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By Speed PostOFFICE OF THE DEVELOPMENT COMMISSIONER

(MICRO, SMALL & MEDIUM ENTERPRISES)

MINISTRY OF MICRO, SMALL & MEDIUM ENTERPRISES

GOVERNMENT OF INDIA

Nirman Bhawan, 7th Floor, Maulana Azad Road,

New Delhi - 110 10811151115:MICRO, SMALL & MEDIUM ENTERPRISES~~ ~ ~ ""fUl"""f "3U"f

Ph.EPABX - 23063800,23063802,23063803 FAX - (91-11) 23062315,23061726,23061068, e-mail- dcmsmehq@nb.nic.in

No. 15(35)/CDD/36th SCMl2014 Dated: 24thFebruary 2014

OFFICE MEMORANDUM

Subject: Minutes of 36th meeting of Steering Committee of MSE-CDP held on 18.02.2014at Udyog Bhawan, New Delhi.

A copy of minutes of 36th meeting of Steering Committee of Micro & Small Enterprises-Cluster Development Programme (MSE-CDP) held on 18.02.2014 at Udyog Bhawan, New Delhi isenclosed for information and necessary action as per decisions taken in the meeting at the earliest.

(S.R.S~Joint Development Commissioner (CD)

Ph. No. 011-23061726Fax no. -011-23061430

Encl. as above

To:-

I. Members of the Steering Committee (As per list)2. Commissioner IDirector Industries of State Government (As per list)3. Director, MSME-OI (As per list)

Copy to:-

1. PSO to Secretary, MSME2. PS to AS&DC, MSME

.'

MINUTES OF THE 36th MEETING OF STEERING COMMITTEE OF MICRO AND SMALLENTERPRISES - CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP) HELD ON18.02.2014.

36th Meeting of the Steering Committee of Micro and Small Enterprises- ClusterDevelopment Programme (MSE-CDP) was held under the Chairmanship of Shri MadhavLal, Secretary (MSME) on 18.02.2014 at 3.00 PM in Committee Room No.47, UdyogBhawan, New Delhi. Secretary (MSME) welcomed all the members. List of participants isat Annexure-I.

The following decisions were taken:

Andhra Pradesh

Agenda No. 36.1: Proposal for in-principle approval to set up Common FacilityCentre in Steel Product Fabrication Cluster, Guntur District, Andhra Pradesh.

Secretary (MSME) desired to know the facilities proposed in the cluster. In reply, the SPVmember stated that the main facilities proposed are Heat treatment, Testing, Processing ofraw material and Tool Room. Secretary (MSME) then wanted to know that whether anyTool Room exist in the region. In reply, the SPV member stated that no Tool Room's existeven in the adjourning areas.

Decision: After detailed discussion, Steering Committee approved the proposal for in-principle approval for setting up of Common Facility Centre in Steel Product FabricationCluster, Guntur District, Andhra Pradesh.

Agenda No. 36.2 (i) to (iii): Proposal for conducting Diagnostic Studies (DS) in 03clusters by Andhra Pradesh Trade Promotion Corporation Ltd. (APTPC)

(Rs. in lakh)S. Agenda Name of the Cluster Cost of Gol approvedNo. No. conducting DS1. 36.2 (i) Auto and Engineering 2.50 2.50*

Components Cluster,Tadipatri, Ananthpur

2. 36.2 (ii) Granite Processing Cluster, 2.50 2.50*Bauvpet village, Karimnagar

3. 36.2 (iii) Hand Block Printing & Kalamkari 2.50 2.50*Cluster, Pedana, Krishna district --

Total 7.50 7.50* Subject to actual

In Hand Block Printing & Kalamkari Cluster, Pedana, Krishna district, Secretary (MSME)desired to know that whether any assistance was received from DC (Handicraft). In reply,Implementing Agency (IA) clarified that no Gol assistance had been made by DC(Handicraft) for the said proposal.

Decision: After detailed discussion, Steering Committee approved the above 03proposals for conducting diagnostic studies at a project cost of Rs. 2.50 lakh each withwith 100% Gol grant.

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Goa

Agenda No. 36.3 Proposal for conducting Diagnostic Study in Gold JewellaryCluster, Mapusa, North Goa, Goa by MSME-DI, Goa.

Decision: Steering Committee approved the proposal for conducting Diagnostic Studyin Gold Jewellery Cluster, Mapusa, North Goa by MSME-OI, Goa, at a cost of Rs.1.00 lakhwith 100 % Gol grant or subject to actual.

Jharkhand

Agenda No. 36.4: Proposal for conducting Diagnostic Study Report (DSR) inBamboo made Handicrafts Products Cluster, Saraikela Kharsawan, Jharkhand byMSME-DI, Ranchi.

Decision: Steering Committee approved the proposal for conducting diagnostic study inBamboo made Handicrafts Products Cluster, Saraikela Kharsawan, Jharkhand by MSME-01, Ranchi at a total project cost of Rs. 1.00 lakh with 100% Gol grant.

Karnataka

Agenda No. 36.5: Proposal for conducting Diagnostic Study Report (DSR) inWooden Furniture Cluster, Mundargi, Gadag, Karnataka by KCTU, Bangalore.

Decision: After detailed discussion, Steering Committee approved the proposal forconducting diagnostic study in Wooden Furniture Cluster, Mundargi, Gadag, Karnataka ata total project cost of Rs. 2.20 lakh with 100% Gol grant.

Agenda No. 36.6: Proposal for in-principle approval to set up new industrial estateat Challakere, Chitradurga District, Karnataka.

The officials from State Govt. / Implementing Agency present in the meeting were not ableto give satisfactory reply in response to the quarries raised in the Steering Committeemeeting.

Decision: Steering Committee deferred the proposal.

Agenda No. 36.7: Proposal for in-principle approval to set up new industrial estateat Kudumalakunte, Gowribidanur Taluk, Chikkaballapur, Karnataka.

The officials from State Govt. / Implementing Agency present in the meeting were not ableto give satisfactory reply in response to the quarries raised in the Steering Committeemeeting.

Decision: Steering Committee deferred the proposal.

Agenda No. 36.4 (5): Proposal for in-principle approval to set up Common FacilityCentre at Packaging Cluster, Mysore, Karnataka.

Decision: After detailed discussion, Steering Committee approved the proposal for in-principle after excluding the two facilities namely (i) manufacture of Kraft Paper (basicraw material) and (ii) manufacture 00.5;3 ply corrugated board in any form or aspect,

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whereas the other facilities proposed are feasible and may be considered after revising theproposal.

Agenda No. 36.5 (5): Proposal for approval for inclusion of Laser Sorting Machineand Cold Storage Component in Raisin Processing Cluster, Bijapur, Karnataka.

Decision: After detail discussion, Steering Committee approved the proposal forinclusion of Cold Storage Component and Laser Sorting Machine in Raisin ProcessingCluster, Bijapur, Karnataka which was approved in-principally in the ss" SCM held on15.01.2014.

Kerala

Agenda No. 36.8: Extension of duration of project for setting up of CFC in WoodProcessing Cluster, Kollam.

Representative from KBIP, Thiruvananthapuram requested for extension of durationof project for one year i.e. up to 20.01.2015. Secretary (MSME) noted that considerableprogress has been made in the CFC and building has also been completed as well as e-tendering of the plant and machinery. Secretary (MSME) suggested for extension ofduration up to 30.06.2014. Representative of KBIP agreed subject to conditions for timelyrelease of funds from the office of the DC (MSME).

Decision: The Steering Committee granted extension of duration up to 30.06.2014 with acondition that office of DC (MSME) will release the funds as per the requirement made byKBIP so that project can be completed by 30.06.2014.

Agenda No. 36.9: Proposal for in-principle approval for up-gradation of IndustrialEstate at Poovanthuruthu, Kottayam, Kerala.

Secretary (MSME) desired to know the type of industries that exist in the region. In reply, therepresentative from State Govt. /Implementing Agency stated most of the units are engagedin rubber products, making batteries etc.

Decision: Steering Committee granted in-principle approval for up-gradation ofIndustrial Estate at Poovanthuruthu, Kottayam.

Maharashtra

Agenda No.36.10: Proposal for in-principle approval for setting up Common FacilityCentre (CFC) in Cotton Fabric Cluster, Hatkanangle, Kohlapur, Maharashtra.

Secretary (MSME) desired to know the facilities proposed in the cluster. In reply,Dy. Director (Cluster), Office of the Directorate of Industries, Government of Maharashtrastated that the main facilities proposed are Common Yarn Dyeing, R& D centre, TestingLab and Training Centre.

Director, MSME-DI, Mumbai stated that after getting the dyeing facility, the exportfigure of the cluster beneficiaries is likely to go up.

Decision: The Steering Committee approved the proposal for in-principle approval for~~~~;a~~tr~~ Common Facility Centre ~n Fabric Cluster, Hatkanangle, Kohlapur,

3 I PM g e S.R. SAMUELJoe

Mizoram

Agenda No. 36.11: Proposal for conducting Diagnostic Study in Silk Textile Cluster,Lengte, Mamit District, Mizoram.

Decision: Steering Committee approved the proposal for conducting diagnostic study inthe cluster by Bamboo Development Agency, Aizawal, Govt. of Mizoram at a total cost ofRs.2.50 lakh to be made available as Gol contribution.

Nagaland

Agenda No. 36.12(i)-36.12 (iii): Proposal for conducting Diagnostic Studies in threeclusters in Nagaland.

(Rs. in lakh)S. No. Agenda Name of the Cluster Cost of Gol

No. conducting DSR approved(i) 36.12 (i) Cane and Bamboo cluster, 2.30 2.30

Chen, Mon District, Nagaland(ii) 36.12 (ii) Cane and Bamboo cluster, 2.40 2.40

Nchangram, Peren District(iii) 36.12 (iii) Handicrafts Cluster, 2.50 2.50

Shamator, Tuensang DistrictTOTAL 7.20 7.20

Decision: Steering Committee approved the above three proposals for conductingDiagnostic Studies with 100% Gol grant as stated above in the table.

Agenda No. 36.3(5) Proposal for in-principle approval of Industrial Estate atNoksosang, Longleng District.

Decision: Steering Committee granted in-principle approval for Industrial Estate atNoksosang, Longleng District subject to fulfilment of the following conditions:

(i) The land belongs to SPV as mentioned in the forwarding letter dated 7.02.2014from Commissioner and Secretary, Government of Nagaland. As per guidelines,land should be in the name of Implementing Agency of the State Government.

(ii) The DPR mentions that there are 160 operating units; therefore, the proposalappears to be for upgradation of industrial estate. However, it is not clearlymentioned in the proposal. This needs clarification.

(iii) Online application has not been submitted on website and proposal need to beforwarded by concerned MSME-OI, Imphal.

(iv) Implementing Agency for the project is not clear.

Tamilnadu

Agenda No.36.13: Proposal for final approval for setting up of Common FacilityCentre (CFC) in S.S. Utensils Cluster, Kumbakonam, Thanjavur, Tamilnadu.

The proposal was discussed in detail. Secretary (MSME) desired to know the kind ofactivities under taken by the members. In reply, SPV/ State Govt. stated that all are microunits and the main activities are bending, pressing, welding etc. for making the S.S.

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Utensils. Further, Secretary (MSME) suggested for diversification and make use ofdifferent kind of coatings to have appealing appearance.

Project Cost:-(Rs. in lakh)

S. No. Particulars Cost

1 Land and its Development 0.00*

2 Building and other Civil Constructions 16.00

3 Plant & Machinery(including electrification) 106.95

4 Preliminary & Pre-operative expenses, maximum 2% of project cost 2.00

5 Margin money for Working Capital 1.35

Total Project Cost 126.30

* Land acquired for 20 years on lease basis.

Means of Finance:-(Rs. in lakh)

S. No. Particulars Percentage (%) Amount

1 SPV contribution 15.50 19.57

2 Grant-in-aid from Govt. of India 78.25 98.83

3 Grant-in-aid from Govt. of Tamilnadu 6.25 7.90

Total 100.00 126.30

Decision:- After discussion, Steering Committee approved the proposal for finalapproval for setting up of Common Facility Centre (CFC) in S.S. Utensils Cluster,Kumbakonam, Thanjavur, Tamilnadu at total project cost of Rs.126.30 lakh with Golassistance of Rs. 98.83 lakh, Govt. of Tamilnadu contribution of RS.7.90 lakh and SPVcontribution of Rs.19.57 lakh.

Tripura.

Agenda No. 36.14: Proposal for setting up of New Industrial Estate at 8elonia, Dist.South Tripura, Tripura.

Special Secretary and MD, TIDC Ltd. informed to the committee about the newindustrial estate to be set up and requested for final approval as all conditions in respect ofthe project under reference have been complied with from their side. Committee was ofthe view that as per the guidelines two stage approval is required.

Decision: Steering Committee granted in-principle approval for setting up of NewIndustrial Estate at Belonia, South Tripura District, Tripura. Further, final approval would beaccorded on file.

Uttar Pradesh

Agenda No. 36.15: Proposal for setting up of soft interventions in ReadymadeGarment Cluster, GIDA Gorakhpur, Uttar Pradesh

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Chairman Steering Committee desired to know the activities that will be taken up aswell as the Institute with which tie-up has been made. AS&DC(MSME) suggested for tyingup with NIFT, Rai Bareily as they have ample experience in conducting various trainingprogramme as well as design development. This would result in value addition.Commissioner of Industries, Government of Uttar Pradesh agreed to involve NIFT, RaiBareily in conducting some of the activities in the cluster.

Decision: Steering Committee approved the proposal for conducting Soft Interventionsin the cluster to be taken up by UPTPA, Kanpur for duration of 18 months at a total cost ofRS.11.40 lakh with Gol contribution of RS.10.25 lakh and remaining RS.1.15 lakh to becontributed by cluster units/association.

Agenda No. 36.16: Proposal for soft interventions in Brass Ware Cluster KhalilabadSant Kabir Nagar, Uttar Pradesh.

The representative from the cluster explained the problems of the cluster and informed thecommittee that they want to adopt the similar process and technology which is being usedin Brassware Cluster, Moradabad. AS&DC (MSME) suggested for tying up with theHandicrafts & Handloom Exports Corporation of India Ltd. (HHEC) for implementation ofsome of the activities in the cluster. This would result in getting good export orders.

Decision: Steering Committee approved the proposal for Soft Interventions in thecluster to be taken up by UPTPA, Kanpur for duration of 18 months at a total cost ofRS.14.21 lakh with Gol contribution of Rs.11.35 lakh and remaining Rs.2.86 lakh to becontributed by cluster units/association.

Agenda No. 36.17: Proposal for final approval for upgradation of Industrial Estate atNunhai, Agra, Uttar Pradesh.

Project cost

S.N Particulars Approved Cost

1. Land development and other overheads infrastructure

(i) Cost of Boundary wall/fencing 35.92

(ii) Cost of Laying roads - internals roads 418.24

(iii) Road side greenery & social forestry 8.54

(iv) Drainage 167.69

(v) Power (Street light arrangements, etc.) 40.38

2. Administrative office building (conference cum 50.07multipurpose hall, canteen, toilet, guest room, park etc.)

3. Effluent Treatment Facilities 0.00

4. Contingencies 2% & Pre operative expenses 14.42

Total cost 735.26

(Rs in lakh)

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Means of Finance:(Rs. in lakh'

Particulars Percentage Approved Contribution

Gol Grant under MSE-CDP: 80%* 588.21

Government of UP 20% 147.05

Total 100.00 735.26

* More than 50% Units are micro.

Commissioner of Industries, Government of Uttar Pradesh informed to the Committee thatin-principle approval for the project has recently been granted in the earlier SteeringCommittee held on 27.12.13 and requested for final approval as per the guidelines.

Decision: Steering Committee granted final approval for upgradation of IndustrialEstate at Nunhai, Agra. The project will be implemented by Uttar Pradesh Rajkiya NirmanNigam Ltd., (UPRNNL). They will submit land documents for confirmation of possession aswell as commitment that they will meet the cost in excess of approved cost and anyescalation in cost of project.

Agenda No. 36.18: Proposal for final approval for upgradation of Industrial Estate atSikhohabad, Firozabad, Uttar Pradesh.

Project Cost(Rs in lakh)

S.N. Particulars Approved Cost

1. Land develo~ment and other overheads infrastructure

(i) Boundary wall/fencing 46.23

(ii) Laying roads - internals roads 109.25

(iii) Road side greenery & social forestry 3.96

(iv) Drainage 58.75

(v) Power (Street light arrangements, etc. ) 22.12

2. Administrative office building (conference cum multipurpose hall, 50.07canteen, toilet, guest room, park etc.)

3. Effluent Treatment Facilities 0.00

4. Contingencies 2% & Pre operative expenses 5.81

Total cost 296.19

Means of Finance:(Rs. in lakh)

Particulars Percentage (%) Approved Contribution

Gol Grant under MSE-CDP: 80.00* 236.95

Government of UP 20.00 59.24

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ITotal 100.00 296.19

* More than 50% units are micro.

Commissioner of Industries, Government of Uttar Pradesh informed to the Committee thatin-principle approval for the project has recently been granted in the earlier SteeringCommittee held on 27.12.13 and requested for final approval as per the guidelines.

Decision: Steering Committee granted final approval for up gradation of IndustrialEstate at Sikhohabad, Firozabad. The project will be implemented by Uttar PradeshRajkiya Nirman Nigam Ltd., (UPRNNL). They will submit land documents for confirmationof possession as well as commitment that they will meet the cost in excess of approvedcost and any escalation in cost of project.

Agenda No. 36.19: Proposal for final approval for upgradation of Industrial Estate atPartapur, Meerut, Uttar Pradesh.

Project Cost(Rs. in lakh)

S.N. Particulars Approved Cost

1. Land development and other overheads infrastructure

(i) Laying roads - internals roads 331.15

(ii) Water supply (Pump house and tube well) 36.08

(iii) Drainage 238.10

(iv) Power (Street light arrangements, etc. ) 19.89

2. Administrative office building (conference cum multi 84.64purpose hall, canteen, toilet, guest room, park etc.)

3. Effluent Treatment Facilities 0.00

4. Contingencies 2% & Pre operative expenses 14.20

Total cost 724.06

Means of Finance:

Particulars Percentage (%) Approved Contribution

Gol Grant under MSE-CDP 80.00* 579.25

Government of UP 20.00 144.81

Total 100.00 724.06

(Rs in lakh)

* More than 50% Units are micro.

Commissioner of Industries, Government of Uttar Pradesh informed to the Committee thatin-principle approval for the project has recently been granted in the earlier SteeringCommittee held on 27.12.13 and requested for final approval as per the guidelines.

Decision: Steering Committee granted final approval for upgradation of IndustrialEstate at Partapur, Meerut. The project will be implemented by Uttar Pradesh Rajkiya

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Nirman Nigam Ltd., (UPRNNL). They will submit land documents for confirmation ofpossession as well as commitment that they will meet the cost in excess of approved costand any escalation in cost of project.

Manipur

Agenda No. 36.1 (S): Proposal for in-principle approval to set up new industrialestate at Nongmaiching, Imphal East District.

Decision: Steering Committee granted in-principle approval to set up new industrialestate at Nongmaiching, Imphal East District.

Agenda No. 36.2{S): Proposal for in-principle approval to set up new industrialestate at Tamenglong.

Decision: Steering Committee granted in-principle approval to set up new industrialestate at Noney, Tamenglong District.

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Annexure I

List of participants in 36th Meeting of Steering Committee MSE-CDP held on 18.02.2014.

S. Name & Designation OfficeNo. S/Shri

1. Madhav Lal, Secretary (MSME) In chair2. Amarendra Sinha, AS&DC (MSME) Ministry ofMSME3. S.N. Tripathi, Joint Secretary M/o MSME4. S.R. Samuel, Joint Development 010 DC(MSME)

Commissioner5. Devaki Nandan, Under Secretary IF Wing, Ministry ofMSME6. Surendra Srivastava, DGM SIOBI, New Delhi--7. L. Venkateshwarlu, Comm issioner & Govt. ofU.P.

Director of Industries,8. Praveen Agarwal, Director Directorate of Industries & Comm., Govt. of

Tripura9. L.H. Thangi Mannen, Commissioner & Deptt. of Industries & Commerce, Govt. of

Secretary Nagaland10. S.R. Londhe, Deputy Director of Indus. Directorate of Industries, Govt. of Maharashtra11. D. Chandra Sekhar, Director MSME-DI, Hubli12. R.B. Gupte, Director MSME-DI, Mumbai13. R. Mahesh, Dy. Director MSME-DI, Chennai14. Shivanand Bachagundi, Asst. Director MSME-D1, Goa15. Shashi Singh, Joint Director of Industries Govt.ofU.P.16. S.G. Hiwale, Industries Officer Directorate of Industries, Govt. of Maharashtra17. Birendra Kumar, GM DIC, Agra, U.P.18. Pawan Agarwal, GM DIC, Meerut, U.P.19. 1. Anne Mary Swarna, GM TANSIOCO, Chennai20. K. Nagarajan, Manager (Schemes) TANSIOCO, Chennai21. Bijendra, Staff Officer UPRNN, Delhi Zone, Delhi22. Kuldeep Singh, AD (Hosy.) 010 DC(MSME)23. A.K. Ojha, AD (Food) 0/0 DC(MSME)24. K. Venu Madhav, GM Andhra Pradesh Trade Promotion Corporation

(APTPC) Ltd.25. Chandrashekhar. D., Deputy Director KCTU, Bangalore26. B.S. Nagesh, Asst. Exc. Engineer KSSIOC, Bangalore27. B. Jagadeed, Superintending Engineer KSSIOC, Bangalore28. S. Santosh, GM Kerala Bureau and Industrial Promotion (K-BIP)29. K.A. Felix, Consultant Kerala Bureau and Industrial Promotion (K-BIP)30. R. Vasudevan, Consultant Kumbakonam Stainless Steel Utensil Cluster31. S. Sundaram, Consultant Kumbakonam Stainless Steel Utensil Cluster32. Jani Basha Shaik Steel Fabrication Cluster, Guntur, A.P.33. Shivajee Singh, Secretary Brass ware Cluster, Bakhira, Distt. Sant Kabir

Nagar, U.P.34. A.K. Shrivasatava, Director Readymade Garment Cluster, Gorakhpur35. R.A. Siddiequi Readymade Garment Cluster36. A.K. Agarwal Readymade Garment Cluster37. S. Rahmat Readymade Garment Cluster38. Vijaydatta P. Lotliker Kala Avishkar Gold Jewellery Cluster,39. Rajiv D. Patil, Chairman Sangli Turmeric Cluster Pvt. Ltd.40. Nitin S. Desai, Chairman Cotton Fabric Cluster41. Jitendra Chauhan, MD Cotton Fabric Cluster

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