale Deed. The same is still awaited. w. Change of land use


of lease


legally tenable

c. Total Building area (sq

ft)

No information


building

No information



of cluster after setting

up of CFC

No information Before setting

up of CFC

After … years of CFC

Production (Rs in

cr)

Not mentioned.

Export (Rs in cr)


required or not

No information

g. Main facilities

proposed

(Page – 2of DPR)

Structural Fabrication Centre,

R&D Cum Testing and Training Centre

h. Man power in CFC (p-29-30 of DPR)

28 Nos.

i. Estimated net profit for 1st & 2nd year. (p-36 of

DPR)


2nd year – Rs. 14.49 lakh



a. Name and address Paramakudi Engineering

Cluster Private Limited

b. Nature of SPV

(company or Society or

Trust)

Companies Act



SPV

Not given in the list of SPV. One Official each

from State Govt. and

Ministry of MSME

should be

accommodated in

SPV.


SPV

8.7.2008

e. Number of MSE

Member Units (P-3 of

DPR)

25 Nos. However,

shareholding detail for 16

members given. Clarification

awaited from State Govt.

f. Bye laws or MA and AoA submitted

Yes

g. Authorized share capital (P-45/c)

Rs 20.0 lakh

h. Shareholding Pattern Shareholding detail available Details required

52

(P-45/c) for 16 members out of 25.


contribution

Not available Required

j. SPV specific A/c (P-

46/c)

A/c No. 867831825 Indian

Bank, Madurai,

Ramanathanpuram



a. Implementation Agency TANSIDCO, Chennai

b. Commitment of SPV contribution Not given Commitment letter is

required.

c. Commitment of State Government

contribution (P-26 of the corres.)

In-principle approval

given.

d. Commitment of Loans (Working

capital and/ or term loan) (P-42 of

the corres.)

Indian Bank has also

approved sanction of

Rs. 39.0 lakh loan.

e. Implementation Period (P-19 of

the DPR)

6 months Should be 2 years

form date of final approval

f. Appraisal of DPR and main recommendations

Indian Bank has mentioned that project

may be termed as technically and

financially viable.

Annexure I

Appraisal by bank

does not confirm

about the viability

of the project.

Detailed appraisal

in SIDBI format is

required.

g. Comments of Technical Division

(p35/c)

Technical Division has

supported the proposal.

5 Project Cost: (page 4/DPR)

(Rs. in lakh)

Particulars Amount

1 Land and Site Development 15.00

2 Building 50.00



5 Preliminary expenses 2.00*

6 Pre-operative expenses 5.00*



Total 233.39

*Both combined should be restricted to 2% of project cost.

6. Means of Finance: (page 4/DPR)

(Rs. in lakh)



2. Grant-in-aid from Govt. of India 133.47

3. Grant-in-aid from Govt. of Tamilnadu 23.34

53

4 Bank Loan/ others 39.0

Total 233.39



a. BEP (p-42 of DPR) Rs. 44.81 lakh

b. IRR (P-44 of the DPR) 12.75%

c. DSCR (P-40 of the DPR) 4.07


employed (ROCE)

28.82%

e. NPV at 10% (P-44 of

the DPR)

23.63 lakh

f. DER Not given

g. Sensitivity Analysis (P-

45 of the DPR)

Sensitivity analysis, indicate

(with 5% fall in income,

IRR will be 9.98%) NPV is positive. Average DSCR –

3.55 making project viable.

7. Plant and Machinery Annexure I (p21 of DPR)

9 Shortcomings: (i) Detailed appraisal report required

(ii) Land documents required. (iii) No information about building construction.

(iv) No commitment letter from SPV for contribution.

(v) No information about clearance for pollution, inclusion of one Official each from

State Govt. in SPV.





54

Agenda No. 30.70 Proposal to set up Common Facility Centre (CFC) for Plastic Cluster,

Chennai, Kancheepuram District, Tamilnadu

Principal Secretary to Government, Govt. of Tamilnadu has submitted a proposal for

setting up of CFC in Plastic Cluster, Chennai, Kancheepuram District, Tamilnadu on 27.2.12.



a. Name of the cluster Plastic Cluster

b. Location of Cluster Chennai, Kancheepuram District, Tamilnadu

c. Products of the cluster (P-6

of DPR)

Plastic products like Flat film/ Tapes/ Woven fabric,

Carry bags, Rods tubes pipes, Roofing sheets,

Engineering Automobile parts, Furniture, Toys, Pet bottles, House hold containers.



small, medium) (P-7 of the

DPR)

106 (Micro- 80, Small-20 & Medium-6)


the last five years (P. 7 of

the DSR)

450.00


the last five years

Not given.

g. Employment in Cluster (P.

7 of the DSR)

5800

h. Technological Details (P-

7 of the DSR)

Clusters units are using following technology / methods

- Injection moulding, compression moulding, blow

moulding, rotational moulding, blow film extrusion,

calendaring reprocessing units moulding.

i. Whether DS conducted and

validated. (P. 41 of the

DSR)

DSR prepared by MSME-DI, Chennai in the year 2007.


(P – 32-34 of the DSR) • Formation of raw material bank.

• Common finishing centre.

• Internal corrective mechanism.

• Common production centre.

• Creation of skill development.

• Marketing linkages.

• Integrated production centre.

• Formation of tool room.

• Forward linkages.

• Backward linkages.


(P – 27 of the DSR) • Lack of professional management.

• Monopoly control on raw material.

• Lack of research & development.

• Obsolete technology.

• Poor economies of scale.

• Poor linkages with BDS & support service providers.

l. Other information Cluster units saturated within 30 Kms. Radius in

Pillaipakkam in Kancheepuram District.

55


Description By Implementing/recommending Agency Remarks,

if any

a. Justification for CFC (P. 3

of the DPR)

The proposed CFC will help the cluster

members to enhance their existing

productivity and employment and create

newer markets. It will also help the cluster

members for creating a common brand for

their product to cater to the core corporate

consumers.

b. Location of CFC Chennai, Kancheepuram District,

Tamilnadu

c. Land for CFC (P- 23 of

DPR) Weather land acquired

Title is in name of


Land is sufficient

Change of land use

If on lease, duration of lease

Whether lease is legally

tenable

4.04 acres

Yes

SPV

Not mentioned


(P-25 of DPR)

63958 sq. ft.


building

Not given


(P1- of DPR)

� Common processing centre for Plastic

Woven Fabric with or without

lamination.

� Testing facilities for raw materials,

woven fabric and lamination.

� A centre for training.

g. Major Outputs /



the cluster after proposed intervention (in terms of

production, export/domestic sales and

direct/indirect employment, etc.) (P- 61

of DPR)

Para

meter

s

Pre

intervent

ion

Post intervention

Immedi

ate

after

formati

on of

CFC

Anticip

ated

visible

benefits

in

future

Units 100 115 130

Employme

nt

5000 6000 7000

Turn

over

Rs. 250

crore

Rs. 290

crore

Rs. 330

crore

Expo

rt

- Rs. 8

crore

Rs. 15

crore

Improvement of Net Income

(Profit) at the unit level

56

Description By Implementing/recommending Agency Remarks,

if any

Micr

o

units

Rs. 10

lakh

Rs. 13

lakh

Rs. 15

lakh

SSI

units

Rs. 25

lakh

Rs. 30

lakh

Rs.

32.5

lakh

h. Pollution clearance

required or not

Not given. Information

required.

i. Man power in CFC (P- 37-

38 of the DPR)

216 nos.


mechanism for




specified) (P- 46 of the

DPR)

Revenue has been calculated on the basis on

conversion charges – extruder – I & II, user

charges lamination plant and income from

training etc.


& 2nd

year. (P. 47 of the

DPR)

1st year - Rs. 158.30 lakh

2nd

year – Rs. 169.61 lakh



i. Name and address M/s Chennai Plastic Sacks

Cluster Private Limited, No. 32,

Cathedral Road,

Gopalapuram, Chennai

ii. Nature of SPV (company or

Society or Trust)

Private Limited

iii. Name of the state Govt. and


As per MoU, a representative of

the State Govt. of Tamilnadu

shall be accommodated in SPV

State Govt. officials

yet to be nominated.

There is no provision

of MSME official in

SPV.

iv. Date of formation of SPV (P- 23

of DPR)

19.10.2010

v. Number of members (P- 23 of

DPR)

39

vi. Bye laws or MA and AoA

submitted

Yes

vii. Authorized share capital ( as per

AoA)

Rs. 70.00 lakh divided into

7,00,000 equity share of Rs. 10/- each

viii. Paid up capital as on 1st March

2011(P- 23 of the DPR) Rs. 70.00 lakh

ix. Shareholding Pattern Given in MOA

x. Commitment letter for

contribution

Commitment letter given

xi. SPV specific A/c Oriental Bank of Commerce

57


A/c 05811131001690

xii. Trust building of SPV, Previous

track record of co-operative

initiatives pursued by SPV

members need to be highlighted

with support documentation

Soft interventions approved in

first SCM held on 25.6.08. Rs.

6.52 lakh released and various

activities organized by MSME-

DI, Chennai.

xiii. Technical Institution (P. 1 of the

DPR)

CIPET, Chennai

xiv. CFC may be utilized by SPV



should be furnished with regard to SPV member ability to utilize

at least 60 per cent of installed capacity.

Received

xv. (b) Power requirement for commercial/ domestic purpose

(c) Water (P-39 of DPR)

(d) Gas/Oil/ Other utilities

1350 KVA

190 liters per day


Particular As per proposal Remarks if any

Implementation Agency TANSIDCO, Chennai

Implementation Period (P- 59 of DPR)

12 months from the date of approval and sanction by GoI

Should be 2 years from date of final approval.

Appraisal of DPR and


Report appraised by OBC.

Main recommendation is

sanction of term loan of Rs.

100.00 lakh and WC Rs. 20.00

lakh. Annexure-

Appraisal report is not as

per the SIDBI format.

Comments of Technical

Division The proposal is for setting up

of complete production units

of very high capacity and not

the complementary process for the manufacture of woven

fabric/sacks for the cluster

members. This will affect the

existing woven fabric/sacks

manufacturing units in the cluster. Therefore, tech

division has not supported proposal. Annexure -

5. Financial Analysis of CFC (P. 52-55 of the DPR):

Particulars Implementing Agency Remarks, if any

ff. BEP 49.01%

gg. IRR, payback period 14.51%

hh. DSCR 12.13

58

Particulars Implementing Agency Remarks, if any

ii. Return on Capital employed

(ROCE)

26.53%

jj. NPV @ 10% Rs. 220.74 lakh

kk. DER N/A

ll. Sensitivity Analysis (P. 58

of the DPR)

The project is still viable.

mm. Working capital (In-principle

sanction of loan from a bank,

if applicable

arrangement made)

In-principle approval for given by

Oriental Bank of Commerce, Br.

Moulivakkam, Chennai

6. Total Cost: The total cost of the CFC is as follows:

Particulars Total Cost (Rs.

in lakh)

1 Land 58.00

2 Building 235.00


4 Misc. Fixed assets 97.74

5 EB Deposit 5.00

6 Preliminary expenses 7.00

7 Pre-operative expenses 13.00



TOTAL 1485.12


Particulars %age Amount (Rs. in lakh)





Total 1485.12

8. Plant and machinery - Annexure

9. Shortcomings: i. Technical division has not supported CFC mentioning that proposal is for setting up of

complete production units of very high capacity and not the complementary process for the cluster units

ii. Pollution clearance, Details of building construction

10. Proposal for the Steering Committee: Cluster division recommends the proposal of

CFC for Plastic Cluster, Chennai, Kancheepuram District, Tamilnadu may be rejected.

59

Agenda No.30.71 Proposal for setting up of CFC in Lorry Body Building Cluster,

Namakkal, Tamilnadu

Industries Commissioner and Director of Industries & Commerce, Govt. of Tamilnadu

has submitted the proposal for setting up of CFC in Lorry Body Building Cluster, Namakkal,

Tamilnadu. Salient features of the cluster and the proposal are as follows:

1. Name of the cluster Lorry Body Building Cluster

2. Location Namakkal, Tamilnadu

3. Products (page – 8/DPR) Truck body building.

4. Age of the cluster Since 1956

5. No. of Units (P- 8/DPR) 120 Nos.

6. Type of units Information not available.


NGO


8. Formation of SPV (p-3 of

DPR)

M/s. Namakkal District Lorry Body Builders Private

Limited

9. Employment (P-8/ DPR) 25000 Nos.

10. Turnover / Export Information not available

11. Implementing Agency TANSIDCO, Chennai

12. Problems of the units � Non availability of skilled or suitable labour for bus

body enterprises. � High cost of raw material such as aluminum sheets,

toughened glass. � High cost of power.

� Non availability of designing centre and R&D institutions.

13. Recommendations in the

Diagnostic Study Report

(p-12 of DPR)

• Formation of a common raw material bank within the cluster for cost reduction.

• Creation of a common components manufacturing centre for manufacture of type approved cabin

components (kits) and other major components for body satisfying the norms of AIS 29 and AIS 93.

• Formation of an Integrated Production Centre for processes like MIG welding, planting etc, for quality

improvement, cost reduction.

• Creation of Research and Development and Testing

facilities.


Particulars Amount


2 Building 100.00



5 ED Deposit 2.00

6 Preliminary expenses 10.00

7 Pre-operative expenses 15.00

8 Contingency (2% building and

5% on plant and machinery)

60.79

9 Margin money for Working

Capital

75.00

Total 1473.61

60

15. Means of finance (In

lakh) Particulars %age Amount


2. Grant-in-aid from Govt.

of India

75.14 1107.29


of Tamilnadu

6.69 98.53


Total 100.00 1473.61

16. Facilities to be created in

the CFC • Common Components Manufacturing Centre.

• R&D Cum Testing Centre.

• Training Centre.

17. Plant and machinery Annexure-

18. Shortcomings • Land with clear title.

• Turnover of the cluster.

• Bank account details.

19. Comments of Cluster

Division

The proposal envisages purchase of raw material and sale

of products. There is no provision of user charges and hence proposal is not for common facility (not as per

scheme guidelines). Proposal may be accepted.

Proposal for the Steering Committee: Cluster division recommends the proposal of CFC in Lorry Body Building Cluster, Namakkal, Tamilnadu may be rejected.

61

Agenda No.30.72 Proposal for setting up of CFC in Engineering Cluster, Perungudi,

Tamilnadu

Industries Commissioner and Director of Industries & Commerce, Govt. of Tamilnadu has

submitted the proposal for setting up of CFC in Engineering Cluster, Perungudi, Tamilnadu.



b. Location (P-5/DPR) Parungudi, Kancheepuram District

c. Products (P – 15\DPR) Automobile spares, tool room items, dies, jigs, fixtures,

punches, cutting tools, machine tools, industrial valves,

pump spares, gas cuts, panel boards, aluminum body

volves for automobiles and tapcet for automobile.

d. Age of the cluster Information not available.

e. No. of Units and its type

(P- 5/DPR)

Large – > 20 in Chennai Medium / Traders - > 20 in Chennai

Small/ Partially Mechanized - > 100 in Chennai Micro & Tiny Industries - Approx. 2000 in Perungudi and

surrounding.

f. Existence of Association /

NGO


g. Formation of SPV (P-

385/c)

Parungudi Engineering Cluster Private Limited

h. Employment (p-5/ DPR) 40000 (Direct-10000 & Indirect-30000)

i. Turnover / Export (p–5/DPR)

Rs. 12.00 crore / Information not available.

j. Implementing Agency TANSIDCO, Chennai

k. Problems of the units (p–

10/DPR) � Problems in procurement of raw material and

consumables.

� No awareness of technology upgradation.

� Non-availability of modern and precision instruments

in micro units.

� Undercutting among the members.

l. Recommendation of the

DSR (P-8 of DSR) � No facility for research and development.

� Product design and engineering capabilities

constrained due to absence of economies of scale.

� Low volume of production.

� Conventional machines are not able to meet the

precision manufacturing.

� Sub standard industrial infrastructure.

m. Cost of the project (p-

23/DPR):

Particulars Amount

(Rs. in lakh

1 Land Existing

2 Building Exiting

3 Machinery and implements 60.00

4 CAD/CAM Software 2.50

5 CAD workstation 2.00

6 Generators 4.00

7 Office equipments and furniture

1.00

8 Deposits 1.00

62

9 Preliminary and pre-

operative exp.

1.00


11 Working capital margin 2.50

Total 77.00

n. Means of finance (p-

63/DPR)

Particulars Amount

(Rs. in lakh)


India

59.60


Tamilnadu

7.45

3. Consortium 5.50

4. Bank Loan 4.45

Total 77.00

o. Facilities to be created in

the CFC (p-341/c) • Manufacturing of quality and value added engineering

products especially auto components.

• Training.

• Testing

• Product development

p. Plant and machinery Annexure -

q. Shortcomings SIDBI, Mumbai has informed vide letter dated 20.12.11 that viability of Proposal Is Doubtful and account of SPV

is already NPA in Central Bank of India. Proposed proposal of expansion of CFC is not viable and support

worthy. Annexure – SIBDI letter.

Proposal for the Steering Committee: Cluster division recommends the proposal of CFC in

Engineering Cluster, Perungudi, Tamilnadu may be rejected.

63

Agenda No.30.73 Proposal for setting up of CFC in Pharma (MICAL) Cluster, Chennai,

Tamilnadu

Industries Commissioner and Director of Industries & Commerce, Govt. of Tamilnadu has

submitted the proposal for setting up of CFC in Pharma (MICAL) Cluster, Chennai, Tamilnadu.


a. Name of the cluster Pharma (MICAL) Cluster

b. Location (P-12/DPR) The pharma units are spread over the three regions viz

Chennai central, south and north.

c. Products (P – 23\DPR) Tablets, capsules, syrups, dry syrups, powders, injection,

ointments & lotions and raw drugs etc.

d. Age of the cluster (p-39 of

DPR)

50 years.

e. No. of Units (P- 8/DPR) 350 nos. units (Large – 19, Small and Medium – 136 & Micro – 195 nos.)

f. Type of units All are micro units

g. Existence of Association /

NGO


h. Formation of SPV (p-38

of DPR)

The Chennai Industrial Cooperative Analytical Laboratory

Ltd. (formally known as the MICAL) Guindy, Chennai – 600032

i. Employment (p-28/ DPR) 81000 nos.

j. Turnover / Export (p–

28/DPR) Rs. 2152. 0 Crore/ Rs. 500.0 Crore

k. Implementing Agency TANSIDCO, Chennai

l. Problems of the units (p–

30/DPR) • Poor R&D infrastructure facilities.

• Insufficient facilities on quality control and testing laboratory.

• Over dependence on imported raw materials.

• Cumbersome legal formalities on Schedule M & Schedule T.

• Non protection of traditional medicine practitioners.

• Improper distribution system.

m. Cost of the project (p-

63/DPR):

Particulars Amount

1 Land Existing

2 Building and Civil works Existing

3 Equipments 332.64

4 Working capital 10.00

5 Preliminary and Pre-operative exp. 0.00

Total 342.64

n. Means of finance (In

lakh) (p-63/DPR)




of India

77.66 266.11


of Tamilnadu

10.00 34.26

Total 100.00 342.64


• Upgrading MICAL as Export Inspecting Agency

64

the CFC • Calibration and Validation of Instruments.

• Training Centre

p. Plant and machinery Annexure -

q. Shortcomings • Projected performance of the cluster after setting up of

CFC.

• SPV member details.

• Proposal as per Annexure-II of guidelines.

• Land document with clear title.

• Detailed appraisal report as per SIDBI format.

r. Comments of Technical

Division

There are nos. of NABL a credit laboratories for

pharmaceutical testing in the cluster are in Chennai.

FURTHER SETTING UP OF SUCH FACILITIES IS

NOT JUSTIFIED. Annexure -

Proposal for the Steering Committee: Cluster division recommends the proposal of CFC in

Pharma (MICAL) Cluster, Chennai, Tamilnadu may be rejected.

65

Agenda No.30.74 Proposal for setting up of CFC in Rice Mill Cluster, Kangayam,

Tiruppur, Tamilnadu

Principal Secretary to Govt., Govt. of Tamilnadu has submitted the proposal for setting up of CFC

in Rice Mill Cluster, Kangayam, District – Tiruppur, Tamilnadu. Salient features of the cluster


a. Name of the cluster Rice Mill Cluster

b. Location Kangayam, District – Tiruppur, Tamilnadu

c. Products Boiled rice.

d. Age of the cluster (p-8 of

DPR)

After 1991 has cluster lead to growth.

e. No. of Units (P-7/DPR) 350 nos. (100 nos. rice mills are located in Kangayam Taluk alone).

f. Type of units Information not available.

g. Existence of Association /

NGO


h. Formation of SPV (p-3 of

DPR)

M/s. Kangayam Rice Mill Cluster Private Limited

i. Employment Information not available.

j. Turnover / Export Information not available.

k. Implementing Agency TANSIDCO, Chennai

l. Recommendations in the

Diagnostic Study Report

(p-10 of DPR)

• Storage techniques for paddy.

• Generation of steam for boiling, installation of

pressure boiler.

• Soaking & boiling techniques.

• Drying techniques.

• Thickness grader for removing broken.

• Colour sorters.

m. Cost of the project (p-25

of DPR)

Particulars Amount


2 Factory Building 30.00


4 Misc. Fixed Assets 5.00

5 Preliminary Exp. 5.00

6 Pre-operative Exp. 5.00

7 Provision for contingencies (Building 2% and Plant &

Machinery 5%)

33.22

Total 750.53

n. Means of finance (In

lakh) (p-25 of DPR)




of India

70 525.37


of Tamilnadu

10 75.05


Total 100.00 750.53


the CFC (P-12 of DPR) • Common Processing cum Storage (SILO) Centre.

• Common Testing Centre cum Training Centre.

• Common Weigh Bridge.

66

p. Plant and machinery Annexure-

q. Comments of Technical

Division

Technical Division supported the CFC proposal.

Annexure -

r. Any other information SILO storage system is the major portion of the machinery

of CFC

Shortcomings

• Diagnostic Study Report.

• Commitment regarding contribution of SPV.

Proposal for the Steering Committee: Cluster division recommends the proposal for ‘In-



proposal of in-principle approval for setting up of CFC for Rice Mill Cluster, Kangayam, District

– Tiruppur, Tamilnadu.

67

Agenda No. 30.75 Proposal for formation of New Industrial Estate at Mathur (New),

Pudukkottai District, Tamilnadu.


p. Proposals received from


the State Govt.

Tamilnadu Small Industries Development

Corporation Ltd.

Yes

q. Location of site Mathur, Pudukottai District

r. Whether appraised DPR with approved

layout plan received or not

Yes

s. Total Area of industrial estate/ area (acre) 19.92 acres

t. Area to be developed (acre) 19.92 acres

u. Number and sizes of plots to be developed 40 plots

Micro (upto 15 cents)-13 Small (Below 1 acre)- 27

v. Implementing Period 15 months

w. Other ID projects sanctioned in same


No

x. Performance of ID projects in state. 12 projects sanctioned for new Industrial Estates. Out of which, 7 projects have been

completed and remaining projects are being implemented. 13 existing industrial estates for

infrastructure upgradation have also been sanctioned, out of which 7 projects have already

been implemented and 6 projects are under implementation.



Cluster Division

a. Implementing Agency (IA): Tamilnadu Small Industries

Development Corporation

Ltd.(TANSIDCO)

b. Track Record of the IA TANSIDCO has completed 13

proposals for infrastructure

development

Track record is

satisfactory.


(Observations and

recommendations). Attach

SIDBI report. (P-15/16 of

SIDBI report)

� About 40 Industrial units are

likely to come up in proposed

industrial estate which will

provide direct employment to

about 400 persons and indirect employment to 200.

� Pudukottai district is notified as industrially backward area.

Proposed industrial estate is 20 Kms away from BHEL.

Existing industrial estate at Mathur village is just opposite

to the proposed industrial

68

estate which was established

during 1980. All plots were

allotted and all the units are

functioning well.

� Proposal broadly conforms to

guidelines under MSE-CDP.

� Taking an overall view,

particularly in view of likely

benefits accruing to units

likely to be set up in industrial

estate, proposal is considered

to be support-worthy.



highways, availability of water supply, adequate power

supply, telecom facilities, dwelling places of workers)

Proposed industrial estate is

located at just 200 metres away from National Highway No. 210

which connects Trichy, Pudukottai and

Ramanathapuram and 15 kilometeres from Trichy.

Nearest railway station is Trichy (20 kms) and airport in Trichy

(15 kms). With regard to power,

the nearest sub-station is at

Kumaramangalam, which is 3

kms from proposed site.

e. Whether land is in possession

in the name of IA with Clear

Title

Yes (Land document in local

language)







Constituted

State Level Committee is

already Constituted for infrastructure projects.

h. Whether confirmation received

form IA that it will meet the cost in excess of approved

project cost and any escalation in cost.

Specific confirmation not

received

DPR has been

forwarded by State Government and

TANSIDCO.

i. Basis of elements of project Cost (P-11 of SIDBI report)

As per SIDBI report, TANSIDCO has indicated that

detailed estimates have been prepared as per PWD and

Highways Department, GoTN


project

(Rs. in lakh)

Description Year ending 31st

March

2012 2013 2014

Sale of plots in % 15% 75% 10%

Area in acres 1.97 9.85 1.31

Developed plot cost per 30.43 33.47 36.51

69

acre

Sale value of developed

plot allotted

52.12 286.66 41.59

Administrative charges 7.82 43.00 6.24

Value of developed plot

allotted

59.94 329.66 47.83

Margin money receivable 13.03 71.67 10.40

Balance plot cost

receivable

46.91 295.42

Receipts for the year 13.03 118.58 305.82

3. Project Cost:

Rs. Lakh)

Particulars Estimated by IA Recommended

by SIDBIand as per

MSE-CDP

x Cost of land filling/leveling including

boundary wall and fencing

55.00 55.00

xi Cost of Laying roads 117.00 117.00

xii Drainage 24.00 24.00

xiii Water supply arrangements including

overhead tanks & pump houses

20.00 20.00

xiv Street light arrangements including setting up of EB pillar box, EB service

connection charges & shifting of EB lines

13.00 13.00

xv Road side greenery 1.00 1.00

xvi Water harvesting 0.50 0.50

xvii Contingencies & pre-operative expenses 9.50 4.50

Total 240.00 235.00



IA

Proposed by SIDBI as

per MSE-CDP

v GoI Grant under MSE-CDP 144.00 141.00

vi TANSIDCO contribution 96.00 94.00

Total 240.00 235.00

5. Proposal for the Consideration of the Steering Committee: Cluster Division recommends the proposal. Committee may consider the proposal for approval for setting up of

new Industrial Estate at Mathur District Pudukottai, Tamilnadu at project cost of Rs. 235.00 lakh

with GoI assistance of Rs. 141.00 lakh.

70

Agenda No. 30.76 Proposal for formation of new Industrial Estate at Virudhunagar

(Urban), District Virudhunagar, Tamilnadu



Whether the Proposal

recommended from the State Govt.

Proposal received from TANSIDCO NO

b. Location of site Virudhunagar, District Virudhunagar, Tamilnadu

c. Whether appraised DPR with

approved layout plan received or

not

Yes

d. Total Area of industrial estate/ area (acre)

37.55 acres

e. Area to be developed (acre) 37.55 acres

f. Number and sizes of plots to be

developed (P-15 of SIDBI report)

117 plots

Micro Upto 15 cents 58

Small 0.15 acre to 0.25 acre 51

Medium 0.25 acre to 0.50 acre 5

Others Above 0.50 acre 3

TOTAL 117

g. Implementing Period 16 months

h. Other ID projects sanctioned in

same district: year of sanction, number of plots allotted, units set

up, etc.

This will be second ID centre in the same district. One

project (Virudhnagar) was sanctioned for upgradation in 2007. Project has been completed. As per the guidelines

of MSE-CDP, second/ subsequent project in a district will be considered only if the sites developed in the

earlier project(s) have been allotted. The upgradation work of this project already completed.

i. Performance of ID projects in state.

This office has so far sanctioned 12 projects for setting up of new Industrial Estates. Out of which, 7 projects

have been completed and remaining projects are at various stage of implementation. 13 existing industrial

estates towards upgradation project have also been sanctioned under MSE-CDP, out of which 7 existing

industrial estates towards upgradation project have

already been implemented and 6 upgradation projects are

under implementation.



Cluster Division

a. Implementing Agency (IA): Tamilnadu Small Industries

Development Corporation Ltd. (TANSIDCO), Chennai

b. Track Record of the IA TANSIDCO has completed 13 proposals (including 6 upgradation) for

infrastructure development

Track record is satisfactory.


(Observations and recommendations). Attach

� 117 Industrial units are likely to

come up in proposed industrial estate which will provide direct

71

SIDBI report. (P-16/17 of

SIDBI report)

employment to about 200 persons

and indirect employment to 600

persons.

� SIDCO Industrial Estate near the

proposed estate at Virudhunagar are

Madurai Industrial Estate and

Kappalur Industrial Estate. All the

plots and sheds of these industrial

estates are allotted and sale deed

executed. Proposed IE will fulfill

the need of upcoming

entrepreneurs. � Proposed industrial estate will

generate revenue of Rs. 251.47 lakh in next 3 years from the sale of plots

which include Admin charges.



highways, availability of water supply, adequate

power supply, telecom


workers)

The proposed industrial estate lies

bordering State Highway No. 182 and is 20 kms away from Sivakasi. The

proposed site is also 0.5 kms from NH-7. Nearest Bus Terminus is

Virudhunagar (2 kms), Railway Station-

Virudhunagar (3 kms), Airport-

Madurai (42kms), Sea port- Tuticorin

(85 kms), Post office & Telephone

exchange – Virudhunagar (2 kms).

e. Whether land is in

possession in the name of IA

with Clear Title (P-10 of

SIDBI report)

Yes, the District collector has

transferred an extent of 37.55 acres of

dry land at Virudhunagar for proposed

ID centre.







Constituted

State Level Committee is already

Constituted for infrastructure projects.

h. Whether confirmation

received form IA that it will meet the cost in excess of

approved project cost and any escalation in cost.

Specific confirmation not received

i. Basis of elements of project Cost (P-11 of SIDBI report)

As per SIDBI report, TANSIDCO has indicated that the detailed estimates for

the work have been prepared as per the

guidance rate of the PWD and

Highways Department, Govt. of

Tamilnadu.


project (Annex-I of SIDBI

report)

(Rs. in lakh)

S.

No.

Description Financial Year

72

Developed plot sales 2012-13 2013-142014-15

1 Sale of plots in % 25% 65% 10%

2 Area in acres 5.62 14.61 2.25

3 Developed plot cost

per acre

10.31 11.34 12.37

4 Sale value of

developed plot

allotted

50.38 144.08 24.21

5 Administrative

charges

7.56 21.61 3.63

6 Value of developed

plot allotted

57.94 165.69 27.84

7 Margin Money

receivable

12.60 36.02 6.05

8 Balance plot cost

receivable

45.34 151.46

9 Receipt for the year 12.60 81.36 157.51

3. Project Cost:

(Rs. Lakh)

Particulars Estimated by IA Recommended by SIDBI

1. Cost of land filling/leveling including

boundary wall and fencing

24.10 24.10

2. Cost of laying of roads 186.77 186.77

3. Road side greenery and social forestry

2.00 2.00

4. Water supply arrangements including overhead tanks & pump houses

23.57 23.57

5. Water harvesting 1.00 1.00

6. Drainage 44.70 44.70

7. Street light arrangements, including setting up of EB pillar box, EB

service connection charges & shifting of EB lines

30.53 30.53

8. Contingencies & Pre-operative expn. 17.33 6.33

Total 330.00 319.00



IA

Proposed by SIDBI

as per MSE-CDP

1. GoI Grant under MSE-CDP (60% of PC) 198.00 191.00

2. State Government 132.00 128.00

Total 330.00 319.00

5. Proposal for Steering Committee: Cluster Division recommends the proposal. Committee may consider the proposal for setting up of new Industrial Estate at Virudhunagar,

District Virudhunagar, Tamilnadu at project cost of Rs. 319.00 lakh with GoI assistance of Rs. 191.00 lakh.

73

Agenda No. 30.77 Proposal for setting up of Common Facility Centre (CFC) for Auto

Cluster, Bidar, Karnataka

Commerce & Industries Department, Govt. of Karnataka has submitted a proposal for

setting up of CFC in Auto Cluster, Bidar, Karnataka. DPR has been prepared by M/s Brdigecomm

International Pvt. Ltd. Salient features of the cluster and the proposal are as follows:


a. Name of the cluster Auto Cluster, Bidar

b. Location of Cluster Bidar, Karnataka

c. Products of the cluster Heavy & Light vehicles repair work, Fabrication work,

Machine tools (conditioning of components) &

Agricultural Equipments manufacturing



small, medium) (Appraisal

report P-6)

250 micro units are operational located in 32 acre land

known as Mohammadabad Auto Nagar. SIDBI appraisal

note stipulated a condition that SPV will submit

certified copy of EM/documentary proof that at least 50% units are micro to avail proposed 80% GoI grant.

How many units are involved in auto service sector alone is not clear.

e. Turnover for the last five years (p7 of DPR)

2006- Rs. 462 lakh 2007- Rs. 680 lakh

2008- Rs. 910 lakh 2009- Rs. 1278 lakh

2010- Rs. 1500 lakh

f. Exports for the last five

years

Nil

g. Employment in Cluster Direct- 5000 & Indirect- 40000

h. Technological Details Cluster is adopting conventional processing technology for repair work of heavy and light vehicles and

outsourcing precision work to Hyderabad auto units. CFC envisages setting up state of the art workshop for

undertaking repairs of automobiles and manufacturing of some critical components by using CNC machines.

i. Whether DS conducted and validated.

Yes, the State Govt. has completed the diagnostic study at its own and validated by the stakeholders. (Minutes of

validation are not available.)

j. Main findings of DSR The cluster members are using age old technology as a

result the productivity of the cluster is reducing day by

day and are unable to maintain the quality requirement.

The cluster members need machineries like major

engine repair, gearbox repair, differential / housing work and fuel injection pump repair.

k. Main Problems of cluster 1. Lack of advance training facilities. 2. Lack of advance machinery for repairs and job

work. 3. Lack of R&D and product development facilities.

4. Lack of advance technique of servicing.


74


a. Justification

for CFC

(P16 of

Appraisal)

CFC will provide better facilities to all

member units in Auto Cluster to enable them

improve quality and margins. It is also

expected to enlarge employment

opportunities and upgrade the technological

base of the industry in the region. The

facilities would add to direct benefit of

further industrialization of the State and

would contribute to State exchequer.

b. Location of

CFC

Survey No. 45, Chowli Village, Bidar,

Karnataka.

c. Land for CFC Weather

land acquired

Valuation and

its basis

Land is

sufficient

Change of land

use

SPV has been allotted 2 acres land by Govt.

of Karanataka (Appraisal report P-2)

Free of cost (Stamp duty and registration

charges to the extent of 25% i.e. only Rs1.00

lakh have been borne by the Association. (p3

of appraisal)

Yes

The land is converted for Industrial use

mentioned in SIDBI appraisal report

Letter no

DIC/BDR/2011-12/374 dated,

However title deed

not available.

Document required

d. Total Building

area (sq ft)

34350 sq. ft. SIDBI mentioned

cost of construction

appears to be

reasonable e. Rate of

construction of

building

Rs. 500/- per sq. ft.

f. Main facilities

proposed

(Appraisal

report P-34)

• Dismantling, Testing and Calibration Section

• Fitting centre

• Gear box section

• Major Repair & Engine section

• Workshop section

• Final Fitment and testing section

• Emergency section

• Training Design & Research Section

DPR Page 33 (4.1.8)

mentions that Spring

Bush, Head Seats,

Valve Guide, Rubber

Bush and Hose pipe will

be manufactured under CFC. As per MSE-

CDP, Hard Interventions will

consist of creation of tangible “assets” like

Common Production/Processing

Centre (for balancing/

correcting/improving

production line that

cannot be undertaken by

individual units

g. Major Outputs

of CFC,

Projected

CFC is expected to provide additional

2000 new jobs by 2016.

Detailed outputs

required.

75

performance

of cluster

(Appraisal

report P-10)

h. Pollution

clearance

required or not

(Appraisal

report P-12)

It is mentioned in the appraisal report,

‘consent to establish’ before availing grant

from Central/ State Govt. and ‘consent to

operate’ from KPCB within 3 months

from the commencement of commercial

production will be obtained.

NOC is required.

i. Man power in

CFC

(Appraisal

report P-9)

CFC needs 253 men power in beginning.


mechanism for sustainability

of assets

At 70%

capacity

utilization

(Page- 37)

Revenue generation

from

Amount

Inspection, Testing and

Calibration unit

28,08,000

Fitting & Welding centre 54,49,600

Engine lathe work 1,51,58,000

Gear box centre 17,68,000

Differential centre 78,00,000

Bash Pump centre 82,16,000

Drum cutting centre 24,96,000

Parts manufacturing centre

1,37,80,800

Tyre Retreading centre 1,89,00,000

Painting centre 7,65,000

Washing centre 5,40,800

Training centre 19,50,000

TOTAL 7,96,32,000



a. Name and address (Appraisal report P-2)

Mohammadabad Special Purpose Vehicle (CFC)

Association Bidar Taluka, Bidar Distt., Karnataka.

b. Nature of SPV (company

or Society or Trust)

Society registered under

Karnataka Societies

(Registration) Act, 1960

c. Name of the state Govt.


SPV

Not available

d. Date of formation of SPV 16th

April, 2010

e. Number of members 250 members List of appraisal note

shows only 89 members.


AoA submitted

Yes

(Annexure 2)

g. Authorized share capital / Rs. 99.00 lakh Appraisal mentions that

76

SPV contribution SPV is a society which

presently has 250

members. Each member

shall contribute Rs. 40000.

However Rs. 15.30 lakh

has been raised from 89

members.

h. Shareholding Pattern Share divided into 89

members only instead of 250

members.


contribution (Resolution

at Annexure 2)

Received.

j. SPV specific A/c State Bank of India, Bidar,

A/c No. 31593073028

A/c is in name of BIDAR

Auto Cluster, CFC and

not in name of SPV

k. Trust building of SPV, Previous track record of

co-operative initiatives pursued by SPV members

need to be highlighted

with support

documentation.

(Appraisal report P-12)

DSR has been validated by AD, MSME, Gulbarga and

that cluster members have completed major soft

intervention activities and are

ready to take up hard

interventions for setting up

the CFC.

Details of Soft interventions not

available.

l. Technical Institution

(P-27 of DPR)

a) Bridgecomm International

Pvt Ltd (BIPL)

b) Engineering College (REC-

Bhalki)

c) Karnataka College, Bidar


SPV members as also


However, evidence


regard to SPV member

ability to utilise at least

60% of installed capacity.

SIDBI has stipulated a

condition to get details of

utilization (Appraisal report

P-5)

Details may be sought

n. (b) Power requirement


(c) Water (d) Gas/Oil/ Other

utilities

250 KW



any

a. Implementation Agency Karnataka Council for Technological

Up gradation (KCTU), Bangalore (P-27)

b. Implementation Period 18 months from the date of final

sanction.

77



SIDBI has recommended that the

project is technically feasible and

financial viable and considered to be

support worthy


Division

Machineries of Rs. 257 lakh are of

production nature.



a. BEP 27.15%

b. IRR, payback period 24.27%

c. DSCR Not applicable


(ROCE)

33.56%

e. NPV Not available

f. Sensitivity Analysis

g. Working capital (In-principle sanction of loan from a bank, if

applicable arrangement made) (Appraisal

report P-18)

SIDBI has stipulated a condition to make

arrangement for working capital (Rs.

154.00 lakh)

6 Total Cost: The total cost of the CFC is as follows:

7 Means of Finance:

8 Plant and machinery

(Rs in lakh)

Particulars of plant and machinery No. Cost

01 Hydraulic Press 01 5.51

02 Double track Overhead Rails 04 18.37

Particulars Amount (Rs. in

lakh)

1 Land and site development 13.00

2 Building and civil works 171.00


4 Misc. fixed assets (furniture, fixtures, fire fighting equipment, first aid equipment, ETP, back up power)

(Appraisal report P-17)

46.00

5 Preliminary & Pre-operative exp. 15.00

6 Contingency 39.00



Particulars %age Amount(Rs. in lakh)


2. Grant-in-aid from Govt. of India 80 791.00

3. Grant-in-aid from Govt. of Karnataka 10 99.00

4 Bank Loan/ others 0.00

Total 989.00

78

03 Semi Automatic degreasing machine 02 3.68

04 Physical Inspection & measurement of test 1 set 2.30

05 Internal crack detector 01 40.25

06 FIP calibration machine 01 74.75

07 Atomizer/Nozzle testing m/c 02 2.30

08 Element lapping machine 03 1.86

09 Alternator testing m/c 02 5.69

10 Stator testing machine 02 3.10

11 Armature Growler equipment 05 2.87

12 Arc welding 4 1.15

13 MIG –175 Gas welding m/c 1 1.15

14 Spot welding m/c 2 2.30

15 Longitudinal welder 01 4.65

16 Tig Mig welding m/c 01 1.72

17 Fully automatic circular sawing m/c 01 3.68

18 Metal cutting band saw m/c 01 3.10

19 Heavy duty auto copying m/c 01 3.45

20 5 axis milling m/c 01 28.75

21 Tools crib & hand tools 1 Set 23.00

22 CNC Gear hobbing m/c 01 8.63

23 Profile copying m/c 01 2.30

24 Heavy duty cylinder boring m/c 01 24.15

25 Bore honing m/c 02 20.70

26 Line boring m/c for block 01 12.65

27 Radial drilling m/c 01 4.60

28 Gang drilling m/c 01 11.50

29 Connecting rod bush cutting m/c 02 4.14

30 Slew pressing 50 MT cap 4.60

31 Crank shaft grinders, overhead rail/crane 40” 02 46.00

32 Cam shaft grinders, bush boring m/c 01 4.60

33 Valve grinding m/c 01 3.45

34 Valve seat cutting m/c 01 2.30

35 Surface Grinding m/c 01 4.60

36 Minor pillar drilling 01 1.73

37 CNC Milling machine 01 23.00

38 CNC Gear cutting machine 01 3.63

39 CNC Keyway cutting machine 01 5.75

40 Minor tools Sump 5 to 14 mm 1.15

41 Foundry equpt crucibles mouldings LS 34.50

42 Drum skimming m/c 1 set 23.00

43 Spray painting with compressor, etc. 1 set 28.75

44 Washing ramp with hyd. Hoist and washing eqpt 1 17.25

45 Engine tuning wheel alignment testing m/cs 1 set 27.02

46 M/cs for odd jobs like moving of material/vehicles 1 Set 46.00

47 Tyre resoling and buffing m/c 1 set 39.10

48 Computers 25 8.63

49 Automated software CAD/CAM 20.00

50 Training & teaching aids LS 5.33

51 Effluent treatment plant 21.43

52 Rain harvesting plant 5.16

TOTAL 699.00

79

9 Shortcomings: i. Technical Division raised the issue that machineries Rs. 1.10 crore is of production nature

and [there] seems no requirement [of these machines] for CFC. Apart from this machines

worth Rs.147 lakh need clarification about their utilities in such a cluster engaged in

servicing of automobile industry. As per the MSE-CDP guidelines Hard Intervention

under the programme will consist of creation of tangible “assets” as Common Facility

Centres (CFCs) like common production / processing centre (for balancing / correcting/

improving production line that cannot be undertaken by individual units.

ii. SIDBI appraisal report stipulated a condition that SPV will submit certified copy of EM/documentary proof that atleast 50% units are micro to avail proposed 80% GoI grant.

iii. Title deed of land iv. SIDBI appraisal has stipulated a condition for utilization of 60% capacity of the CFC by

SPV members. v. Working capital for CFC.

10 Proposal for the Steering Committee: Cluster division recommends the proposal for




80

Agenda No. 30.78. Proposal for In-Principle approval for setting up of CFC for Textile

Cluster, Rabakavi – Banahatti, Bagalkot, Karnataka

Commerce & Industries Department, Govt. of Karnataka has sent a proposal seeking in-principle

approval and GoI assistance of Rs. 5.00 lakh for preparation of Detailed Project Report (DPR).

The Nodal agency for the project is Karnataka State Powerloom Development Corporation

Limited (KSPDC).


Textile Cluster

2. Location Rabakavi – Banahatti, Bagalkot District (Karnataka)

3. Products Yarn dyed cotton Sarees of different varieties

4. Age of the cluster About 5 decades old

5. No. of Units 51 dyeing units and 12000 power looms consisting of 3626

registered units

6. Type of units Micro, Small and Medium units

7. Existence of

Association / NGO


8. Recommendation in

the DSR

Diagnostic study has been prepared by IL& FS Limited.

Manufacturing units in cluster are facing constrains in

dyeing process of cotton yarn. The existing dyeing

techniques are highly health hazardous, stressful and time

consuming. Also there are no testing laboratory facilities

available for testing raw materials and colouring properties.

There is also no Effluent Treatment Plant in cluster.

9. Soft Interventions in

the cluster

State Govt. has informed that SPV in cluster would take

care of the soft interventions suggested in DSR.

10. Formation of SPV An SPV in the cluster has been formed by name ‘Sri

Kadasiddeshwara Textiles Private Limited’.

11. Employment Direct and indirect employment is about 40,000

12. Turnover / Export Rs 216 crore turnover

13. Implementing Agency Karnataka State Powerloom Development Corporation Ltd.

14. Problems of the cluster (i) The cluster is functioning in an un-organised manner

resulting in higher procurement costs. (ii) Manufacturing process of the yarn dyed cotton sarees

has remained mostly traditional. (iii) Dyeing process is very tedious & time consuming.

(iv) Manpower being the major problem in the cluster, the

output per day has reduced significantly.

(v) The existing yarn dyeing process is not capable to cater

the required standard quality product in the market.

(vi) There are not professional design and product

development centers and testing laboratories.

15. Need for CFC The existing technology used in the cluster for yarn dyeing

is traditional and outdated. The process starts with

bleaching, dyeing and drying which is done manually and

most of the units give it for job work to the dyers.

(ii) The existing dyeing process is not able to cater the

required standard quality product in the market. The shades

are not uniform and varies from batch to batch.

(iii) The existing techniques poses a big threat to the

environment as well as to the health of the workers as they

81

have continuously stand in front of the dyed liquor and dip

the hanks in the dye.

(iv) A laboratory is essential for testing of raw materials and

finished goods according to the industry standards.

(v) An Effluent Treatment Plant is required.


Particulars Amount

Rs in lakh

1. Land and Building 201.42

2. Common Infrastructure: water

supply, Effluent Collection &

Treatment System

163.94

3. Plant and Machinery

1406.40

4. Unit Regd./Professional &

Advisory Fees

44.29

5. Preliminary Expenses 35.44

6. Working Capital for year 1 30.29

7. Pre-operative expenses for

year 1

35.44

8. Interest during construction 54.36

1971.58

17. Proposed Means of

Finance Govt. of India - Rs. 1050.00 lakh

SPV contribution - Rs. 350.00 lakh

(Including contribution from KSPDC of Rs.100.00 lakh)

Loan from Bank - Rs. 571.58 lakh


18. Name of the agency

that will prepare the

DPR

IL & FS Ltd.




consider the proposal for In-Principle approval for setting up of CFC in Textile Cluster, Rabakavi

– Banahatti, Bagalkot and approve GoI grant of Rs. 5.00 lakh to KSPDC for preparation of DPR,

including SIDBI appraisal for the CFC subject to the condition that selection of agency for

preparation of DPR will be as per GFR.

82


Centre for Heat Treatment and Engineering Cluster, Hubli, Karnataka under MSE-CDP.

Commerce & Industries Department, Govt. of Karnataka has submitted a proposal for setting up

of CFC in Heat Treatment and Engineering Cluster, Hubli, Karnataka. Salient features of the



Heat Treatment and Engineering Cluster

2. Location Hubli-Dharwar District, Karnataka

3. Products Engineering Industrial products – Mainly

subcontracting- Machining, Fabrication, Fine

blanking, Plastic Injection moulded components,

Surface finishing parts & Components for Process

Industry Equipment, Auto components, Machine

tools, Agricultural implements, Components for

railways.

4. Age of the cluster Not available

5. No. of Units 100 micro units

6. Type of units Belongs to SC/ST


NGO

Sir M. Vishweshwarayya Heat Treatment & Engineering Cluster

8. Recommendation in the DSR DSR has been validated by SPV, Director, MSME-

DI, Hubli & Joint Director, DIC. In the DSR, it has

been recommended that there is a need of Soft intervention and Hard intervention.


cluster

Soft intervention has not been undertaken in the cluster.

10. Formation of SPV Yes, Sir M. Vishweshwarayya Heat Treatment & Engineering Cluster

11. Employment 3000 labours (Directlry & Indirectly)

12. Turnover Rs. 5000 lakh

13. Implementing Agency It is mentioned in the DPR that KCTU will be fund

receiving agency and there is no specific name of IA has been given in the DPR.

14. Problems of the cluster • Lack of promotional & technology development institutional support.

• Lack of marketing knowledge & visibility.

• Outdated Plant & Machinery or non availability

of modern production technologies.

• Poor usage of information & Communication technology.

15. Need for CFC There is a need for maintaining a high degree of precision & quality, which can be achieved only with

precision Sheet Metal Formation & Fabrication machinery, machine tools, precision jigs & fixtures,

constant cal liberation of tools & equipment and a

good heat treatment. For this, there is need of

establishing a Common Facility Centre, which will

bridge the technological gap and create the

infrastructure to facilitate every SME into

manufacturing quality and high precision products.

83



(Rs. in lakh)

1. Land 7.50

2. Building 30.00

3. Plant & Machinery (including

taxes, transportation & cost

escalation @ 15%)

397.877

4. Office Equipment 0.00

a) Telephone, Fax, Internet, Zerox 2.00

b) LCD projector, Lap top, Screen

etc.

1.50

c) PA and teaching aids 1.00

d) Computer systems with furniture 1.00

e) Office equp. & furniture 2.00

5. Others

a) Electrical from control panel to

MCC & other internals

5.00

b) Installation 3.00

c) Advances 2.00

d) Technical consultancy & DPR

fees

2.50

Total 455.377



in lakh)

1

.

SPV

contribution

10% 45.607

2

.

Grant-in-aid

from Govt. of

India

85% 387.00

3

.

Grant-in-aid

from Govt. of

Karnataka

5% 22.77

Total 455.377

Shortcomings:

• Return of Capital Employment (ROCE) is 9% against desirable of excess of 25% (page no.

28 of DPR).

• SIDBI appraisal has not been received.



Government within 6 months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for setting up of Common Facility Centre (CFC) to accord in-principle

approval.

84

85

Agenda No.30.81 Proposal for Infrastructure Development (ID) at Pathshala, Barpeta


j. Proposals received from Industries and Commerce Department,

Govt. of Assam

k. Location of site Bajali, Pathshala, District – Barpeta

l. Whether appraised DPR with approved layout plan received or not

Appraisal report received. DPR not received

m. Total Area of industrial estate/ area (acre) 100 Bighas- Non agricultural land. Area 1,33,780 Sqm. As per SIDBI’s report

possession certificate has been submitted by AIDC

n. Area to be developed (acre) 69,736 sqm.

o. Number and sizes of plots to be developed 76 plots of different sizes

p. Implementing Period 24 months

q. Other ID projects sanctioned in same


Nil

r. Performance of ID projects in state. 6 ID projects in the state have been completed and 5 are ongoing



any

Implementing Agency

(IA):

Assam Industrial Development

Corporation Ltd. (AIDC)

Track Record of the IA Earlier 7 projects have been sanctioned to

AIDC and out of these 5 are complete

Appraisal by SIDBI

(Observations and

recommendations).

Attach SIDBI report.

The improved infrastructure facilities in

the form of road, drainage, power, water

supply, administrative and services

complex etc., will have an overall impact

in the functioning of the MSMEs operating

in the estate. Besides, as the operations

grow in the estate, many suppliers to these

MSMEs shall also be benefited to feed

their increased requirements. This will

result in improvement in the overall socio

economic condition of large number of

people and society at large.

Whether sufficient

facilities available at site.

(Proximity to railway

stations / state highways,

availability of water supply, adequate power

supply, telecom facilities, dwelling places of

workers)

National Highway 31 runs from the town,

Railway station is Pathshala is 1 km from

the town, Market is nearby.

86

Whether land is in

possession in the name of

IA with Clear Title

As per SIDBI’s appraisal report land has

been allotted by Govt. of Assam and

possession certificate has been submitted

by AIDC

Whether Zoning

regulations and non-

agricultural conversion

etc complied with

Not Available

Whether State Level Committee to coordinate

and monitor progress has

been Constituted

Not Available

Whether confirmation received form IA that it

will meet the cost in excess of approved

project cost and any escalation in cost.

Not Available

Basis of elements of

project Cost

As per PWD and Govt of Assam rates.

However SIDBI in its appraisal report has

mentioned that Building Plan need to be

approved by competent authority

Tangible Outcomes of the

project

Employment generation

Increase in revenue in state exchequer

Justification of the

Proposal

There are important places in the district

like Sarthebari, Barpeta road which are

linked to artisan industries. The Industrial

estate may serve as a place for expansion

of units of the existing entrepreneurs.

3. Project Cost:

(Rs. Lakh)

Particulars Recommended

by SIDBI, as per

guidelines

v. Land filling/leveling including boundary wall and

fencing

100.00

vi. Laying roads 199.98

vii. Road side greenery & social forestry 7.10

viii. Water supply including overhead tanks, and pump

houses

70.98

ix. Drainage 52.48

x. Rain water harvesting 0.00

xi. Power distribution, Street light arrangements, etc. 208.01

xii. Others (sanitary conveniences) 0.00

xiii. Administrative and Other Services Complex 76.59

xiv. Effluent Treatment Facilities 0.00

xv. Contingencies & Pre operative expenses 14.30

xvi. Total 729.44


87

Particulars Amount (Rs in lakh)

iv. GoI Grant under MSE-CDP 584.00

v. State Government 145.44

vi. Others Nil

Total 729.44

5. Proposal for Steering Committee: Cluster division recommends the proposal for setting

up of Infrastructure Development centre Pathshala, District – Barpeta. Steering Committee may

consider the proposal.

88

Agenda No. 30.82 Soft Interventions in Bell Metal Cluster, Sarthebari Barpeta District, Assam

Proposal received from MSME-DI, Guwahati


Name of Cluster Bell Metal Cluster

Location Sarthebari, Barpeta, Assam

Products Artistic Bell Metal, Utensil, Decorative & Religious Items

Technological details, pollution

angle, etc.

The artisans use hand tools like Niyari (Anvil), Chalti, Sara (Tong), Kun (Hand operated lathe), Khonta (File), Hammer, etc for

manufacturing different articles from Bell Metal. No machine is used in manufacturing process.

Age of cluster Centuries old cluster.



All are micro

Turnover (p.a.) Rs. 7.00 crore

Export Nil

Employment

(direct / indirect)

1600 nos.

Presence of

association/NGO,

contact details

The Assam Cooperative Bell Metal Utensil Manufacturing Society

Ltd. Sarthebari Nagar Kohar Shilpi Sangstha

Whether DSR

conducted. Main

outcomes of DSR

Yes.

The DSR has recommends for soft & hard interventions in the

cluster. It has enough growth potential provided strategic

interventions are made in key problem areas.

Extent of

Competition

The cluster members face competition with Brass & Bell Metal

Cluster, Hajo.

Main Problems of

cluster

� Consumables- Charcoal, the main fuel for the industry is very

costly,

� Machinery, Production & Technology Up gradation- In absence

of mechanization the cluster, the productivity and the quality of the items produced in the cluster is low.

� Networking - Due to poor networking the artisans are not aware of the different developmental schemes which can benefit the

cluster. � Marketing- Even though there is an established cooperative

society in the cluster which has 11 show rooms across the state of Assam, about 50% of the products are sold through

Mahajans or middlemen resulting in exploitation of the artisans.

� Need for Training- In order to make the cluster vibrant and

capable of withstanding the present day competition, there

is an urgent need to improve the quality of

entrepreneurship in the cluster.

� Strengthening of Association- Even though an association of

the artisans by the name Sarthebari Nagar Kahar Silpi Sanstha

is formed at Sarthebari with about 1,600 artisans as members,

the same needs to be strengthened.

� Business Development Services- The cluster is in urgent need

of BDS Provider in the field of technology/quality up

89

gradation, product/design development, product diversification

and newer marketing avenues.


(Rs in lakh)


Interventions in the cluster at a total cost of Rs. 16.55 lakh for duration of 18 months with GoI

contribution of Rs. 14.61 lakh and the remaining Rs. 1.94 lakh to be contributed by cluster units /

association.

Proposed by Implementation Agency (IA) Comments, if

any


cluster development MSME-DI, Guwahati It has taken up

soft interventions

in other clusters.

Activities Proposed

(Technology / Quality

/ Marketing / Export /


Trust Building, awareness programme, Training

Programme, Exposure Visit to other Cluster,

Capacity Building, Participation in Sales cum-

Exhibition fare, Programme in Design, Marketing,

product diversification, packaging, Skill

Development, etc.

Whether DSR

validated by the

stakeholders

Yes on 13.12.11

Project Cost Project Cost : Rs. 16.55 lakh

GoI contribution : Rs. 14.61lakh Cluster beneficiaries: Rs. 1.94 lakh

Technical Agency to be associated & its

expertise

Department of Handicrafts O/o DC (Handicrafts), IIT, Guwahati, District Industries & Commerce

Center (DICC) Barpeta

Justification for


Units are poor artisans who manufacture utensils

with obsolete technology, face marketing problems due to quality of products, lack of

networking.

Main outcomes

(before & after) in terms of sales,

Exports, Investment, Profitability,

Employment, ISO & other Certification,

others

• Product and quality will be improved.

• Cluster products will have more acceptability

in the market

• Better networking among cluster actors and

tie up with Govt, department will result in easy flow of credit

• Increase in profit due to participation in trade fairs and exposure

90

Agenda No. 30.83 Setting up of CFC in Cashew Cluster, Neelachakra, Brahmagiri, Puri

MSME-DI, Cuttack has submitted the proposal for setting up of CFC in Cashew Cluster,

Neelachakra, Brahmagiri, Puri. Salient features of the cluster and the proposal are as follows:

1. Name of the cluster Cashew Cluster, Neelachakra, Brahmagiri

2. Location Brahmagiri, Puri

3. Products Cashew kernels Cashew Nut Shell liquid (CSNL)


5. No. of Units 26 (05 more are in pipeline)


7. Existence of

Association / NGO


8. Formation of SPV Yes, M/s Neelachakra Cashew Nut Cooperative Ltd.,

Balisahi, Brahmagiri, Puri

9. Employment 2848 nos. (Direct & Indirect)

10. Turnover / Export Rs. 8.05 crore

11. Implementing

Agency


12. Problems of the units Catering to domestic and nearby States market, poor

packaging, Low level of technology, unhygienic working conditions, low level of automation, No quality certification,

lack of standardization of processing methods, lack of infrastructure, lack of skilled manpower, lack of support from

financial institutions/banks, seasonal dependency and

pollution problems.



Report

Diagnostic Study is not received alongwith proposal.

14. Need for CFC Need of CFC established in DPR prepared by BRN

Consultant Pvt. Limited, Bhubaneswar

15. Cost of the project Particulars Amount (In

lakh)

1. Land & Land Development 24.35

2. Civil construction 501.38

3. Plant & Machineries 208.56

4. Electrification & Sanitation 34.51

5. Furniture & Fixture 6.79

6. Laboratory Equipments 7.25

7. Preliminary Expenses 5.20

Total 788.04

16 Means of finance (In

lakh)

Govt. of India - Rs. 550.00 lakh

SPV - Rs. 238.04 lakh


17 Facilities to be

created in the CFC

Cashew nut godown, CSNL godown, CSNL machine

laboratory, peeling, shelling centre, automatic cutting centre, administrative building, conference hall etc.

91

2. Shortcomings:

i. Validated Diagnostic Study

ii. SIDBI appraisal

iii. Number of units and turnover of cluster are very less.





92

Agenda No. 30.84 Proposal for setting up of CFC in Cashew Cluster, Ganjam, Odisha

Commissioner cum Director of Industries, Govt. of Odisha has submitted the proposal for

setting up of CFC in Cashew Cluster, Ganjam, Odisha. Salient features of the cluster and the


1. Name of the cluster Cashew Cluster

2. Location Sabulia, Rambha, Ganjam, Orissa

3. Products Cashew nuts



6. Type of units All micro

7. Existence of

Association / NGO


8. Formation of SPV Yes, M/s Sri Jagannath Cashew Cluster Pvt. Ltd.

9. Employment 5 lakh persons

10. Turnover / Export Rs. 120.00 crore

11. Implementing Agency Information not available

12. Problems of the units (i) Lack of brand image. (ii) Prevalence of obsolete

technology. (iii) Lack of storage facilities. (iv) Lack of

value added products. (v) Price is highly volatile. (vi) In

adequate flow of market information. (vii) Only 8-10 grades against possibility of 32 grades. (viii) Processing

in un-hygienic condition. (ix) No by-product processing centre. (x) Following old packaging system. (xi) Lower

capacity utilization. (xii) Lack of skill in steam roasting technology. (xiii) Lack of organic certification of farm

land. (xiv) Weak linkages between SMEs & institution. (xv) Untrained entrepreneur and un-skilled labour force.


DSR

DSR recommended the common facilities proposed.

14. Need for CFC DSR identified the need of Raw Material Bank with cold

storage facilities, packaging centre, by product processing

centre (CNSL & Husk), labour training cum production

centre and research and development centre.

15. Cost of the project (Rs. in lakh)

Particulars Amount


2. Building & other civil works 179.20


4. Furniture & Fixture & other

equipments

6.79

5. Preliminary & Pre-operative

expenses

10.75

6. Provision for contingencies 16.66

7. Margin for working capital 20.38

Total 727.60

16 Means of finance (In

lakh)

Govt. of India - Rs. 500.00 lakh

Govt. of Odisha - Rs. 145.52 lakh

SPV - Rs. 82.08 lakh

93


17 Facilities to be created

in the CFC

(i) Raw Material Bank.

(ii) Labour Training Centre cum production Centre.

(iii) Packaging Centre.

(iv) By product processing unit.

2. Shortcomings:

i. SIDBI appraisal

ii. Food Division of DC, MSME mentioned that activities like steam cooking and de shelling are proposed to be carried out at members individual units. In such a situation proposal of

installing facility of at par capacity of cluster units for steam cooking and de shelling (Raw

Cashew nut boiler and cooker of 600 kg per batch, 8 automatic deshelling machine line of

200 kg per hour, 2 cashew humidification unit of 1 MT per batch and cashew drying kiln

of 1.5 Mt capacity) in name of training centre may adversely affect business interest of

cluster units. Therefore, CFC should not install the above machine and may opt only

table modern machine for their training and research purpose etc. (Annexure – I).


months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for setting up of Common Facility Centre (CFC) to accord in-principle approval.

94

Agenda No. 30.85 Proposals for development of six clusters in Odisha

Director of Industries, Government of Odisha has submitted on 15.12.09, proposal for soft

interventions in 6 clusters viz. (a) Groundnut processing Cluster, Jajpur, (b) Rice Milling Cluster,

Rayagada, (c) Rice Milling Cluster, Koraput, (d) Cashew Cluster, Koraput, (e) Rice Milling

Cluster, Ganjam, & (f) Readymade Garment Cluster, Gobindpur (Cuttack). Action plan for soft

interventions was received on 20.04.11.

As decided by AS&DC(MSME), letter dated 13.5.2011 was sent to State Government of Odisha

that the proposals for Hard Interventions for the above clusters may be submitted first. Soft interventions activities and related activities can be covered under training programme of MSME-

DI, Cuttack or can be considered later on if necessary. Alternatively, the proposals for both hard and soft interventions can be considered together. No response has been received either from State

Government or from cluster actors.

Proposal for the Steering Committee: Cluster division recommends that extension of time for

submission of complete proposal for setting up of CFC by 30 June 12, failing which the case will

be closed.

95

Agenda No. 30.86 Soft Interventions in Artificial Jewellery Cluster, Meerut

1. Brief information of Cluster:

Need for CFC, if any Common Design Development Centre, Training facility, Dye

Cutting facility, Product Display center etc.

Any other information

Name of the Cluster Artificial Jewellery Cluster, Meerut

Location In and around Meerut like Neel Ki Gali, Sadar Bazar, Kankar Khera,

Holi Mohalla, etc.

Products Artificial Jewellery items like Payal, Ring, Bangles, Set etc.

Technological

details, pollution

angle, etc.

Technological levels in the cluster is obsolete, based on traditionally developed technology. It causes pollution. Units in cluster use second

hand and locally available dye cutting, electroplating machine.

Age of cluster About 50 years old

No. of Units 4488 Units (Micro units)

Profiles of units/

Category

Minority – 50%, SC/ST- 6%, General – 44%)

Turnover Rs 200 crore (per annum)

Export Rs 50 crore

Employment (direct

/ indirect)

About 1 lakh

Presence of

association/NGO,

Artificial Jewellery Cluster Vikas Samity, Meerut

Whether DSR

conducted. Main

outcomes of DSR

� Introduction of modern machinery � Developing Training Facilities in cutting, designing and

manufacturing � To establish Meerut Cluster as world class Jewellery Cluster

� Brand Building for cluster products

� Quality control

Extent of competition

for cluster

Cluster units face competition from machine made products

manufactured in China and Italy flooding the markets and sidelining

genuine products in terms of price.

Main Problems of

cluster

• The basic problem is of procuring material and selling for which

they have to depend on the traders.

• In the absence of the designing and material testing labs the

artisan-based units are unable to ensure quality product.

• Due to obsolete technology & old machinery used in cluster, the

quality is deteriorating & production is also affected.

• Wastage is high due to absence of technical training to artisans.

• No R&D and testing labs available in the cluster hence products

is loosing its image.

• There should be a separate section to improve marketing and

export training for cluster.

• Lack of knowledge on export documentations and procedure as

well as assistance of the consultant.

96


Justification for

undertaking Soft

Interventions

The cluster is Artisan based belonging to poor

and Minorities. It also consists of 65% women

artisans. Soft interventions will create avenues to

develop quality and product specialization. The

interventions will help the member units to

establish linkages with marketing agencies in

national and international markets,

Institutes/designers for evolving value added

products with latest designs and texture.

Proposal for Steering Committee: Steering Committee may approve the proposal for soft interventions in Artificial Jewellery Cluster, Meerut at a total cost of Rs. 13.69 lakh with GoI

contribution of Rs. 11.95 lakh and remaining Rs. 1.74 lakh to be contributed by cluster units/association.

Particulars As Per Proposal Comments by

Cluster Division


cluster development

DIC, Meerut. DIC is engaged in the development

of Industrial units in the district.

It should be UP

Handicrafts

Corporation Ltd.

Activities Proposed

(Technology / Quality

/ Marketing / Export

/ Quality/ Design,

etc.)

Programme on packaging, design development,

technology improvement, export management,

dyeing, product diversification, computer training, capacity building etc.

Whether DSR

validated by the

stakeholders

Yes.

Project Cost Project Cost : Rs 13.69 lakh

GoI contribution : Rs.11.95 lakh

Cluster beneficiaries Rs. 1.74 lakh

Technical Agency to

be associated & its

expertise

DC (Handicraft), NIESBUD, Master School of

Management, NIIT, Meerut, IIFT, New Delhi,

MSME-DI etc.

Main outcomes

(before & after) in

terms of sales,


Profitability,

Employment, ISO &

other Certification,

others

Particulars Pre-Intervention

(Present Status)

Post –

Intervention

(Projections) after

…….. years

Total Sales (Rs.) 200 crore 300 crore

Exports 50 crore 75 crore

Investment (Rs.) 30 crore 50 crore

ISO Certification of

Units

Nil 25%

Total Employment

(Direct- Indirect)

1,00,000 1,25,000

97


Centre for Stainless Steel, Brass & German Silver Utensils Cluster, Mirzapur

Special Secretary, Small Industries Department,. Government of UP has submitted a proposal for

approval for setting up of CFC in Stainless Steel, Brass & German Silver Utensils Cluster,

Mirzapur. Salient features of the cluster and the proposal are as follows:

1. Name of the cluster Stainless Steel, Brass & German Silver Utensils

Cluster

2. Location Mirzapur (UP)

3. Products Domestic utensils and decorative items

4. Age of the cluster Age of the cluster

5. No. of Units 300 nos

6. Type of units Micro (20% belong to SC category, 5% belong to Minority , 20% belong to


NGO

Mirzapur Metal Manufacturers Association, Mirzapur

8. Recommendation in the DSR The DSR recommends for setting of CFC in the cluster


cluster

Soft interventions in the cluster were earlier approved under MSE-CDP and taken up by MSME-DI,

Allahabad

10. Formation of SPV Mirzapur Metallurgy Ltd incorporated on 27.12.2007

11. Employment 2500

12. Turnover Rs. 140 crore

13. Implementing Agency Directorate of Industries & Commerce, Government

of UP

14. Problems of the cluster Use of old technology in melting of scrap, the

machining and finishing is done through manual

process, shortage of raw material, lack of training

facilities, lack of product diversification, poor quality

of finished products etc.

15. Need for CFC The Artisan in the cluster use scrap material for the

production which is untested and the same result in

more rejection during processing. The CFC proposed

includes facility for testing of raw materials,

induction melting furnace, Rolling machines power

press circle cutting facility etc. for improvement of

quality of products and acceptability with less

rejection.

98



(Rs.in lakh)


2. Building 258.50


4. Office Equipment 185.00

5 Preliminary & preoperative

expenses

15.00

6 Margin money for working capital 42.00

Total 1736.00



(Rs. in lakh)

1 SPV contribution 10% 136.00

2 Grant-in-aid from Govt.

of India

1350.00

3 Term Loan Bank 250.00

Total 1736.00

What are the shortcomings:

(i) Land documents related to procurement of land by the SPV not available.

(ii) Appraisal report SIDBI/ concerned bank not available. (iii) Project Specific account of SPV not available.



Government within 6 months, failing which the proposal shall be dropped. Steering Committee

may consider ‘In-principle’ approval for the CFC. in Stainless Steel, Brass & German Silver

Utensils Cluster, Mirzapur

99


Centre for Carpet & Durri Industry Cluster, Shahjahanpur under MSE-CDP.

Special Secretary, Small Industries Department, Government of UP has submitted a proposal for

approval for setting up of CFC in Carpet & Durri Industry Cluster, Shahjahanpur. Salient

features of the cluster and the proposal are as follows:

1. Name of the cluster Carpet & Durri Industry Cluster

2. Location Shahjahanpur (UP)

3. Products Carpets and durri of different sizes and quality

4. Age of the cluster Age of the cluster

5. No. of Units 4,137 (Registered units are 137 nos)

6. Type of units Traditional Household Industry,

90% are from Minorities

7. Existence of

Association / NGO

Samajik Gramin Vikas Sansthan, Barujai

8. Recommendation

in the DSR

The DSR recommends for setting of CFC in the cluster

9. Soft Interventions

in the cluster

Soft interventions in the cluster were earlier approved under

MSE-CDP and taken up by DIC, Shajahanpur

10. Formation of SPV Samajik Gramin Vikas Sansthan, Barujai

11. Employment 25000 nos (Direct & Indirect)

12. Turnover Rs. 70 crore

13. Implementing AgencyDirectorate of Industries & Commerce, Government of UP

14. Problems of the clusterLack of training facilities Lack of modern Dyeing facilities

Lack of finishing facilities Lack of carpet backing for Tufted carpets

Lack of Brand Image and linkages with supporting institutions

15. Need for CFC • To establish

• Skill Upgradation & Training Centre

• Modern Dye House

• Modern Washing House

• Raw Material bank.

16. Cost of the project Particulars Total Cost (Rs.in

lakh)


2. Building 41.70


4. Preoperative expenses 25.00

5. Margin money for working

capital

20.00

Total 430.00

100

17. Proposed Means of

Finance

Particulars Amount

(Rs. in lakh)

1 SPV contribution 67.00

2 Grant-in-aid from Govt. of India 275.00

3 Term Loan Bank 88.00

Total 430.00



(ii) Appraisal report SIDBI not available. (iii) Project Specific account of SPV not available.

(iv) Memorandum & Article of Association/By laws not available.




may consider ‘In-principle’ approval for the CFC in Carpet & Durri Industry Cluster,

Shahjahanpur.

101

Agenda No.30.89 Proposal for In-Principle approval for setting up of Common Facility

Centre for Wollen Duree Cluster, Jaunpur under MSE-CDP.


approval for setting up of CFC in Wollen Duree Cluster Mariyahu, Jaunpur. Salient features of the


1. Name of the cluster Wollen Duree Cluster

2. Location Mariyahu, Jaunpur (UP)

3. Products Wollen duree, rugs, wall hanging, floor covering, etc

4. Age of the cluster 200 years old.

5. No. of Units 400 micro and 500 processing units

6. Type of units (Minorities – 300, SC – 40, Women – 40 and Others

– 20)


NGO

Wooni Udhyog Sahkari Samity Ltd., Jaunpur

8. Recommendation in the DSR


cluster

Soft interventions in the cluster were earlier approved under MSE-CDP and taken up by Govt. of UP

10. Formation of SPV Mariyahu Audyogik Avam Samajik Sewa Samitee

11. Employment 15,000 nos.


Export Rs. 10.0 Crore (2005-06)

13. Implementing Agency Directorate of Industries, Govt. of UP

14. Problems of the cluster (as per

DSR)

Non availability of modern dyeing facilities, poor infrastructure, unhygienic working condition, poor

finishing and polishing of finished material, etc.

15. Need for CFC The CFC is required to over come the problems faced

by artisans /units which will improve:

• Brand image of Mariyahau Woolen Durees.

• Enhancing quality of durees.

• Updating the Duree industry with latest technical skills.

• Updating the Duree industry with modern management and quality tools.

• Encouraging industry to adopt international

quality and social.

102


Particulars Amount in lakh

1. Land 45.00

2. Building 155.00



5 Pre-operative Exp. 7.00

6 Working capital 29.30

Total 583.33



(Rs. in lakh)

1 SPV contribution 14.13 82.45

2 State Govt. 21.86 127.50

3 Grant-in-aid from Govt. of India

64.01 373.38

Total 100 583.33


(i) Land documents related to procurement of land by the SPV not available. (ii) List of SPV members along with their contribution not available.

(iii) Appraisal report from SIDBI not available. (iii) Project Specific account of SPV not available.


proposal for In-Principle approval for setting up of CFC in Wollen Duree Cluster Mariyahu,

Jaunpur.

103


Centre for Textile Printing Cluster, Pilakhua, Ghaziabad, UP under MSE-CDP.


approval for setting up of CFC in Textile Printing Cluster, Pilakhua. Salient features of the cluster


1. Name of the cluster Textile Printing Cluster

2. Location Pilakhua (Ghaziabad)

3. Products Traditional artesian or Traditional Industries or

Modern/high tech product.

4. Age of the cluster 100 years old.


6. Type of units Micro units.


NGO

Pilakhua Power loom Manufacturing & Weaving Association.

8. Recommendation in the DSR The DSR recommends for setting of CFC in the

cluster.


cluster

Soft interventions in the cluster were earlier approved

under MSE-CDP and taken up by NIESBUD, Noida.

10. Formation of SPV Textile Printing Cluster Vikas Samiti.

11. Employment 20,000 nos. (Direct & Indirect)

12. Turnover Rs. 200 crore in processing & printing job work and total fabric cost is Rs. 700 crore.

13. Implementing Agency Directorate of Industries & Commerce, Government of UP

14. Problems of the cluster • Designing capacity of artisans is very poor.

• The products are sold in local market due to lack of acceptability.

• Screen design exposing unit is obsolete.

• Obsolete method of bleaching and washing.

• Methods of value addition to the printed

fabric are missing in the cluster.

15. Need for CFC • The CFC will have finishing unit, designing

development centre, production centre,

testing centre and marketing assistance cell

which will help the artisans/cluster units to

get quality products and testing of raw

material as well as finished goods including

modern processing facilities.

104



(Rs.in lakh)


2. Building



4. Preliminary & Preoperative

expenses

65.00

5 Contingency 20.00

6. Margin money for working capital 64.00

Total 661.50



(Rs. in lakh)



of India

52.14 347.50

3 Govt. of UP 30.00 198.50

Total 100 661.50



(ii) Appraisal report SIDBI not available. (iii) Project Specific account of SPV not available.

(iv) Memorandum & Article of Association/By laws not available.


proposal for In-Principle approval for setting up of CFC in Textile Printing Cluster, Pilakhua.

105

Agenda No.30.91: Proposal for In-Principle approval for setting up of Common Facility

Centre for Brassware Cluster, Moradabad

Special Secretary, Small Industries Department, Government of UP has submitted proposal for

approval of CFC in Brassware Cluster, Moradabad, UP. Salient features of the cluster and the


1. Name of the cluster Brass & Aluminum Ingot Making Cluster

2. Location Moradabad

3. Products The products basket of Moradabad is mix of utility

products and decorative items. The major categories

include Candle Stand, Planters, Lamps, Tableware,

Kitchenware, Cutlery Sets, Bathroom accessories,

Wall fixture, trays, nautical items etc.

4. Age of the cluster About 350 years old.

5. No. of Units 25,000 nos.

6. Type of units (Small – 5,000 and Micro – 20,000)


NGO

Moradabad Metal Recyclers Society

8. Recommendation in the DSR DSR recommends for setting up of CFC.


cluster

Soft interventions in the cluster have been taken up earlier by NIESBUD, Noida.

10. Formation of SPV Moradabad Metal Recyclers Society

11. Employment 3,50,000 nos.



13. Implementing Agency UP Handicrafts Development Corporation


DSR) • Lack of appropriate technology in melting the

scraps to convert into ingot which is the raw

material for art ware castings activities.

• Inability to remove the impurities from the raw material.

• Inability to meet large quantity export orders due to poor and obsolete technology based

casting facilities.

• High cost production.

• Value addition in the products is not of global level from point of view of its export oriented

products.

15. Need for CFC Main objective of CFC will be augment the need

of cluster actors to enable them to reduce the cost

of production, reduce the consumption of fuel,

reduce the pollution, and increase the quality of

product to compete both in domestic and

international markets.

106


Particulars Amount in

lakh


2. Factory building 200.00

3. Plant and machinery (including

installation, electrification &

commissioning)

675.00


5 Preliminary & Pre-operative

Exp.

40.00


6 Margin Money Working capital 7.50

Total 1065.00


Particulars % Amount

(Rs. in lakh)

1 SPV contribution 10 107.00

2 State Govt. 20 213.00


70 745.00

Total 100 1065.00

Shortcomings:

• Land documents

• List of SPV members along with their contribution

• Appraisal report from SIDBI

• Project Specific account of SPV

Other information: Government of UP has submitted another DPR also for same purpose and for same cluster but from different SPV with changes only in the project cost and financial ratios and

all other details remaining exactly the same. In addition, it has been informed by NIESBUD, Noida that SIDBI is questioning for setting of two identical CFCs in the same cluster. Cluster

Division has requested for geographical area of the proposed two CFCs to be used by cluster members from NIEBUD, Noida. Reply still not received.

Proposal for Steering Committee:- Steering Committee may like to deliberate on the issue for

taking final decision.

107

Agenda No. 30.92: Proposal for In-Principle approval for setting up of Common Facility Centre

for Brassware Cluster, Moradabad

Special Secretary, Small Industries Department, Government of UP has submitted proposal for

approval of CFC in Brassware Cluster, Moradabad, UP. Salient features of the cluster and the


1. Name of the cluster Brassware Cluster

2. Location Moradabad

3. Products The products basket of Moradabad is mix of utility

products and decorative items. The major categories

include Candle Stand, Planters, Lamps, Tableware,

Kitchenware, Cutlery Sets, Bathroom accessories,

Wall fixture, trays, nautical items etc.


5. No. of Units 25,000 nos.

6. Type of units (Small – 5,000 and Micro – 20,000)


NGO

Moradabad Scrap Recycling Limited.



cluster

Soft interventions in the cluster have been taken up earlier by NIESBUD, Noida.

10. Formation of SPV Moradabad Scrap Recycling Limited.






DSR) • Lack of appropriate technology in melting the

scraps to convert into ingot which is the raw

material for art ware castings activities.

• Inability to remove the impurities from the raw material.

• Inability to meet large quantity export orders due to poor and obsolete technology based casting

facilities.

• High cost production.

• Value addition in the products is not of global level from point of view of its export oriented

products.

15. Need for CFC Main objective of CFC will be augment the need of

cluster actors to enable them to reduce the cost of

production, reduce the consumption of fuel, reduce

the pollution, and increase the quality of product to

compete both in domestic and international markets.

108



lakh


2. Factory building 20.00

3. Plant and machinery (including

installation, electrification &

commissioning)

675.00



Exp.

40.00


6 Margin Money Working capital 7.50

Total 840.00



lakh)

1 SPV contribution 10 84.00

2 State Govt. 20 168.00


of India

70 588.00

Total 100 840.00

Shortcomings:

• Land documents




Other information: Government of UP has submitted another DPR also for same purpose and for

same cluster but from different SPV with changes only in the project cost and financial ratios and

all other details remaining exactly the same. In addition, it has been informed by NIESBUD,

Noida that SIDBI is questioning for setting of two identical CFCs in the same cluster. Cluster Division has requested for geographical area of the proposed two CFCs to be used by cluster

members from NIEBUD, Noida. Reply still not received.

Proposal for Steering Committee:- Steering Committee may like to deliberate on the issue for taking final decision.

109


Centre in Brassware Cluster, Moradabad

Industries Department, Govt. of Uttar Pradesh has submitted a proposal for setting up of CFC in

Brassware Cluster, Moradabad (U. P). Salient features of the cluster and the proposal are as

follows:


Brassware Cluster

2. Location Moradabad (U. P)

3. Products Kitchenware, candle stand, planters, lamps,

tableware, cutlery sets etc.


5. No. of Units 25000 Micro & Small units

6. Type of units SC-250; Minorities-18750; Women-1000


NGO

Moradabad Tools Training Centre, Moradabad

8. Recommendation in the DSR Lack of machineries and technology in drilling,

milling, molding and making brass products

technically. The cost of production is very high and

production is based on manual basis and it takes too

much time.


cluster

Soft interventions in the cluster have been taken up

earlier by NIESBUD, Noida.

10. Formation of SPV Moradabad Tools and Training Centre

11. Employment 350000 (Directly & Indirectly)

12. Turnover Rs. 2700 crore (export- Rs. 2200 crore)


14. Problems of the cluster • Lack of promotional & technology development institutional support.

• Indian artisans are not able to make products as per international standards

• Lack of marketing knowledge & visibility.

• Outdated Plant & Machinery or non availability of modern production technologies.

• Poor usage of information & Communication technology.

15. Need for CFC The CFC Machine tool centre shall serve as the main platform for up gradation the knowledge/technology

exploring of new ideas, development of production processes, product development etc.

3D scanners and CAD software is helpful in utilize

modern manufacturing on parts.

Grinding Machine is very useful for the quality

products in handicrafts industry and can be useful.

110



(Rs. in lakh)


2. Building 160.73



5. Preliminary expenses 30.00

6 Pre-operative 30.00


8 Margin Money for WC 145.16

Total 1492.67



lakh)


2. Grant-in-aid from

Govt. of India

63 933.57

3. Grant-in-aid from

Govt. of Uttar Pradesh

10 163.95

4. Quasi loan (for WC)

10 145.15

Total 100 1492.67

Shortcomings:

• Land documents



• The SPV formed in the cluster is an Association of Person. In respect of all the cluster

proposals, the SPV formed is either Pvt Ltd. comapay, Society or Trust.




may consider the proposal of in-principle approval for setting up of CFC in the cluster.

111

Agenda No. 30.94: Proposal for In-Principle approval for setting up of Common Facility Centre

for Chikankari Cluster, Barabanki, UP


approval for setting up of CFC in Chikankari Cluster, Barabanki,. Salient features of the cluster


1. Name of the cluster Chikankari Cluster

2. Location Block Dewa, Dist Barabanki.

3. Products Ladies suits, Gents Kurta, Dress Material, Ladies

Tops, Furnishing Items.

4. Age of the cluster Age old cluster.

5. No. of Units Not available.

6. Type of units Not available.


NGO

Barabanki Chikankari Cluster Vikas Evam Kriyanvayan Samiti.

8. Recommendation in the DSR The main recommendations are that the artisans

should be organized, Design and product

development interventions should be initiated in the cluster and a Common Facility Center should be

established in the cluster.


cluster

Skill Upgradation of Artisans.

Design & Product Development Workshops.

10. Formation of SPV Barabanki Chikankari Cluster Vikas Evam

Kriyanvayan Samiti under Society Registration Act.

11. Employment 10,000 nos.



14. Problems of the cluster • Highly unorganized Cluster.

• All artisans are job worker.

• Lack of backward & forward linkage.

15. Need for CFC The CFC will be having

• Cutting, Stitching, Interlock and Kaaj & Button machine.

• Washing & Dry Cleaning Machine.

• Design Center.

• Information Center.

• Raw Material Bank.

• Apparel Manufacturing and Training Center.



(Rs.in lakh)

1. Land 7.16

2. Building 34.90

3. Equipment and machinery 35.92

4. Computerization 4.35

5. Managerial subsidy for 3 years 10.44

Total 92.77

112



(Rs. in lakh)



of India

70.02 104.67

3 Govt. of UP 14.99 22.42

Total 100 149.51

Shortcomings:

• Land documents

• Appraisal report SIDBI


• Memorandum & Article of Association/By laws

• List of members along with their contribution

Proposal for Steering Committee:- Cluster division recommends the proposal for ‘In-principle’

approval so that complete proposal is submitted by the State Government within 6 months, failing

which the proposal shall be dropped. Steering Committee may consider the proposal of in-

principle approval for setting up of CFC in the Cluster.

113

Agenda No. 30.95 : Proposal for In-Principle approval for setting up of Common Facility

Centre for Fan Cluster, Varanasi

Special Secretary, Small Industries Department, Government of UP has submitted a proposal for

approval for setting up of CFC in Fan Cluster, Varanasi, UP. Salient features of the cluster and the


1. Name of the cluster Fan Cluster

2. Location Varanasi

3. Products Ceiling fan, Table fan, Pedestal fan, Pumps, Spare

parts of fans and pumps.



6. Type of units Micro and Small units.


NGO

Vranasi Fan Cluster Private Limited, Varanasi



cluster

Soft interventions in the cluster have taken up by

DIC, Varanasi.

10. Formation of SPV Vranasi Fan Cluster Private Limited, Varanasi on 8.04.2010



Export 10% (out of total turnover)



DSR) • Old technology for die casting.

• Old technology for painting.

• Manually making mesh guards.

• Non-availability of raw material.

• Lack of testing facilities.

15. Need for CFC • Facilities of Testing and certification of

products

• Technology up gradation.

• Skill up gradation.

• New technology for painting aluminum

rolling.



lakh


2. Building & Civil Works 120.00

3. Machinery & Equipments 335.00



Exp.

5.00

6. Consultancy Fees 15.00

6 Margin Money Working capital

60.00

Total 740.00

114



(Rs. in lakh)


2 State Govt. 20.27 150.00


67.57 500.00

Total 100 740.00


• Land documents



• Memorandum of Articles of association

• Financial analysis, project deliverables

Proposal for Steering Committee:- Cluster division recommends the proposal for ‘In-principle’

approval so that complete proposal is submitted by the State Government within 6 months, failing

which the proposal shall be dropped. Steering Committee may consider the proposal of in-

principle approval for setting up of CFC in the Cluster.