2nd & 3rd june 2017, ni-msme, hyderabad · o/o dc (msme)to advice sidbi not to appraise dprs...

National Workshop for Cluster Development Officers

Under

Micro and Small Enterprises Cluster Development Program

on

2nd & 3rd June 2017, NI-MSME, Hyderabad

National Workshop of Cluster Development Officers (CDOs) Page | 1

Contents

Session1: Inaugural Session.........................................................................................................1

Session 2: CDOs – Roles and Responsibilities............................................................................3

SESSION – 3: Stages in implementation of CFCs & ID Projects- Checklist and Formats...... 5

SESSION – 4: Format for preparation of DPR for quick appraisal by SIDBI..........................6

Session-5: Functioning of New MSE-CDP Portal......................................................................7

Session-6: Group Exercise: Best Practices and Challenges.......................................................8

Session-7: Presentation by CDOs to AS & DC...........................................................................9

Session-8: Cluster Competitiveness through Social Capital....................................................11

Session-9: GST Impacts: NI MSME..........................................................................................12

Session-10: Concluding Session..................................................................................................13

Annexure A: List of Participants...............................................................................................15

Annexure B: Presnetation on CDOs-Roles & Responsibilities...............................................17

Annexure C: Presentation on Stages in implementation of CFC&ID Projects - Checklist &

Formats.........................................................................................................................................21

Annexure D: Presentation on Format for preparation of DPR Appraisal by SIDBI...........47

Annexure E: Functioning of New MSE-CDP Portal...............................................................54

Annexure F: Presentation of CDOs to AS&DC (MSME)........................................................75

Annexure G: Cluster Competitiveness through Social Capital...............................................88

Annexure H: Presentation on GST Impacts by NI-MSME.....................................................96

Annexure I: Concluding Session..............................................................................................109


Session1: Inaugural Session

A National workshop of Cluster Development Officers (CDO) under Micro and Small Enterprises

Cluster Development Programme (MSE-CDP) has been organised on 2nd

& 3rd

June 2017 at NI-

MSME, Hyderabad, which has been inaugurated in the gracious presence of Shri M. Chandrasekhar

Reddy its Director General.

The 1st day proceedings of the workshop were

coordinated by Shri C.S.S.Rao, Deputy Director,

with team of officers from Office of

DC(MSME), who outlined the agenda and

objectives of the workshop. He mentioned that it

is for the first time in several years that all

CDOs from MSME-DIs across the country have

come together on a common platform to

brainstorm over various issues related to cluster

development based on their experience. He

requested all CDOs for their active participation

in all the sessions of the workshop.

Shri M. Chandrasekhar Reddy welcomed the

CDOs from all MSME-DIs to NI-MSME,

Hyderabad. He expressed his happiness over the

fact that Government of India is putting a lot of

thrust on cluster development as an approach to

enhance competitiveness of the MSME sector.

Highlighting the significance of a CDO, he

elaborated upon the transformational journey

from a Cluster Development Agent to Cluster

Development Officer and how this role has

become much more relevant currently. He also

emphasised the importance of ‘Owning a

Cluster’ and urged the CDOs to raise the cluster

as their own child.

Subsequently, a round of introduction followed wherein each participant was also requested to also

share their expectations from the workshop. The participants were thankful to DC (MSME) for

organizing this workshop focused on CDOs. They expressed that they look forward to getting

solutions to many of the challenges they encounter in their respective states while implementing

MSE-CDP.


Session 2: CDOs – Roles and Responsibilities

Objective:

To bring clarity about the Roles & Responsibilities of CDOs in respect of Cluster Development

activities are concerned. The session was included considering the fact that some of the officers

have recently been appointed as CDOs and through this session they will get more clarity about

their Roles and Responsibilities. During the session, CDOs who have extensive experience of

working in clusters also shared their learnings and how to perform work diligently with other

CDOs. The session was coordinated by Shri C.S.S.Rao and other officers from Office of DC

(MSME).

Key discussion points:

The session was started with

brief discussion about the

objectives of MSE-CDP. Apart

from the scheme objectives,

scope, components and

monetary assistance available

under the scheme for setting up

of CFCs and setting up of

new/up-gradation of existing

Industrial Estates was discussed

with CDOs.

CDOs were explained as how they can play the role of catalyst in promotion of clusters by

regularly interacting with stakeholders such as nodal agencies, primary stakeholders (SPVs,

MSEs, Implementing Agencies, Industry Associations, etc.), secondary stakeholders (Financial

Institutions, Technical Institutions, etc. and regulatory agencies (State Pollution Control Board,

etc.).

The session was further focussed on three key responsibilities of CDOs, which include:

Spread - As-is status of ongoing and

completed CFCs was presented before the

CDOs. CDOs were encouraged to take pro-

active steps and ensure completion of

ongoing CFCs and identify new potential

clusters where new CFCs can come up.

Co-ordinate - CDOs were advised to co-

ordinate with stakeholders on regular basis

for timely completion of projects and to

identify potential clusters for new projects

Monitor, Evaluate and Report - Discussions

were held on the roles and responsibilities of

CDOs with respect to potential projects,

ongoing projects and completed projects.


Takeaways from the session:

Understanding of Roles & Responsibilities, thereby enabling CDOs to perform their day-to-day

activities effectively.

Understanding of CDOs to undertake frequent visits to ongoing/completed CFCs/ID Projects to

enable maintain database, timely completion of projects.

Understanding of the importance of coordination, thereby improving better relations with

stakeholders (State Government/IAs/SPVs/MSEs, etc.).

Spreading the awareness about various schemes of O/o DC MSME through MSE-CDP.


Session 3: Stages in implementation of CFCs & ID Projects - Checklist and Formats

Objective:

The session focussed on bringing clarity among the CDOs by laying down the steps in

implementation of CFCs and ID projects under the flagship scheme MSE-CDP, the session was

coordinated by Shri C.S.S.Rao and other officers from Office of DC (MSME).


The major points of discussions are as under:

Implementation procedure / steps of CFC

and ID Projects under MSE-CDP among

CDOs for bringing clarity.

Implementation procedure for CFC

projects (50 steps) and ID projects (35

steps) developed with inputs from all

stakeholders was shared with the

participants along with brief description

of each step.

CDOs apprised with steps of

implementation procedure along with

examples from various cases.

Doubts of CDOs with respect to

monitoring mechanism, signing

authority for DPR, timelines and joint

verification authority composition were

discussed and clarified.


Clear understanding of the procedure

enables CDOs to create awareness

among all stakeholders (State

Governments, Cluster Units, SPV

members, Service Providers,

Implementing Agencies) about the

implementation of CFCs/ID Projects.

Understanding of stages will enable CDOs to provide handholding support and better co-

ordination among stakeholders.


Session 4: Format for preparation of DPR for quick appraisal by SIDBI Objective:

Familiarisation of CDOs about the appraisal process of DPRs and requirements thereof, as per

format of appraisal by SIDBI.


The session started with discussion on

absence of a model format for

preparation of Detailed Project Report

in respect of CFC and ID Projects.

It was pointed out that some of the

DPRs being received are not as per

DPR format / components required.

The absence of SIDBI contact points in

case of clarifications and delay in

appraisals was also discussed.

It was also highlighted by SIDBI that

the DPR under MSE-CDP vary from

State to State and lack of uniformity of

proposals.

Varying format results in appraisal

delays from SIDBI as number of

mandatory requirements are either not

fulfilled or necessary clarifications are

not provided by the respective stakeholder in time.


CDOs were presented with DPR format in detail and SIDBI to share contact details of

concerned officers.

Final formats to be shared by SIDBI with O/o DC (MSME) shortly, subsequently it will be

shared with all CDOs.

O/o DC (MSME)to advice SIDBI not to appraise DPRs without in-principal approval for the

same.

CDOs can now guide IAs / SPVs on actual requirement of information / documents and format

of DPR.

Time taken for SIDBI appraisal of DPRs to come down after incorporation of suggestions made

by SIDBI with streamlined DPR format.


Session-5: Functioning of New MSE-CDP Portal

Objective:

To give a walk-through and understanding of new MSE-CDP portal to the CDOs, which has been

developed for Cluster Division of Office of DC (MSME). The session was monitored by Shri

Charanjeet Bedi and other officers from Office of DC (MSME).


The session was started with the

introduction of new MSE-CDP portal

to CDOs.

CDOs were informed about the

importance of portal in monitoring of

projects and expected benefits from it

to the stakeholders.

Step by step explanation regarding

feeding of data into the portal by

CDOs for both CFC and ID projects.

Actual case studies filled data of

Projects was discussed with CDOs so

as to familiarise them about the

formats / screens in which data is to be

uploaded by them.


Understanding of importance of data

feeding on MSE-CDP portal.

Enabling CDOs to guide SPVs, in

respect of ongoing projects on MSE-

CDP portal.

Enabling CDOs to spread awareness

about the importance of MSE-CDP

portal and its functioning to the

stakeholders and also in monitoring and

evaluating the real time progress of

respective ID/CFC projects.

MSE-CDP portal will enable the

stakeholders about crucial information /

data / documents online for all the

CFCs / ID projects.


Session-6: Group Exercise: Best Practices and Challenges

Objective:

To obtain best practices and challenges & ways to

overcome the challenges in implementing Projects

under MSE-CDP, out of the experience of CDOs.

The session designed to identify best practices

being adopted by different states and challenges

which have been faced by CDOs at various stages

for implementation of project, so that best

practices can be replicated in other States and

overcome the challenges. CDOs in to 4 groups

deliberated in detail at the end of the session each

group made a presentation as per the topic (best

practices / challenges) assigned to them and also

presented the same to AS&DC (MSME).


All the CDOs discussed the best practices

being adopted by Clusters in their respective

States, challenges faced by them during the

course of implementation and the ways to to

overcome the same.

CDOs agreed and disagreed on various issues

and have come up with certain suggestions to

mitigate the challenges.


The session helped in identifying the best

practices which other CDOs can adopt and

implement in their States.

CDOs were made aware of different types of

challenges which they can face in field while

executing the projects.


Session-7: Presentation by CDOs to AS&DC (MSME)

Day one witnessed intense discussions among

CDOs (divided in to four groups) on best

practices and challenges faced while

implementing Projects under MSE-CDP in each

state. Subsequently, the groups made

presentations on the discussed best practices and

challenges.

Day two of the workshop started with CDOs

presenting on the best practices and challenges,

the session was graced by AS&DC (MSME).

Group A and B presented on the best practices

and Group C and D on the challenges.


AS&DC (MSME) witnessed all the four presentations and gave invaluable suggestions to the

CDOs on varied issues. He appreciated the best practices highlighted by the CDOs. Discussions

that followed focused on identifying solutions to various challenges faced by CDOs in cluster

development. The Roles and Responsibilities of a CDO were stressed upon by the DC (MSME),

who motivated each one of them to be proactive and be cluster mentors.


The following action points emerged from the discussions during the workshop:

CDOs should own the clusters and do the

mentorship. They must develop a sense of

attachment with the cluster. CDOs have to

groom the clusters and show them the way

forward. For this, they should be in direct

touch with MSMEs.

Each CDO should identify and aim to

develop 100 clusters by leveraging various

schemes of GoI and State Government.

This could be done in collaboration with the

DIC offices located in each district and

target should be to identify about 3-4

clusters in each district. The list of such

identified clusters must be shared with

Office of DC (MSME).


Post identification of clusters, a quick DSR should be made on each cluster. DSR should be like

a matrix highlighting the challenges and the solutions. Subsequently, the CDOs should

handhold units to avail benefits under various schemes.

The role of state governments in developing clusters was emphasised. The CDOs highlighted

the challenge of lack of effective coordination with the state implementing agencies due to non-

availability of nodal persons in State Government. It was decided that States should nominate a

Nodal Officer for cluster development. A request in this regard will be issued by Office of DC

(MSME) to all State Governments.

A mechanism to Incentivise IAs for implementing CFCs shall be devised by Office of DC

(MSME). It was felt that absence of incentive to IA is one of the reasons for delays in

implementation of Projects.

Creation of bridge fund by States for extending grants to SPVs before release of GoI grant was

discussed. States like Haryana have such mechanism which has benefitted the SPVs.

Database of all machineries purchased under MSE-CDP shall be prepared by Office of DC

(MSME) and displayed on the website for benefit of stakeholders.

CDOs should develop a compendium of schemes highlighting both Central and State

Government schemes which could be shared with MSMEs across clusters of all States.

MSME-DIs should call periodic meetings of all DIC GMs to appraise them on various Central

Government schemes.

The major objective of MSE-CDP is to enhance competitiveness of MSEs attached to the CFC.

The purpose of MSE-CDP is to promote enterprise based clusters, and in case of artisan based

clusters, could be considered under SFURTI scheme of Ministry of MSME.

Proposals to set up plug and play facilities

in clusters will be welcome under the MSE-

CDP scheme.

Discussing on the challenges in operating a

CFC, AS&DC highlighted that SPVs only

should be responsible for running the CFCs

and Government is a facilitator.

It was discussed that there is an urgent need

to train SPVs on efficiently running the

CFCs. Trainings in this regard needs to be

organized at NI-MSME. These trainings

may be supported by Office of DC

(MSME).


Session-8: Cluster Competitiveness through Social Capital

Shri R. K. Rai, Director (CD), Office of DC (MSME)

made a presentation highlighting the importance of

social capital for larger gains to MSMEs. He quoted

various examples of clusters, wherein, MSMEs have

benefitted immensely just by cooperating with each

other.


Outlining of social capital and benefits for a

cluster beyond MSE-CDP.

Opportunities out of proactive collaboration

among cluster units and how to enhance social

capital.

Importance of association / cooperation among MSMEs for greater benefits.


Understanding the concept of Social Capital from the numerous examples provided of clusters

like Faridabad, Tirupur, etc. who have benefited due to the presence of proactive industry

associations. Joint efforts in the form of social capital can result in reduction of raw materials

costs by common procurement, joint marketing efforts can be undertaken.

Understanding about social capital with example such as SPV in Mohali bargained with a

technology provider and brought down equipment cost by 40% only because 10 units came

together to adopt the technology.

Trust building is the essence of social capital formation and the CDOs must work towards this

in each cluster.

Exposure visits to clusters that have leveraged well on their social capital must be organised to

motivate the upcoming clusters. For example, visit of SPV members of plywood cluster

Yamunanagar can benefit by visiting CFC in plywood cluster in Kerala.


Session-9: GST Impacts: NI MSME

Objective:

To enable CDOs about the concept and impact of GST and how GST is being levied on different

goods & services. The session was conducted by NI-MSME.

Key Discussion Points:

Salient features of GST was discussed with CDOs

Case studies were provided on tax liability of various dealers so as to provide better

understanding to CDOs

GST implications on MSME were discussed with CDOs

Benefits of GST was discussed with CDOs

Key takeaways:

Basic understanding of GST and its impacts of GST and can advise MSMEs/SPVs about the

pros and cons of GST

CDOs can pass on the learnings of how GST will benefit the industry to Industry Associations,

SPVs etc.


Session-10: Concluding Session

During the session a presentation was made by Dr. Sanjay Pal, Sr. Faculty of EDII, Ahmedabad

about the findings of the MSE-CDP evaluation study conducted by them to Secretary, MSME and

AS&DC (MSME).


The physical status of MSE-CDP Projects across the country in terms of number of sanctioned

projects, state wise status of projects and the grant released under the scheme for various

projects across states.

The observations made over the evaluation study were also discussed in front of participants

and inputs with respect to same were exchanged for arriving on a common platform of

observations and suggestions.

The suggestions based on evaluation study were elaborated and the suggestions of MSME

officials were also discussed with examples from on-going projects and best practices.

The CDOs of 4 Groups gave presentations on best practices and challenges & the ways to

overcome the challenges.

Directions of Secretary, MSME:

While appreciating the topics covered and efforts put in by the officers during the workshop,

Secretary, MSME has given the following directions for better implementation of MSE-CDP.

Develop database of the clusters vetted by the stakeholders across the country

Bridge the gap between Ministry of MSME and stakeholders i.e. State Governments,

Implementing Agencies, Industry Associations, SPVs, MSMEs etc


Ensure time bound implementation of the projects

Ensure online feeding of information on MSE-CDP portal in order to assess impact and develop

database of the projects

Ensure submission of at least one CFC proposal from their respective states

Ensure submission of proposals after field verification

Identify cluster and extend handholding support to SPVs in various states from

conceptualization to operationalization

Spread and implementation of MSME schemes in clusters under respective jurisdiction.

2nd & 3rd june 2017, ni-msme, hyderabad · o/o dc (msme)to advice sidbi not to appraise dprs...

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