ministry ofmicro, smallandmedium enterprises - … agenda 08_03_2013- 5_10pm.pdf · 32.8 soft...

GOVERNMENT OF INDIAMinistry of Micro, Small and Medium Enterprises

Office of Development Commissioner (MSME),th Floor, A Wing,

Nirman Bhawan, Maulana Azad Road,New Delhi-l 10108

AGENDA

for

32nd STEERING COMMITTEE MEETING

of

Micro & Small Enterprises -Cluster Development Program (MSE-CDP)

DATE m" March, 2013

TIME 10.30 A.M.

VENUE 7th Floor, Committee Room,0/0 DC (MSME),Nirman Bhavan,New Delhi

Index

Agenda DescriptionKarnataka32.1 DSR in 9 clusters 1-21

i) Desiccated Coconut Powder,Madihalli, Tiptur, Tumkurii) Silk Garment Products, Kudur, Ramanagariii) Automobiles Servicing Cluster, Auto Nagar, Mysoreiv) Engineering Cluster, Mysore Indl. Area, Mysorev) Printing Cluster, Koorgalli Indl area, Mysorevi) Wool Cluster, Hosdurga, Chitradurgavii) Wool Cluster, Chekkere, Chitradurgaviii) Puffed Rice Processing Cluster, Harappanahalli, Davanagerix) Jewellery Cluster, Gandhi Bazar, Shimoga

32.2 Soft intervention in Food Processing Cluster, Chikmagalore. 22-2732.3 Soft intervention in General Engineering and Agricultural Equipment 28-33

Manufacturing Cluster, Mandya.32.4 Soft intervention In Embroidery and Readymade Garment Cluster, 34-40

Doddamudahalli village, Chamrajnagar District.32.5 Soft intervention in Printing Cluster, Tumkur. 41-46Madhya Pradesh32.6 DSR for Rice Milling Cluster, Tehsil Dabra, District Gwalior. 47-48Manipur32.7 Soft intervention in Handloom Cluster, Churachandpur. 49-5232.8 Soft Interventions in Handloom Weaving Cluster, Yumnam Huidrom 53-56

Makha Leikai, Imphal West32.9 Soft Interventions In Silk weaving Cluster, Utlou Makha Leikai, 57-60

Bishnupur District32.10 Soft Interventions in Handloom Weaving Cluster, Langthabai Lep, Imphal 61-64

West32.11 Proposal for In-principle approval for up-gradation of 10 centre at 65-66

Taykelpet Industrial Estate.West Bengal32.12 Proposal for In-principle approval of setting up Common Facility Centre 67-74

in Red Brick Cluster, Barabani, Burdwan.32.13 Proposal for In- principle approval of setting up Common Facility Centre 75-83

in Plastic Products Cluster, Rajganl, Jalj)aiguri.32.14 Extension of time limit for 10 centre at Udyan Industrial Estate, Kolkata. 84-8532.15 Extension of duration of project for setting up of CFC in Re-rolling Mill 86-87

Cluster, Howrah.Uttar Pradesh32.16 Soft intervention in Foundry Cluster, Agra. 88-9232.17 Soft intervention in Patch Work Cluster, Rampur 9332.18 Soft intervention in Pharrna Cluster, Kanpur 94-9632.19 DSR for Leather Footwear Cluster, Saharanpur District. 97-9932.20 DSR for Fortified Wheat Flour Cluster, Aligarh. 100-101

Agenda DescriptionTamilnadu32.21 Proposal for final approval to Up-grade Infrastructure facilities at 102-105

Malumichampatti District Coimbatore.32.22 Proposal for In-principle approval of setting up Common Facility Centre 106-112

in Gate and Grill Cluster, Thiruvallur.32.23 Proposal for In-principle approval of setting up Common Facility Centre 113-120

in Gold Jewellary Cluster, Madurai.32.24 Proposal for In-principle approval of setting up Common Facility Centre 121-127

in Powerloom Cluster, Salem.32.25 Proposal for In-principle approval of setting up Common Facility Centre 128-134

In Readymade Garments (Women) Cluster, Dhalavaipuram,Virudhunagar.

32.26 Proposal for In-principle approval of setting up Common Facility Centre 135-142in Engineering Cluster, Ambattur.

Tripura

32.27 Soft intervention in Bamboo Craft Cluster, Shankhala, West Tripura 143-147

Punjab32.28 DSR for Steel Re-rolling Mills Cluster, Ludhiana. 148Haryana32.29 DSR in 4 clusters 149-156

i) Textile Machinery Cluster Panipat.ii) Fitness & Surgical Equipments Cluster, Bhiwani.iii) Plastic Multi Product Cluster, Bhiwani.iv) Scientific Instruments Cluster, Ambala.

32.30 Proposal for In-principle approval of setting up Common Facility Centre 157-164in Agriculture Implements Cluster, Kamal.

32.31 Proposal for In-principle approval of setting up Common Facility Centre 165-172in Pharmaceuticals Cluster, Kamal.

32.32 Proposal for In-principle approval of setting up Common Facility Centre 173-182in Readymade Garment Cluster, Village Mohammadpur, Gurgaon.

32.33 Proposal for In-principle approval of setting up Common Facility Centre 183-190in Stainless Steel Cluster, Kundli, Sonepat.

Kerala32.34 Soft intervention in General Engineering Cluster, Thalassery. 191-19432.35 Proposal for In-principle approval of setting up Common Facility Centre 195-201

in Wooden Furniture, Mandankavu , Kozhikode, Kerala.32.36 Approval of revised list of Plant and Machinery for setting up of CFC in 202

Ethnic Food Cluster, Pala, Kottayam.Odisha32.37 DSR in 2 clusters 203-205

i) Rice and Rice Bran Cluster, Balasore.ii) Dry Fish Cluster, Paradeep.

Assam32.38 Soft intervention in Bamboo Cluster, Darrang. 206-21032.39 Proposal for In-principle approval for setting up of 10 centre at Moran, 211-213

District Dibrugarh.

Agenda DescriptionAndhra Pradesh32.40 Proposal for In-principle approval of setting up Common Facility Centre 214-220

in Fan Cluster, Hyderabad.32.41 Proposal for In-principle approval of setting up Common Facility Centre 221-234

in Gold Ornaments Cluster, Vijayawada.32.42 Proposal for final approval to Up-grade Infrastructure facilities at JRD 235-238

Industrial Estate, Kanuru, Vijayawada, Krishna District.Jharkhand32.43 DSR in 2 clusters 239-242

i) Blacksmith Products Manufacturing Cluster, Barki Lari, District,Ramgarh.

ii) Food Processing Cluster, Ormanjhi, RanchiGujarat32.44 Proposal for In-principle approval of setting up Common Facility Centre 243-251

in Pump and Foundry Cluster, Rajkot.Maharashtra32.45 Soft intervention in Turmeric Cluster, Sangli. 252-257

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Agenda No. 32.1 (i): Proposal for conducting Diagnostic Study Report (DSR) of Desiccated Coconut Powder, Madihalli, Tiptur, Tumkar, Karnataka. Proposal was received from Karnataka Council for Technological Up-gradation, Vide Online Ref. No:- 0702 / Dated : 18/09/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : TUMKAR

Cluster Name & Location : Desiccated Coconut Powder, Madihalli, Tiptur Brief Information of Cluster Main Product : Desiccated Coconut Powder

Technological details, Pollution angle, etc :

Coconut Water causing pollution, many of Bye products can be made out from waste. the technology used is old and traditional, ETP is not present to treat the water

Age of Cluster : 20

No. of Units : 25

Profiles of Units/Category : Micro : 25, Small : 0, Medium : 0 Women : 0, Village : 0, SC/ST : 2

Turnover (Per Annum) : (Rs. in Lakhs)

1000.00

Export : (Rs. in Lakhs) 1.000

Employment (Direct/Indirect) : Direct : 250, Indirect : 1000 Women : 150, SC/ST : 75

Presence of association/NGO, Contact details :

SPV not yet registered Resource Person Mr. Santhosh Kumar, Ph: 98442 56333

Main Problems of Cluster : Coconut Water causing pollution, many of Bye products can be made out from waste The cluster members lack proper packaging, storage and marketing facilities, ETP is not present to treat the water.

2

Analysis of Proposal

Parameters Proposed by Implementation Agency (IA)

Implementing Agency, its experience in cluster development

Karnataka Council for Technical Up gradation (Govt. of Karnataka) KCTU is the Nodal Agency for Cluster.

Project Cost with break up Total=Rs. 2.45 lakh (Rs. in lakh)

1. Stationery & printing cost 0.40 2. Salary for 3 months 0.90 3. Travelling Cost 0.80 4. Admin. & misc. Cost 0.35 Total 2.45

Technical Agency to be associated & its expertise

Not yet selected. As per GFR consultant will be selected or SPV will make its own arrangements to prepare report.

Justification for DSR The Desiccated coconut industry is a part of a rural industry which employs the rural youth.

Outcomes of conducting DSR It is expected that the diagnostic study will help to bring out the ground reality of the cluster. It will clearly identify the major problems/challenges faced by the cluster.

Amount Recommended : (Rs. in lakhs)

Rs. 2.45 lakh

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Desiccated Coconut Powder, Madihalli, Tiptur, Tumkar, Karnataka at a total cost of Rs. 2.45 lakh with 100% GoI grant.

3

Agenda No.32.1 (ii) Proposal for conducting Diagnostic Study Report (DSR) of Silk Garment Products, Kudur, Ramanagar, Karnataka. Proposal was received from Karnataka Council For Technological Upgradation, Vide Online Ref. No:- 0964 / Dated : 02/12/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : RAMANAGAR

Cluster Name & Location : Silk Garment Products, Kudur Brief Information of Cluster Main Product : Silk Fabrics, Silk Saries


The cluster members are using age old technology and require dying, Throasters Twisting Machine, CAD Design facilities.The cluster don not have any pollution related problem.

Age of Cluster : 5

No. of Units : 300



1500.00




Mr. Balaraj Trilok Panchayat President, Kudur, Ramanagar District Ph: 99866 30914

Main Problems of Cluster : • Lack of New Technology for Better Production. • Lack of Design Studio (CAD) for Better Design. • Lack of Printing, Embroidery and Yarn (dyeing unit).

Any other information : The silk products have huge requirement in the market. The technology backwardness is hindering the growth of the cluster.

4




Karnataka Council for Technological Upgradation (KCTU-Govt. of Karnataka) is the nodal and Implementation Agency for Cluster Projects and MSME Govt. of India Schemes on Behalf of State Government.

Project Cost with break up (Rs. in lakh)

1. Salary 0.90 2. Stationery 0.20 3. Travelling 0.40 4. Misc. 0.30

Total 1.80


The SPV or the State Govt. will select the appropriate consultation agency.

Justification for DSR The Diagnostic Study will help to identify the weak areas where necessary interventions can be suggested to improve the performance of the cluster. It will help to identify the technology gap and DSR will help to suggest the necessary machinery which is available in the market that can be adopted by the cluster members.

Outcomes of conducting DSR The Diagnostic Study will be useful to study the processing methodology of the cluster members. The DSR will layout an implementation schedule of undertaking both soft and hard interventions in the cluster.


1.80

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Silk Garment Products, Kudur, Ramanagar, Karnataka at a total cost of Rs. 1.80 lakh with 100% GoI grant.

5

Agenda No.32.1 (iii) Proposal for conducting Diagnostic Study Report (DSR) of Automobile Servicing Cluster, Auto Nagar, Mysore, Karnataka. Proposal was received from Karnataka Council for Technological Upgradation, Vide Online Ref. No:- 0961 / Dated : 02/12/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : MYSORE

Cluster Name & Location : Automobile Servicing Cluster, Auto Nagar Mysore Brief Information of Cluster Main Product : Automobiles Repairs, Body Building and Painting, Engine Repair

and Engine Tuning, Engineering Works, Gearbox Repair, Metal Fabrication works , Tractor Trailors Manufacturing, Wheel Alignment


The cluster Lacks Advanced Technology for major repair works. Lack of testing and calibration facility, No modern servicing Tools and Equipment, No modern Machinery for Engine Calibration, Gearbox repair etc. Majority of the work is outsourced to units in Bangalore (150 km). The cluster does not have any major pollution problem.

Age of Cluster : 20

No. of Units : 30



1000.00




Contact person: B.D MAHESH RAJ ARS C/O Balaji Auto Diesel Works #2 B.S Road, Mysore-570001 Mobile Number- 9342188951

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Main Problems of Cluster : The Cluster Members Lack Major Repair Machinery for Engine Repair, Gearbox Repair, Differential Repair, Fuel Injection Pump Repair, Engine Testing and Tuning Etc. The present day vehicles are more Electronics Integrated and the cluster mechanics are unequipped and not trained to repair these new vehicles. Hence the cluster members need a training center.

Any other information : Mysore is tourism hub. Many national and international tourist visits Mysore daily as a result the transportation industries is very important. The transportation industry is also required for supporting the huge industrial logistic handling. There are nearly 1500 engineering industries, 75 granite processing industries, 50 packaging industries, and 200 other industries are housed in the district. These industries are supported by the huge transport vehicles. The transport vehicle and other public utility vehicles need regular repair and maintenance. The cluster is providing strength to this industries but the cluster lack many machineries as a result the quality of service is detracting.





Project Cost with break up (Rs. in lakh)

1. Salary 0.95

2. Stationery 0.50

3. Travelling 0.55

4. Misc. 0.50

Total 2.50


The state Govt. or the SPV will select the appropriate consultation company for DSR preparation.

Justification for DSR The automotive repair industry is the backbone of the automobile industry and transport industry. There is immediate need to strengthen this industry as majority of the vehicles are now a days manufactured with high level of comfort supported by advance technology. The mechanics do not get training and may lose their

7


jobs. The DSR will help to identify the necessary area of interventions in the cluster to strengthen the cluster.

Outcomes of conducting DSR The Diagnostic Study will help to identify the technology gap and DSR will help to suggest the necessary machinery which is available in the market that can be adopted by the cluster members. The Diagnostic Study is expected to give more inputs about the technological requirement of the cluster members and will suggest the necessary action plan for the soft and hard interventions.


2.50

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Automobile Servicing Cluster, Auto Nagar, Mysore, Karnataka at a total cost of Rs. 2.50 lakh with 100% GoI grant.

8

Agenda No. 32.1 (iv) Proposal for conducting Diagnostic Study Report (DSR) of Engineering Cluster, Mysore Industrial Area, Mysore, Karnataka. Proposal was received from Karnataka Council For Technological Upgradation, Vide Online Ref. No:- 0960 / Dated : 01/12/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : MYSORE

Cluster Name & Location : Engineering Cluster, Mysore Industrial Area Brief Information of Cluster Main Product : Engineering Products


The cluster members are using conventional technology. The cluster lack advance machinery like CNC Machines and VMC Machines. The cluster lack material testing and other calibrations facilities. The cluster don not have any pollution related problem.

Age of Cluster : 10

No. of Units : 25



2085.00




Sri. N. LingarajeGowda # 331 / A, Hebbal Industrial Area, Opp. Infosys, Mysore Mob: 9342771788 Email:- [email protected]

Main Problems of Cluster : Presently working with conventional machines, Machines are not up-to-date with which most of them are unable to meet quality standards. Inadequate machining facilities and Lab Testing Facilities not available locally, due to these industries are forced to

9

go to various other industrial cities which are becoming very expensive and time consuming. Unable to meet JIT and other industries requirements. We are losing orders and customers. And also unable to compete with our neighbour States.

Any other information : The cluster is one of the biggest industrial cluster of the state and is providing support to many multinational companies and other PSUs the cluster is not able to meet the ever changing quality norms due to the lack of advance machineries.

Analysis of Proposal Parameters Proposed by Implementation Agency (IA)



Project Cost with break up

(Rs. in lakh) 1. Stationary and Printing 0.30 2. Salary for 3 months 0.90 3. Travelling cost 0.60 4. Admin and Misc. Cost 0.35

Total 2.15


The SPV or the State Govt. will select the appropriate consultation agency. Already the SPV has approached Intaglio technical and business services, a cluster technical consultancy company for the DSR work.

Justification for DSR The Diagnostic Study will help to identify the weak areas where necessary interventions can be suggested to improve the performance of the cluster. The DSR will layout an implementation schedule of undertaking both soft and hard interventions in the cluster.

Outcomes of conducting DSR

The Diagnostic Study will be useful to identify the processing methodology of the cluster members, it will help to identify the technology gap and DSR will help to suggest the necessary machinery which is available in the market that can be adopted by the cluster members. The DSR will guide to take necessary interventions both soft Interventions and Hard Interventions for the cluster Growth.


2.15

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Engineering Cluster, Mysore Industrial Area, Mysore, Karnataka at a total cost of Rs. 2.15 lakh with 100% GoI grant.

10

Agenda No. 32.1 (v) Proposal for conducting Diagnostic Study Report (DSR) of Printing Cluster, Koorgalli Industrial Area, Mysore, Karnataka. Proposal was received from Karnataka Council For Technological Upgradation, Vide Online Ref. No:- 0959 / Dated : 01/12/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : MYSORE

Cluster Name & Location : Printing Cluster, Koorgalli Industrial Area Mysore Brief Information of Cluster Main Product : Business cards, Text Books, Pamphlets Journals, , Printing of

Banners, Broachers, Printing of Books, Cards, Calenders, Printing of Packaging Materials, Printing of Wedding cards


Majority of the printers used in the cluster are outdated and have a low capacity output. Critical technological gaps are present in the cluster. Raw material availability in the form of papers, ink etc. is limited and most of the times the cluster members have to order or purchase from Bangalore. None of the cluster members possess multi colour printing Machineries and are dependent on Bangalore for these activities which are 150kms away from the cluster. Computer to plate making machine is not present in the cluster, which is an imaging technology used in modern printing processes and very much required in the printing industry. The cluster does not have any major pollution problem.

Age of Cluster : 60

No. of Units : 50



1000.00



11


Mysore Dist Micro Small & Medium Enterprises Association Sri Ramesh Matha Printers No. 1536/2, Vaanivilas Road, Agrahara Circle, Mysore. Email:[email protected], Mob. 9448600509

Main Problems of Cluster : Presently working with conventional machines, Machines are not up-to-date with which most of them are unable to meet quality standards. Inadequate machining facilities and Lab Facilities available locally, industries are forced to go to various other industrial cities like Bangalore which are becoming very expensive and time consuming Unable to meet consumers printing requirements and losing orders and valuable customers for lack of advanced facilities.

Any other information : The cluster has huge business potential as Mysore is the second biggest and commercial capital of Karnataka. The Cluster members are catering to the entire district print requirement and also the neighboring districts. Mysore being a city of culture and heritage lots of printing activities are undertaken for different cultural and historical events throughout the year.





Project Cost with break up (Rs in lakhs) 1. Salary 0.90 2. Stationary 0.40 3. Travelling 0.40 4. Misc. 0.30 Total 2.00


The SPV will select the appropriate Consultant agency to undertake the DSR work.

Justification for DSR The Diagnostic Study will help to identify the weak areas where necessary interventions can be suggested to improve the performance of the cluster.

Outcomes of conducting DSR The Diagnostic Study will be useful to study the technology gap of the cluster members, the DSR will help to suggest the necessary machinery

12


which are available in the market that can be adopted by the cluster members. The Diagnostic Study is expected to give more inputs about the technological requirement of the cluster members and will suggest the necessary action plan for the soft and hard interventions.


2.00

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Printing Cluster, Koorgalli Industrial Area, Mysore, Karnataka at a total cost of Rs. 2.00 lakh with 100% GoI grant.

13

Agenda No.32.1 (vi) Proposal for conducting Diagnostic Study Report (DSR) of Wool Cluster, Hosdurga, Chitradurga, Karnataka. Proposal was received from Karnataka Council for Technological Upgradation, Vide Online Ref. No:- 0958 / Dated : 01/12/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : CHITRADURGA

Cluster Name & Location : Wool Cluster, Hosdurga Brief Information of Cluster Main Product : Wool Products, Woolen Kambli, Woolen Mats, Woolen Mats,

Woolen Shawls, Woolen Sweaters, Woolen Winter Wears


The cluster members are using age old technology and require dying, Curling, Tufting and Design Development facilities. The cluster don not have any pollution related problem.

Age of Cluster : 5

No. of Units : 35



70.000




Not yet formed

Main Problems of Cluster : 1) Old Technology 2) Curling & Spinning Machine 3) Yarn Dyeing facility not present

Any other information : The wool and wool products have huge requirement in the market. The technology backwardness is hindering the growth of the cluster.

14




Project Cost with break up (Rs in Lakh) 1. Salary 0.90 2. Stationary. 0.30 3. Travelling. 0.40 4. Misc. 0.20 Total 1.80


The SPV or the State Govt. will select the appropriate consultation agency. Already the cluster members have approached Mr. D.S Manjunath a Consultant for DSR Preparation.




1.80

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Wool Cluster, Hosdurga, Chitradurga, Karnataka at a total cost of Rs. 1.80 lakh with 100% GoI grant.

15

Agenda No.32.1 (vii) Proposal for conducting Diagnostic Study Report (DSR) of Wool Cluster, Chelkere, Chitradurga, Karnataka. Proposal was received from Karnataka Council for Technological Upgradation, Vide Online Ref. No:- 0957 / Dated : 01/12/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : CHITRADURGA

Cluster Name & Location : Wool Cluster, Chelkere Brief Information of Cluster Main Product : Woolen Kambli, Woolen mats, woolen Products, Woolen Showals

, Woolen Sweater


The cluster members are using age old technology and require dying, Automatic Knitting, Curling, tufting and design development facilities The cluster don not have any pollution related problem.

Age of Cluster : 15

No. of Units : 40



260.00




Mr. Naveen Chelkere, Chitrdurga District PH: 89701 71993

Main Problems of Cluster : 1)Old Technology 2) Curling Machine, Spinning Machine 3) Cannot make better products

Any other information : The wool and wool products have huge requirement in the market.

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The technology backwardness is hindering the growth of the cluster.




Project Cost with break up (Rs in Laks) 1. Salary. 0.90 2. Stationary. 0.30 3. Travelling. 0.40 4. Misc. 0.20

Total 1.80


The SPV or the State Govt. will select the appropriate consultation agency. Already the cluster members have approached Mr. D.S Manjunath a Consultant for DSR Prepration.




1.80

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Wool Cluster, Chelkere, Chitradurga, Karnataka at a total cost of Rs. 1.80 lakh with 100% GoI grant.

17

Agenda No. 32.1 (viii) Proposal for conducting Diagnostic Study Report (DSR) of Puffed Rice Processing Cluster, Harappanahalli, Davanagere, Karnataka. Proposal was received from Karnataka Council for Technological Upgradation, Vide Online Ref. No:- 0956 / Dated : 01/12/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : DAVANAGERE

Cluster Name & Location : Puffed Rice Processing Cluster, Harappanahalli Brief Information of Cluster Main Product : Puffed Rice


The cluster members are using age old technology. The productivity of the cluster is poor due to use of conventional roasters for preparing puffed rice. The cluster needs automatic dryers and cleaning machineries. The cluster do not have any Major pollution related problem but the use of wood and tyres and other materials is creating little air pollution problems. This can be solved by adopting automatic rosters, the cluster members are incapable to go for technology up gradation due to lack of financial assistance and poor financial conditions.

Age of Cluster : 10

No. of Units : 21



300.00




Roushan Grama Virudh Sangha President= Mr. Basha-9448020921

Main Problems of Cluster : Lack of Mechanized Roasting and Cleaning Machines,

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Un hygienic processing, poor quality parameters, Lack of Proper, Improper marketing, Lack of Storage Facilities.

Any other information : The cluster region is having huge availability of raw material as the region surrounding the cluster is also known as rice basket of Karnataka. There is huge availability of paddy in the cluster region. This has motivated the starting up of many puffed rice processing units. The technology backwardness is hindering the growth of the cluster.




Project Cost with break up (Rs. in lakh) 1. Stationery & Printing 0.30 2. Salary for 3 months 0.80 3. Travelling Cost 0.50 4. Admn. & Misc 0.40

Total 2.00


IntaGlio Technical and Business Service will be the technical agency to conduct and prepare DSR. The Company has executed many cluster projects in Karnataka and other states of India. The company has got required technical experts to undertake the DSR Work.

Justification for DSR The major problem of the cluster is the roasting mechanism that is age old system producing little air pollution. There are many new technology based systems have been developed and the cluster members are not aware of the systems. The DSR will help to bring the cluster members together, it will help to estimate the actual technological support needed by the cluster members. The discussions during the DSR Work will help to study the problems of the cluster members and will be useful to propose the required interventions. The Diagnostic Study will help to identify the weak areas where necessary interventions can be suggested to improve the performance of the cluster. It will help to identify the technology gap and DSR will help to suggest the necessary machinery which is available in the market that can be adopted by the cluster members.

19


Outcomes of conducting DSR The DSR will help to bring the cluster members together, it will help to estimate the actual technological support needed by the cluster members. The discussions during the DSR Work will help to study the problems of the cluster members and will be useful to propose the required interventions. The Diagnostic Study will be useful to study the processing methodology of the cluster members. The DSR will layout an action plan for undertaking both soft and hard interventions in the cluster.


2.00

Proposal for Steering Committee: As the critical mass in the cluster is less than 25 units, Cluster Division recommends the proposal may be dropped.

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Agenda No.32.1 (ix) Proposal for conducting Diagnostic Study Report (DSR) of Jewellery, Gandhi Bazar, Shimoga, Shimoga, Karnataka. Proposal was received from Karnataka Council for Technological Upgradation, Vide Online Ref. No:- 0955 / Dated : 01/12/2012 & recommended by MSME-DI, Bangalore. Pre-registration Information Name of Organization : KARNATAKA COUNCIL FOR TECHNOLOGICAL

UPGRADATION

State : KARNATAKA

District : SHIMOGA

Cluster Name & Location : Jewellery, Gandhi Bazar, Shimoga Brief Information of Cluster Main Product : Gold , Silver and Diamond Jewellery ornaments


The cluster members are majorly using old design patterns and require design and development centre. The cluster need a common raw material bank as the procurement of the raw material is little challenging. The cluster has good market and there is no pollution related issues in the cluster.

Age of Cluster : 40

No. of Units : 50



3000.00




Shimoga Jewellery Cluster, Shimoga.. Contact Person: Senthil Velan Project coordinator, Sri Ambika Jewellers Gandhi Bazar Shimoga. 98440-21221

Main Problems of Cluster : Lack of design, Testing, Good finishing, Design, raw material availability, packaging, out sourcing special works.

Any other information : The cluster members have good skills and are creating designs out

21

of their skills, but the present day consumer market is ever changing with the stiff competitions from Multinational Brands entering in to the market and adopting advance technology. The cluster products have very huge market demand in national and international market. The export of the cluster products need greater design diversification and better marketing and packaging system. The cluster can bring huge revenue to the nation if promoted with export oriented support.




Project Cost with break up (Rs in Lakh) 1. Salary 0.95 2. Stationary 0.50 3. Travelling. 0.30 4. Misc. 0.50

Total 2.25


The consultant will be selected As per Policy of the Govt. Or the SPV will select the appropriate technical agency.

Justification for DSR The DSR will be able to evaluate the challenges faced by the cluster members and the diagnostics study is very necessary to prepare an action plan for the cluster interventions.

Outcomes of conducting DSR DSR Work will help to study the problems of the cluster members and will be useful to propose the required interventions. The cluster basic study has suggested some key interventions like skill upgradation, design and development centre and common raw material and marketing centre. The DSR will help to exactly point out the necessary interventions and also the action plan for the implementation of the action plan.

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Jewellery, Gandhi Bazar, Shimoga, Shimoga, Karnataka at a total cost of Rs. 2.25 lakh with 100% GoI grant.

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Agenda No. 32.2: Proposal for Soft Interventions in Food Processing, Sakarayapatana, Chikkamagalore, Karnataka. Proposal was received from Karnataka Council for Technological Upgradation, Vide Online Ref. No:- 0905 / Dated : 21/11/2012 & recommended by MSME-DI, Bangalore. Details of the proposal are as under: DSR Details DSR Conducted By : IntaGlio Technical and Business Services, Bangalore

Validated By : DIC, KCTU, MSME Hubli, MSME Bangalore

When Started : 08/06/2012

When Completed : 18/07/2012 Pre-registration Information Name of Cluster : Food Processing Cluster

State : Karnataka

District : Chikkamagalore

Cluster Product & Location : Food Processing, Sakarayapatana Brief Information of Cluster Main Product : Banana Chips, Sukeli, Fried jackfruit flakes, Papads, Fruit based

products Jackfruit Jam, Gooseberries pickles, Guava Jam and Amla candies, Jackfruit Seed Powder, Tamarind powder, candies


The cluster lack advance technology for pulp making, jam making, lack cold storage, Dryers, lack Nitrogen Packaging Machines. The clusters by products are bio-degradable. Also there is no major waste which is harmful to the nature.

Age of Cluster : 10

No. of Units : 50

Profiles of Units/Category : Micro : 50, (Women-40, Village-50, SC/ST-5)


225.000


Employment (Direct/Indirect) : Direct : 200 Indirect : 800

23

Women : 160 SC/ST : 15


Ankura Ahra Samskaranna Sangha, Sakarayapatana town in Kadur Taluk,Chikamagalur district, Karnataka Contact: Mr. Shivanna-09481409660

Whether DSR conducted. Main outcomes of DSR :

Yes, 1.Trust Building within Stake Holders 2.Capacity building & awareness 3.Motivation of Entrepreneurs 4.Create Interest towards cluster development 5.Sharing of information.

Extent of Competition for cluster :

Growing competition from Multi National Companies and Indigenous modern fruit processing industries.

Main Problems of Cluster : The cluster members lack modern technology and depend upon conventional age old technology for their process. Use of traditional Chullas, No Value addition taking place, lack of packaging facilities, Lack of Cold storage facilities, lack of common branding and marketing

Need for CFC, if any : The diagnostic study recommends the following hard interventions 1.Common facility centre establishment with advance technology. 2. Common facility centre with fruit pulp and juice extraction. 3. Common Drying Machinery. 4. Common Cold Storage Facility. 5. Common quality Testing centre for Processed Products. 6.Common Packaging Canter

Any other information : The Food industry is considered as a recession proof industry and there is always demand from this kind of industry in both national and global market. According to Ministry of Food Processing Statistics India has exported 3,39,980 MT of processed fruits and vegetables to the world for the worth of Rs. 1315.93 crores during the year 2010-11.

Analysis of Proposal Parameters Proposed by Implementation Agency

(IA) Comments by Cluster

Division Implementing Agency, its experience in cluster development

Karnataka Council for Technological Up gradation (Govt. of Karnataka). KCTU is the Nodal and Implementing Agency for Cluster projects and Govt. of India MSME Schemes on behalf of State Government.

An undertaking of Govt. of Karnataka and as per guidelines

24


Comments by Cluster Division

Activities Proposed (Technology/Quality/Marketing/Export/ Design, etc.)

Trust Building Different Types of Awareness Programme Skill Development With Practical Demonstration Programme Financial Management Training Programme Study Tours To Other Clusters Programme On Packaging CAPACITY BUILDING, Website Launching, Brochure Preparation

---

Whether DSR validated by the stakeholders

Yes, the SPV Members have validated the DSR. The DSR is validated jointly by SPV, DIC, KCTU and MSME regional Office.

---

Project Cost with break up : Project Cost : 5.250 lakh GOI Contribution : 4.600 lakh Cluster Beneficiaries : 1.000 lakh

---


DIC Chikamagalore, MSME Regional Office, Indian institute of Packaging, Govt. of India, KCTU, IntaGlio Technical and Business Services consultancy

---

Justification for SI The cluster members have little knowledge about the modern technology and practices. The Soft Intervention will help to undertake trust building, capacity building of the cluster members which will help to educated the cluster members on advance technology, packaging practices, marketing strategies, and financial management.

---

Main outcomes (before & after) in terms of sales, Exports, Investment, Profitability, Employment, ISO & other Certification, others

Expected Outcome 1.Turnover-Before 225 lakhs, After 600 lakhs 2. No. Units- Before 50, After 100 3. Employment- Before200, After 400. 4. Export- Before Direct Nil, After 5 Units Direct 5. ISO-Before Nil, After-10

---

25

Action Plan (for Months) & Budget (Rs in lakh)

Description Total GOI Association Outcome 01. TRUST BUILDING :- 2 nos.

(one day each)Organizing Meetings/ Seminars for cluster actorsNo. of participants- 25 (each Programme) Month-1 SUPPORT AGENCY:1-DIC, Chikamagalur2-KCTU Bangalore3- MSME- DI,4-Intaglio C D5-SPV-Executive Counci

0.440 0.396 0.044 1.Trust Building within Stake Holders2.Capacity building & awareness 3.Motivation of Entrepreneurs 4.Create Interest towards cluster development 5.Sharing of information.

02. DIFFERENT TYPES OF AWARENESS PROGRAMME ON :2 nos. One Day eachMonth-1 Cluster Programme, MSME, NSIC Scheme, State Govt. Schemes, Quality upgradation, Waste minimization, Energy Conservation, Use of modern machinery equipments, Faculty support from concerned office.For each Programme no. of participants 25 No.sSUPPORT AGENCY :-1-DIC, Chikamagalur2-KCTU Bangalore3- MSME- DI,4-Inta

0.440 0.396 0.044 Introducing modern technology, Use of latest machinery, Improvement in quality of production, Market awareness, Enhancement of knowledge on different Govt. schemes, awareness of availability of Modern machinery and technology.

03. TRAINING PROGRAMME ON :- 2 nos.Month-2 and Month-3(I) SKILL DEVELOPMENT WITH PRACTICAL DEMONSTRATION :-10 days duration per

0.800 0.640 0.160 Increase in productivity, Improvement in quality and up-gradation of Skill and process

26

Programme For each Programme no. of participants-50. SUPPORT AGENCY :-1-DIC, Chikamagalur2-KCTU Bangalore3- MSME- DI,4-Intaglio C D5-Dept. of KIV6-DefenceFood Research Organization-DFRL Mysore/Central Food Training and Research Instit

04. (II) FINANCIAL MANAGEMENT TRAINING PROGRAMME :- 1 Nos.(two days duration Programme) Month-4No. of participants-50 each.Cost details per ProgrammeSUPPORT AGENCY :-1-DIC, Chikamagalur2-KCTU Bangalore3- MSME- DI,4- Lead Bank Chikamagalur and Local Management Institute

0.360 0.288 0.072 Knowledge on accounting procedures and maintaining books of accounts Budgeting procedure, Estimation of value of Products, Operation of Financial Transaction of businessAwareness on Government Rules and Regulations

05. Study tours to Other Clusters-2 Nos. 4 DaysMonth-5 No. of participants-10 each.SUPPORT AGENCY :1-DIC, Chikamagalur2-KCTU 3-S.P.V. 4-Intaglio C D

0.600 0.480 0.120 awareness about CFC and Its Management.

06. IV)PROGRAMME ON PACKAGING :- 1 Nos. (30 participants) With Indian institute of Packaging, Govt. of India, etc.(2 days duration)Month-6 DIC, KCTU, NSIC & INDIAN INSTITUTE OF

0.260 0.208 0.052 To learn modern and attractive packaging of cluster products as per the demand and liking of customers

27

PACKAGING Chennai

07. CAPACITY BUILDING :-Months -6 Website launching and Up-gradation for Brochure Preparation1- S.P.V2- Intaglio Technical and Business Services-BANGALORE

0.400 0.240 0.160 Internet Marketing and Product Hard and Soft Marketing.

08. Local Travel,Telephone, Stationery & Miscellaneous(@ Rs. 5,000 for 6 months)

0.300 0.300 0.000 capacity Enhancement

09. Local Purchases-1)Computer-Rs. 35,000/-2)Telephone, -Rs. 2,000/-3)Printers -Rs. 8,000/-4)LCD Projector-Rs. 30,000/-

0.750 0.750 0.000 Technical Capacity Building and Office Setup

10. Participation of CDE/CDAFor Six Months including TA/DA @ Rs. 15,000/-per month(6x15,000/-= Rs. 90,000/-)

0.900 0.900 0.000 operational Expenses

Total: 5.250 4.598 0.652 Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for Soft Interventions in Food Processing, Sakarayapatana, Chikkamagalore, Karnataka at a total cost of Rs. 5.250 lakh and GoI grant of Rs. 4.598 lakh & remaining Rs. 0.652 lakh to be contributed by cluster units/associations.

28

Agenda No. 32.3: Proposal for Soft Interventions in General Engineering and Agricultural Implement Manufacturing Cluster, K.M. Doddi village, Maddur Taluk , Mandya, Karnataka. Proposal was received from Karnataka Council For Technological Upgradation, Vide Online Ref. No:- 1015 / Dated : 20/12/2012 & recommended by MSME-DI, Bangalore. DSR Details DSR Conducted By : IntaGlio Technical & Business Services Bangalore

Validated By : SPV, DIC-Mandya, MSME- DI-Bangalore, KCTU-Bangalore


When Completed : 16/08/2012 Pre-registration Information Name of Cluster: General Engineering and Agricultural Implement Manufacturing

Cluster

State : KARNATAKA

District : MANDYA

Cluster Product & Location : General Engineering and Agricultural Implement Manufacturing, K.M. Doddi village, Maddur Taluk

Brief Information of Cluster Main Product : Agriculture Implements, like Puddlers, Bund, Bullock carts

making, Carpentry work based products, Cultivators, Disc Harrows, Ploughs, Metal fabrication works based products, Rotavators, Land preparation Equipments, Soil Scoops, Tramplers


The cluster members are using conventional age old technology and do not have any modern machinery. Instead the cluster units are using the traditional methods of making the agricultural implements and almost every step of the process is done manually. The general manufacturing process followed is welding, fabrication, tooling, machining and painting. There are no Pollution related issues in the cluster.

Age of Cluster : 30

No. of Units : 80

Profiles of Units/Category : Micro : 80 Small : 0 Medium : 0 Women : 0 Village : 0 SC/ST : 6

29


525.000


Employment (Direct/Indirect) : Direct : 350, Indirect : 1000 Women :70, SC/ST :30


Vishwakarma General Engineering and Agricultural Implement Cluster K.M. Doddi village, Maddur Taluk of Mandya district. Karnataka


Yes • Trust Building within Stake Holders • Capacity building & awareness • Motivation of Entrepreneurs • Create Interest towards cluster development • Sharing of information.


The cluster members are facing stiff competition from larger manufacturing firms and other National and Multinational Companies.

Main Problems of Cluster : • Poor Raw material procurement and storage methods, the cluster members depend on Middleman and agents.

• Lack of Advance Machinery for Metal Works, fabrication work, Tool making, Tool Room/Machining Centre.

• Lack of Measurement and Calibration Canter • Lack of painting, Product Branding and Packaging • Lack of training and Skill up-gradation.

Need for CFC, if any : Since the cluster members lacks the standards for the manufacturing of their products and the units are using the age old technologies. Hence setting up of the Common Facility Center (CFC) at the cluster location will help the cluster members to upgrade themselves to the latest technologies and the techniques to manufacture a variety of the agricultural implements. The CFC will overcome the problem of raw material, The CFC which is being proposed with modern machinery will bring about holistic c

Any other information : The cluster is having huge market demand as the entire region and the neighbouring districts (around 300km region) are agricultural dominated region and need huge agricultural implements. if the cluster is provided with advance machinery the cluster members will be able to produce quality products and will be able to compete with the larger manufacturing firms.

30

Analysis of Proposal Parameters Proposed by Implementation

Agency (IA) Comments by

Cluster Division


Karnataka Council for Technological Upgradation (Govt. Of Karnataka) is the nodal and implementing agency for cluster projects and Govt. of India MSME Schemes on behalf of State Government.


Activities Proposed (Technology/ Quality/Marketing/Export/ Design, etc.)

1.Trust Building 2. Different Types of Awareness Programmes, Skill development with practical demonstration programme 3. financial management training programme, 4. Study Tours to other clusters, 5. Programme on packaging, Capacity Building, 6. Website and Brochure Preparation.

---


Yes, the Stake Holders/ SPV has validated the DSR, The DSR Validation Program is conducted by inviting SPV Members, DIC-Mandya, MSME-DI Bangalore, and KCTU. The Validation meeting was held under the chairmanship of Additional Director MSME-Govt. of Karnataka.

---


---


DIC Mandya, MSME- Bangalore, KCTU, Intaglio Technical and Business Services, National Institute of Design, Central Food Technology Research Institute.

---

Justification for SI The cluster members have limited knowledge about modern technology and practices. The soft Intervention will help to undertake trust building, capacity building of the cluster members which will help to educate the cluster members on advance

---

31



technology, packaging practices, marketing strategies and financial management

Main outcomes (before & after) in terms of sales, Exports, Investment, Profitability, Employment, ISO & other Certification, othersR

1.Turnover Present 525 lakhs, After1200 lakhs 2.No. of Units Present80 units, After 15 new units 3.Employment Present 350 direct, 1000 indirect. After Additional 100 direct, 500 indirect new employment. 4.Export Present nil, After 5 units 5.ISO Certification Present nil, After 10 Units

---


Description Total GOI Association OutCome 01. TRUST BUILDING :- 2 nos.

(one day each) Organizing Meetings/ Seminars for cluster actors No. of participants- 25 (each Programme) Month-1 ESTIMATED EXPENDITURE :- Hiring of Hall and other arrangements- Rs.5,000/-Hiring of Audio Visual Aids Rs 3,000/- Refreshments Rs.4,000/-Literature Rs.3,000/-<b

0.440 0.396 0.044 Trust Building within Stake Holders 2.Capacity building & awareness 3.Motivation of Entrepreneurs 4.Create Interest towards cluster development5.Sharing of information.

02. DIFFERENT TYPES OF AWARENESS PROGRAMME ON : 2 no. (One Day each) Month1 Cluster Programme, MSME, NSIC Scheme, State Govt. Schemes, Quality upgradation, Waste minimization, Energy Conservation, Use of modern machinery and equipments Faculty support from concerned office.

0.440 0.396 0.044 Introducing modern technology, Use of latest machinery, Improvement in quality of production, Market awareness, Enhancement of knowledge on different Govt. schemes, awareness of availability of Modern machinery and technology.

32

Description Total GOI Association OutCome (For each Programme no. ofparticipants 2

03. TRAINING PROGRAMME ON :- 2 nos.Month-2 and Month-3 (I) SKILL DEVELOPMENT WITH PRACTICAL DEMONSTRATION :- 10 days duration per Programme (For each Programme no. of participants-50. Cost Details:-Hiring of Hall Rs.10,000/-Refreshment Rs.10,000/-Honorarium Rs.10,000/-Raw materials

0.800 0.640 0.160 Increase in productivity, Improvement in quality and up-gradation of Skill and process Improvement

04. Month-4 (II) FINANCIAL MANAGEMENT TRAINING PROGRAMME :- 1 Nos. (two days duration Programme) No. of participants-------------------------------50 each. Cost details per Programme:- Hiring of Hall Rs. 8,000/-Refreshment Rs. 10,000/-Honorarium to guest speaker

0.360 0.288 0.072 Knowledge on accounting procedures and maintaining books of accountsBudgeting procedure, Estimation of value of Products, Operation of Financial Transaction of business Awareness on Government Rules and Regulations

05. III) Study tours to Other Clusters-2 Nos. 4 Days Month-5 No. of participants----------------------10 each. EXPECTED EXPENDITURE :-Expenditure for Fare of train AC II Class and local travel and for boarding and lodging for 5 Days Estimated Expenditure- Rs. 30,000/- per visit.

0.600 0.480 0.120 confidence building.awareness of scheme and working methodology for cluster development.

06. IV)PROGRAMME ON PACKAGING :- 1 Nos. (30 participants) With Indian institute of Packaging, Govt. of India, etc. (2 days duration) Month-6EXPECTED EXPENDITURE :-

0.260 0.208 0.052 To learn modern and attractive packaging of cluster products as per the demand and branding of cluster products.

33

Description Total GOI Association OutCome Rent for hall Rs 6,000/-Honorarium/fee for Consultant Rs10,000/- Refreshment Rs 5,0

07. CAPACITY BUILDING :-Months -6 (Website launching and Up-gradation Rs 30,000/-Brochure Preparation Rs 10,000/-Total Rs.40,000/- SUPPORT AGENCY :1-S.P.V 2-ITBS-BANGALORE

0.400 0.240 0.160 Support for wider publicity of the Cluster and its products

08. Local Travel,Telephone, Stationery & Miscellaneous( Rs. 5,000 for 6 months)

0.300 0.300 0.000 supportive activities for cluster development


0.750 0.750 0.000 capacity building activities for conduction training and awareness programs on cluster development.

10. Participation of CDE/CDAFor Six Months including TA/DA Rs. 15,000/-per month(6x15,000/- = Rs. 90,000/-)

0.900 0.900 0.000 Support in conductioncluster development programs, and other cluster development activities

Total: 5.250 4.598 0.652 Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for Soft Interventions in General Engineering and Agricultural Implement Manufacturing Cluster, K.M. Doddi village, Maddur Taluk , Mandya, Karnataka for at a total cost of Rs. 5.250 lakh and GoI grant of Rs. 4.598 lakh & the remaining Rs. 0.652 lakh to be contributed by cluster units/associations.

34

Agenda No. 32.4: Proposal for Soft Interventions in Embroidery, Garmenting & Zari Cluster, Doddamudahalli, Chamrajanagar, Karnataka. Proposal was received from Karnataka Council for Technological Upgradation, Vide Online Ref. No:- 0913 / Dated : 22/11/2012 & recommended by MSME-DI, Bangalore. DSR Details DSR Conducted By : IntaGlio Technical and Business Services

Validated By : Cluster SPV, KCTU, DIC-Chamrajnagar,MSME-Bangalore


When Completed : 17/07/2012 Pre-registration Information Name of Cluster Embroidery and Readymade Garment Cluster

State : Karnataka

District : Chamrajanagar

Cluster Product & Location : Embroidery, Garmenting & Zari, Doddamudahalli Brief Information of Cluster Main Product : Embroidery Pillow Covers, Embroidery based designed Bags and

Purses, Embroidery Frocks and Churidars, Embroidery Mobile and Camera Pouches, Embroidery Sitting Mat, Readymade Garments with Embroidery


The Cluster Members are not technologically advanced, majority of the work is hand job work. the cluster members lack stitching equipment, Dry Cleaning, and Design Development Facilities, the Products have got good market demand but need value addition and design diversification in terms of new pattern development, packaging. the is no pollution related issue in the cluster.

Age of Cluster : 10

No. of Units : 125



325.00

35


Employment (Direct/Indirect) :

Direct : 1000 Indirect : 2500 Women : 600 SC/ST : 1000


Udyoga Bharathi Mahila Sangha,Doddamudahalli village in chamrajnagar district. Karnataka Contact Person: Mr. Megha Nayak Mobile: +91-9141663533


1.Trust Building within Stake Holders 2.Capacity building & awareness 3.Motivation of Entrepreneurs 4.Create Interest towards cluster development 5.Sharing of information


Lack of product diversification may lead to loss in market share. Stiff competition from emerging countries like China and Thailand. Though competition from other clusters in India.

Main Problems of Cluster : 1. The Banjara cluster artisans have insufficient production facilities. Due to this expected orders from the exporters of Eorde, Selam and Coimbatore (Tamilnadu) are not coming up as they need bulk production. 2. The delay in production is due to lack of machineries for finishing work. 3.Delay in the production process is due to lack of design development centre.

Need for CFC, if any : Many of the cluster members lack Stitching machineries for garment and for finishing products. Machines like juki, kaja making, overlock machine are not available. Cluster members lack mechanized/digital embroidery machineries forborder designing and value addition. The DSR recommends the following Hard Interventions as Common Facilities 1. A Common Facility Center with garment stitching machineries for finishing work.

Any other information : Embroidery is one of the oldest and most popular forms of surface ornamentation of fabrics on garments, and India is among the top suppliers of embroidered fabrics and garments worldwide. Demand for garments embellished with embroideries with mirrors and crystals are quite strong in the international market, as also in India. However, while embroidery is used in a whole lot of products internationally.

36








Trust Building Different Types Of Awareness Programme Skill Development With Practical Demonstration Programme Financial Management Training Programme Study Tours To Other Clusters Programme On Packaging Capacity Building, Website Launching, Brochure Preparation

--


Yes, the SPV Members/Cluster Stakeholders have validated the DSR.

---


---


1-DIC, Chamrajnagar 2-KCTU Bangalore 3-MSME- DI Bangalore 4-Intaglio Technical and Business Services-CDA 5-SPV Executive Body

---

Justification for SI The cluster has a good potential in terms of market. the cluster need support for technology upgradation. The Soft Interventions activities will help to enhance the capacity of the cluster members in terms of technology awareness, quality compliance, Packaging. The Soft interventions will help in trust building among the cluster members. Soft

---

37



Interventions are necessary for bringing awareness about cluster scheme, and other schemes.


1. Number of Units: Before= 125 and After Intervention= 175 2. Employment: Before= Direct 1000 and After Intervention= Direct 1500 3. Turnover: Before= Rs. 325 Lakhs and After Intervention= Rs. 650 Lakhs 4. ISO Certification: Before= Nil and After Intervention= 5 5. Export: Before= Direct-Nil and After Intervention= Direct-5 6. Quality Improvement: Before= and A

---

Action Plan (for Months) & Budget

Description Total GOI Association Outcome 01. TRUST BUILDING :- 2 nos. (one

day each)Organizing Meetings/ Seminars for cluster actorsNo. of participants- 50 (each Programme) Month-1 (Rs. 34,000 X 2 programmes = Rs. 68,000/-) SUPPORT AGENCY: 1-DIC, Chamrajnagar2-KCTU Bangalore3- MSME- DI,4-Intaglio Technical and Business Services CDE 5-SPV

0.680 0.612 0.068 1.Trust Building within Stake Holders 2.Capacity building & awareness 3.Motivation of Entrepreneurs 4.Create Interest towards cluster development 5.Sharing of information

02. DIFFERENT TYPES OF AWARENESS PROGRAMME ON: 2 Number, One Day eachMonth-1 Cluster Programme, MSME, NSIC Scheme, State Govt. Schemes, Quality upgradation, Waste minimization, Energy Conservation,

0.760 0.684 0.076 Introducing modern technology, Use of latest machinery, Improvement in quality of production, Market awareness, Enhancement of knowledge on different Govt. schemes, awareness of availability

38

Description Total GOI Association Outcome Use of modern machinery and equipments, Faculty support from concerned office.(For each Programme Number of participants 50 No.)SUPPORT AGENCY: 1-DIC, Chamrajnagar2-KCTU Bangalore3- MSME- DI,4-Intaglio C D <b

of Modern machinery and technology.

03. TRAINING PROGRAMME ON :- 2 nos. Month-2 and Month-3(I) SKILL DEVELOPMENT WITH PRACTICAL DEMONSTRATION :- 10 days duration per Programme(For each Programme no. of participants-50.) SUPPORT AGENCY :-DIC, Chamrajnagar2-KCTU Bangalore3- MSME- DI,4-Intaglio C D 5-Handlooms and Textile Dept.7-Institute of Fashion Technology Bangalore 6-SPV


04. Month-4 (II) FINANCIAL MANAGEMENT TRAINING PROGRAMME :- 1 Nos. (two days duration Programme)No. of participants-50 each.Cost details per Programme:-SUPPORT AGENCY :-1-DIC, Chamrajnagar2-KCTU Bangalore3- MSME- DI,4- Financial Institution 5-Lead Bank-Chamrajnagar

0.360 0.288 0.072 Knowledge on accounting procedures and maintaining books of accounts Budgeting procedure, Estimation of value of Products, Operation of Financial Transaction of business Awareness on Government Rules and Regulations

05. III) Study tours to Other Clusters-2 Nos. 4 DaysMonth-5 No. of participants-10 each.

0.800 0.640 0.160 To learn modern and attractive packaging of cluster products as per the demand and liking of

39

Description Total GOI Association Outcome EXPECTED EXPENDITURE :-Expenditure for Fare of train AC II Class and local travel and for boarding and lodging for 5 Days Estimated Expenditure@ Rs. 40,000/- per visit.(Rs. 40,000 X 2 programmes = Rs. 80,000/-) SUPPORT AGENCY :1-DIC, Chamrajnagar2-KCTU 3-S.P.V.

customers

06. CAPACITY BUILDING :-Months -6 (Website launching and Up-gradation for Rs 30,000/-Brochure Preparation Rs 20,000/-Total Rs. 50,000/-SUPPORT AGENCY :1-S.P.V 2-Intaglio Technical and Business Services

0.500 0.300 0.200 Support for wider publicity of the Cluster and its products

07. Local Travel,Telephone, Stationery & Miscellaneous(@ Rs. 5,000 for 6 months)

0.300 0.300 0.000 Support Infrastructure for Cluster


0.750 0.750 0.000 Technical capacity Building and office setup

09. Participation of CDE/CDAFor Six Months including TA/DA@ Rs. 15,000/-per month(6x15,000/-= Rs. 90,000/-)

0.900 0.900 0.000 Operational Expenses

10. IV)PROGRAMME ON PACKAGING :- 1 Nos. (30 participants) With Indian institute of Packaging, Govt. of India, etc.(2 days duration)Month-6 EXPECTED EXPENDITURE :-Rent for hall Rs 6,000/-

0.260 0.208 0.052 To learn modern and attractive packaging of cluster products as per the demand and liking of customers

40

Description Total GOI Association Outcome Honorarium/fee for Consultant Rs10,000/- Refreshment Rs 5,000/-Local Travel & Miscellane

Total: 6.410 5.562 0.848

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for Soft Interventions in Embroidery, Garmenting & Zari Cluster, Doddamudahalli, Chamrajanagar, Karnataka at a total cost of Rs. 6.410 lakh and GoI grant of Rs. 5.562 lakh & the remaining Rs. 0.848 lakh to be contributed by cluster units/associations.

41

Agenda No. 32.5: Proposal for Soft Interventions in Printing Cluster Tumkur, Karnataka. Proposal was received from Karnataka Council For Technological Upgradation, Vide Online Ref. No:- 1055 / Dated : 02/01/2013 & recommended by MSME-DI, Bangalore. DSR Details DSR Conducted By : IntaGlio Technical & Business Services, Bangalore

Validated By : SPV, DIC-Tumkur Govt. of Karnataka


When Completed : 24/12/2012 Pre-registration Information Name of Cluster : Printing Cluster

State : KARNATAKA

District : TUMKAR

Cluster Product & Location : Printing products, Tumkur Brief Information of Cluster Main Product : Business cards Print, Calendars Print, Journals Printing, Labels

Print, Pamphlets Printing, Receipt books Print, Text Books Printing, Wedding cards Printing


The cluster members are using Traditional and Old type Offset Printing, Screen Printing, Single colour Printing, Drum type and Plate type Press based Impression Printing Methods. There are no Pollution related issues in the cluster

Age of Cluster : 40

No. of Units : 81



685.00


Employment (Direct/Indirect) Direct : 450 Indirect : 1000 Women : 135 SC/ST : 25

42


Tumkur High Tech Impressions Office Address: No. 26 Swanyabhu Rajatadn behind Sri Devi ladies Taluk & district- Tumkur . Karnataka


Yes 1.Trust Building within Stake Holders 2.Capacity building & awareness 3.Motivation of Entrepreneurs 4.Create Interest towards cluster development 5.Sharing of information.


The cluster is facing stiff competition from Many national and multinational brands.

Main Problems of Cluster : 1) The cluster members are using age old and Traditional methods of printing. 2) The printing industry has changed a lot with the advent of advance machineries with greater capacity and high quality. The cluster members are not able to afford these technologies. 3) The cluster members are not able to cope-up with the market demand and customers demands. 4) Lack of Multi Colour Automatic Printing Machine. 5) Lack of Digital Embossing Mach

Need for CFC, if any : The cluster products have huge market demand in the local market as the cluster location is known to be educational hub of the State. The skilled labour and artistic persons with great creativity in the printing business has resulted in the formation of the cluster in this region. The cluster members are using age old and traditional methods of printing. The cluster is facing stiff competition from many national and multinational brands.

Any other information : The cluster products have huge market demand in the local market as the cluster location is known to be educational hub of the state. Majority of the text books are published in the cluster region for the state. The cluster is strategically located at the centre of few of the major cities of the state such as Bangalore, Mysore, Mandya, Chitradurga, and Davengere. This has boosted the cluster market and business. The skilled labour and artistic persons with great creativity in the printing business





Karnataka Council for Technological Upgradation

An undertaking of Govt. of Karnataka and as per

43



(Govt. Of Karnataka) is the nodal and implementing agency for cluster projects and Govt. of India MSME Schemes on behalf of State Government.

guidelines


Trust Building Different Types of Awareness Programmes, Skill development with practical demonstration programme financial management training programme, Study Tours to other clusters, Programme on packaging, Capacity Building, website and Brochure Preparation.

---


Yes, the SPV members/ stakeholders have validated the DSR

---

Project Cost with break up : Project Cost :6.660 lakh GOI Contribution :5.844 lakh Cluster Beneficiaries : 1.000 lakh

Project cost restricted as per guidelines.


DIC Tumkur, MSME- Bangalore, KCTU, Intaglio Technical and Business Services, Govt. Institute of Printing Technology Bangalore and Research, Financial Institutions.

---

Justification for SI The cluster members have limited knowledge about modern technology and practices. The soft Intervention will help to undertake trust building, capacity building of the cluster members which will help to educate the cluster members on advance technology, packaging

---

44



practices, marketing strategies and financial management.


The Soft Interventions will help in trust building and capacity building, the Hard interventions will have the following benefits Expected Outcome 1.Turnover: Present 685 lakhs, After 1200 lakhs 2.No. of Units: Present=81 units, After- 150 new units 3.Employment: Present 450 direct, 1000 indirect. After 1000 direct, 2500 indirect new employment. 4.Export : Present nil, After 10 units

---


Description Total GOI Association OutCome 01. TRUST BUILDING :- 2 nos. (one day

each) Organizing Meetings/ Seminars for cluster actorsNo. of participants- 25 (each Programme) Month-1 SUPPORT AGENCY: 1-DIC, Tumkur2-KCTU Bangalore3- MSME- DI,4-Intaglio C D 5-SPV

0.700 0.630 0.070 1.Trust Building within Stake Holders2.Capacity building & awareness 3.Motivation of Entrepreneurs 4.Create Interest towards cluster development 5.Sharing of information.

02. DIFFERENT TYPES OF AWARENESS PROGRAMME ON :2 nos. One Day eachMonth-2

0.80 0.72 0.08 Introducing modern technology, Use of latest machinery, Improvement in

45

Description Total GOI Association OutCome Cluster Programme, MSME, NSIC Scheme, State Govt. Schemes, Quality upgradation, Waste minimization, Energy Conservation, Use of modern machinery & equipments, Faculty support from concerned office.(For each Programme no. of participants 25 No.s)SUPPORT AGENCY :1-DIC, Tumkur2-KCTU Bangalore3- MSME- DI,4-In

quality of production, Market awareness, Enhancement of knowledge on different Govt. schemes, awareness of availability of Modern machinery and technology.

03. TRAINING PROGRAMME ON :- 2 nos. Month-3 and Month-4(I) SKILL DEVELOPMENT WITH PRACTICAL DEMONSTRATION :-10 days duration per Programme(For each Programme no. of participants-25. SUPPORT AGENCY :-1-DIC, Tumkur2-KCTU Bangalore3- MSME- DI,4-Intaglio C D 5-Institute of Printing Technology, Bangalore 6-SPV


04. (II) FINANCIAL MANAGEMENT TRAINING PROGRAMME :- 1 Nos.(two days duration Programme)No. of participants--50 each.Cost details per Programme:-Month-5

0.500 0.400 0.100 Knowledge on accounting procedures and maintaining books of accountsBudgeting procedure, Estimation of value of Products, Operation of Financial Transaction of businessAwareness on Government Rules and Regulations

05. III) Study tours to Other Clusters-2 Nos. 5 DaysMonth-6

1.000 0.800 0.200 1.The main purpose of the visit is to give the cluster members an

46

Description Total GOI Association OutCome No. of participants---10 each.EXPECTED EXPENDITURE :-Expenditure for Fare of train AC II Class and local travel and for boarding and lodging for 5 Days Estimated Expenditure Rs. 50,000/- per visit.(Rs.50,000 X 2 programmes = Rs. 1,00,000/-)

exposure to the existing cluster.2.To motivate the cluster members towards positive collaborations and collective working.3.To unable the cluster members to learn about the cluster formation and the cluster approach mechanism adopted by the visited clusters.

06. CAPACITY BUILDING :-Months -7 (Website launching and Up-gradation for Rs 35,000/-Brochure Preparation Rs 15,000/-Total Rs.50,000/-SUPPORT AGENCY :1- S.P.V2- ITBS-BANGALORE

0.500 0.300 0.200 Support for wider publicity of the Cluster and its products etc.supportive infrastructure for marketing and branding.

07. Local Travel, Telephone, Stationery & Miscellaneous (Rs. 5,000/- per month, for 8 months)

0.400 0.400 0.000 Cluster development supportive activities


0.750 0.750 0.000 Supportive infrastructure for cluster development and training.

09. Participation of CDE/CDAFor Six Months including TA/DARs. 15,000/-per month(7x15,000/-= Rs. 1,05,000/-)

1.050 1.050 0.000 Supportive agency, resource personal for cluster development and training activities

Total: 6.40 5.61 0.79 Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for Soft Interventions in Printing Cluster Tumkur, Karnataka at a total cost of Rs. 6.40 lakh and GoI grant of Rs. 5.61 lakh & the remaining Rs. 0.79 lakh to be contributed by cluster units/associations.

47

Agenda No. 32.6: Proposal for conducting Diagnostic Study Report (DSR) in Rice Milling Cluster, Tehsil Dabra Dist. Gwalior, Gwalior, Madhya Pradesh. Proposal was received from Dabra Rice Mills Cluster, Vide Online Ref. No:- 1019 / Dated : 25/12/2012 & recommended by MSME-DI, Indore. Pre-registration Information Name of Organization : DABRA RICE MILLS CLUSTER

State : MADHYA PRADESH

District : GWALIOR

Cluster Name & Location : Rice Milling Cluster, TEHSIL DABRA DIST. GWALIOR Brief Information of Cluster Main Product : Export Quality Rice (Vasmati)

Technological details, Pollution angle, etc. :

Traditional , Morden/High Polished Rice

Age of Cluster : 100

No. of Units : 40



31000.00



Direct : 400, Indirect : 300 Women : 300, SC/ST : 100


Jairam Gupta (Lohiya) President Laghu Udyog Association Dabra LOHIYA MARKET WARD NO 6 SUBHASH GANJ DABRA, Gwalior-475110 Contact No. 9827611455, 07524-223318 Email- [email protected]

Main Problems of Cluster : • Poor Infrastructure, • Lack of latest technology, • Low Productivity, • Poor linkage with export houses • Absence of value added product

48

Any other information : Bright Future In Rice Industries in Dabra Dist- Gwalior. These Industries is Runing since Last 100 Years but could not utilize its optimum Capacity



MPLUN/ AKVN

Project Cost with break up Rs. 2.50 lakh GoI- Rs. 2.25 lakh Cluster members- 0.25 lakh


Center for Entrepreneurship Development, MP/MPLUN/AKVN or as decided by Director of Industries

Justification for DSR To access the need of the cluster in respect of Technical And managerial Aspect

Outcomes of conducting DSR Proper Development of cluster - Technology, Economical, cost effectiveness, value edition and Marketing


Rs. 2.50 lakh

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Rice Milling Cluster, Tehsil Dabra, District Gwalior, Madhya Pradesh at a total cost of Rs. 2.50 lakh and GoI grants of Rs. 2.25 lakh.

49

Agenda No. 32.7: Proposal for Soft Interventions in Handloom Weavers Cluster, Churachandpur town area, Manipur. Proposal was received from Imphal, Vide Online Ref. No:- 0970 / Dated : 05/12/2012 from Imphal (Central Government) & recommended by MSME-DI, Imphal. DSR Details DSR Conducted By : MSME-DI, Imphal

Validated By : State Industries Department, Govt. of Manipur


When Completed : 15/03/2012 Pre-registration Information Name of Applicant : Imphal

State : Manipur

District : Churachandpur

Cluster Product & Location : Handloom, Churachandpur town area and surrounding Brief Information of Cluster Main Product : Shawls, Mekhla, Bed Sheets, Ladies wear, Muffler etc.


Introduction of Fly shutter loom with Jacquate and other attachment to improved design and quality.

Age of Cluster : 15

No. of Units : 60

Profiles of Units/Category : Micro : 60 Small : 0 Medium : 0


45.00





The Good Samaritan Foundation, Tuibuong Churachandpur, Contact details,Mobile:+919612480816, E-mail:[email protected]

50


Instill trust and confidence amongst the cluster actors, stakeholders,etc.


There are other similar cluster in the state and they have to compete with these cluster in terms of production, quality, marketing etc.

Main Problems of Cluster : Raw material, marketing support, technology, credit, lack of awareness of weavers on various facilities etc.

Need for CFC, if any : Does not arise, so far.

Any other information : The cluster is expected to export its product after S.I, Analysis of Proposal Parameters Proposed by Implementation

Agency (IA) Comments by

Cluster Division


The propose cluster will be implemented by MSME-DI, Imphal, central govt. organization

Ok.


To upgrade technology, to improved design and product quality, better marketing and explore export avenue.

Ok.


Yes,

Project Cost with break up : Project Cost : 18.00 lakh GOI Contribution : 15.00 lakh Cluster Beneficiaries : 1.80 lakh State Govt. contribution: 1.20 lakh

Ok


National handloom development corporatioptt. and MSME-DI, Imphal

-

Justification for SI To generate more employment and sustained growth improved socio-economic situation of weavers, protection of traditional handloom products through IPR etc.

-

Main outcomes (before & after) in terms of sales, Exports, Investment, Profitability, Employment, ISO & other Certification, others.

It is expected awareness level of weavers will be increase and improved marketing channel resulting in increase sale volume, profitability, certification, welfare of weavers. etc.

-

51


Description Total GoI State Govt.

SPV/Pvt. Partner

Outcome

01. Trust building (organizing meetings, seminars for cluster actors) 4 meetings

0.80 0.70 0.05 0.05 Instill trust and confidence amongst the cluster actors, stakeholders, etc.

02. Building awareness of various schemes of Ministry of MSME, other Ministries and Departments of State & Central Govt, other developmental agencies, Financial institutions etc (2 programmes)

0.80 0.70 0.05 0.05 Cluster members and others will be more aware of the scheme

03. Organizing training programmes /seminars /workshops/ study tours to other clusters/ demonstration of technology/ equipment, including expert fees, travel, lodging, boarding, etc. (Total 5 programmes of Rs.1.00 lakh each)

5.00 3.80 0.80 0.40 Skill upgradation in design, weaving techniques, finishing and packaging etc.

04. Capacity building (exposure visits to Handloom clusters at Imphal).

0.80 0.60 0.00 0.20 Familiarize weavers with other similar cluster

05. Services of BDS providers max 20personmandays Rs 7000 per day and boarding and lodging charges as per Group A officers entitlement

3.00 2.70 0.15 0.15 To provide handhold support by experts to weavers.

06. Miscellaneous developmental costs(translation, publications-lump sum)

1.50 1.20 0.15 0.15 To increase level of publicity through print and electronic media for more exposure

07. In-house institutional Staff: Local Organizer/NDA-13 month Rs.20000 pm

2.60 1.30 0.00 1.30 To engage local organizer to assist in implementation of the project.

08. Local travel in the cluster of the in house staff and Telecommunications expenses (Rs 5000 per month)

0.90 0.90 0.00 0.00 For visit and familiarization

52

Description Total GoI State Govt.

SPV/Pvt. Partner

Outcome

09. Local purchases (computer, telephone, fax-lump sum, year-wise), if required

0.75 0.75 0.00 0.00 For data management and input

10. Participation of CDE/CDA/ cluster official along with entrepreneurs of the cluster. economy/ excursion fair + TA

1.25 1.25 0.00 0.00 exposure visit to trade fairs and exhibitions

Total: 17.40 13.90 1.20 2.30 Proposal for the 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. 17.40 lakh with GoI contribution of Rs. 13.90 lakh, Rs. 1.20 lakh contributed by State Govt. and Rs. 2.30 lakh to be contributed by cluster units/association.

53

Agenda No. 32.8: Proposal for Soft Interventions in Handloom Weaving Cluster, Yumnam Huidrom Makha Leikai, Imphal West, Manipur. (Rectification on Earlier SI Application No. 614 dated 5/8/2012). Proposal was received from Human Resources And Infra Structures Development Organization, Vide Online Ref. No:- 0817 / Dated : 23/10/2012 from Human Resources And Infra Structures Development Organization (Any Other Agency Approved by MSME) & recommended by MSME-DI, Imphal. DSR Details DSR Conducted By : RISDO Consultancy Cell

Validated By : Deptt. of Commerce & Industries, Govt. of Manipur


When Completed : 16/10/2012 Pre-registration Information Name of Applicant : Human Resources And Infra Structures Development

Organization

State : Manipur

District : Imphal West

Cluster Product & Location : Handloom Weaving Products Brief Information of Cluster Main Product : Various handloom items made like chunni, dhoti, shawl etc


Conventional type of Fly Shuttle Looms having no pollution.

Age of Cluster : 8

No. of Units : 27



19.440

Export : (Rs. in Lakhs) Nil.



54


Human Resources And Infra Structures Development Organization, Jupiter Building, Near Old District Hospital, B.T. Road, Imphal - 795 001 , Tel. No. 0385 - 2563455 / 9862599699 (M).


Develop cordial relationship, mutual understanding and sharing knowledge among artisans.

Extent of Competition for cluster

Competition on quality with mass production and marketing.

Main Problems of Cluster : Lack of proper knowledge on technology, marketing and managerial skill etc.

Need for CFC, if any : No

Any other information : Skill up gradation is required. Analysis of Proposal Parameters Proposed by Implementation

Agency (IA) Comments by Cluster Division


The IA has got long experience on MSE and cluster development activities.

Directorate of Commerce & Industries has informed vide its letter dated 4.02.2013 that Commerce & Industry Department, Govt. of Manipur will be funds receiving and Implementing Agency for MSE-CDP.


Skill development on technology, quality, marketing, export and design etc.

OK.


Yes. OK.

Project Cost with break up : (Rs. In lakh)

Project Cost : 20.350 GOI Contribution : 18.180 Cluster Beneficiaries : 2.170

Please see remarks below.


Weavers Service Center, GOI, ICM, AMEA etc.

OK.

Justification for SI Weaving is the main traditional profession having with inborn

-

55



skill to all the weaver artisans in the State.


Sales before intervention was Rs. 19.44 lakh but after intervention will be Rs. 45 lakh; Export before intervention was Rs. nil but after intervention will be Rs.15 lakh; Investment before intervention was Rs. 1.35 lakh only But after intervention targeted to increase to Rs. 7.5 lakh from any sources; Profit before intervention was only Rs. 3.89 lakh but after intervention will be Rs. 11.25 lakh; Employment before intervention was 54 women but after intervention being increased to 60 women.

OK.

Action Plan (for 18 Months) & Budget (Rs in lakh)

Description Total Budget as revised by Cluster Division

GOI Association Outcomes

01. Organizing Meeting, awareness programme

0.20 0.18 0.02 Making cordial relationship, mutual understanding and sharing knowledge among artisans.

02. Formation of Consortium

0.20 0.18 0.02 More convenient in better management and facing in common issues.

03. Building awareness of various schemes of MSME and other Govt. and non-govt. agencies.

0.20 0.18 0.02 More awareness about the various opportunities under the schemes.

04. Skill development on technical, managerial and marketing training.

0.60 0.54 0.06 Development and up-gradation of knowledge input to the artisans.

05. Design development 0.60 0.54 0.06 Engagement of professional Designer for design

56



development. 06. Capacity Building:

(Exposure / visit to other clusters)

0.60 0.48 0.12 More inspiring to artisans from other clusters.

07. Launching web sit &Printing Brochure & publicity:

0.40 0.36 0.04 Connection with global marketing network & Better publicity.

08. Local travels & telecommunication:

0.30 0.27 0.03 Movement and traveling Management staffs, Resource persons and cluster artisans during the project period be convenient.

09. Participation in Foreign Fair:

0.00 0.00 0.00 Introduction of products to foreign countries.

10. Buyer seller meet: 0.20 0.18 0.02 Advantage in direct contact with bulk buyer and dealers.

11. Publication & documentation:

0.10 0.09 0.01 Printing & stationery, documentation of all records and management of cluster office.

12. Project Co-ordination: Engagement of CDA- Engagement of NDA-

2.50 2.20 0.30 All the management activities and look after day to day affairs of the cluster.

13. Purchase of Computer and office equipment:

0.50 0.50 0.00 More advantage in running of the cluster office and maintaining all record as and when required.

Total: 6.40 5.70 0.70 Overall outcome will be the self sustain with good socio-economic growth of the cluster artisans in future.

Proposal for the Steering Committee: Cluster Division recommends the proposal with revised budget as per the turnover of the cluster. Steering Committee may approve the proposal for Soft Interventions in the cluster at a total cost of Rs. 6.40 lakh with GoI contribution of Rs. 5.70 lakh, Rs. 0.70 lakh to be contributed by cluster units/association.

57

Agenda No. 32.9: Proposal for Soft Interventions in Silk weaving Cluster, Utlou Makha Leikai, Bishnupur District, Manipur. (Rectification on Earlier SI Application No. 609 dated 5/8/2012). Proposal was received from Human Resources And Infra Structures Development Organization, Vide Online Ref. No:- 0816 / Dated : 22/10/2012 from Human Resources And Infra Structures Development Organization (Any Other Agency Approved by MSME) & recommended by MSME-DI, Imphal. DSR Details DSR Conducted By : RISDO Consultancy Cell




Organization

State : Manipur

District : Bishnupur

Cluster Product & Location : Silk weaving Products Brief Information of Cluster Main Product : Various handloom items made of silk like chunni, dhoti etc.

Technological details, Pollution angle etc :

Conventional type of Fly Shuttle Loom having no pollution.

Age of Cluster : 12

No. of Units : 39



42.12


Employment (Direct/Indirect) Direct : 78 Indirect : 12

58

: Women : 90 SC/ST : 0


Human Resources And Infra Structures Development Organization, Jupiter Building, Near Old District Hospital, B.T. Road, Imphal - 795 001. Tel. No. 0385-2563455 / 9862599699 (M).


Making cordial relationship, mutual understanding and sharing knowledge among artisans.


Competition on quality with mass production.

Main Problems of Cluster : Lack of appropriate knowledge on technology, marketing and managerial skill etc.


Any other information : Skill up gradation required. Analysis of Proposal Parameters Proposed by Implementation



The IA has got long experience on MSE and cluster development activities.



Skill development on technology. quality, marketing, export and design etc.

Ok.


Yes Ok.


Project Cost :20.350 GOI Contribution :18.180 Cluster Beneficiaries : 2.170




Ok.

59



Justification for SI Weaving is the traditional profession of the Manipuri women community having inborn skills.

-


Sales before intervention was Rs. 42.12 lakh but after intervention will be Rs. 80.00 lakh; Export before intervention was Rs. nil but after intervention will be Rs. 20.00 lakh; Investment before intervention was Rs. 4.68 lakh but after intervention will be Rs. 6.50 lakh; Profitability before intervention was Rs. 8.42 lakh but after intervention is expected about Rs. 16.00 lakh; Employment before intervention was only 78 women but after intervention may be increased to 100 women.

Ok.










04. Skill development on technical, managerial and marketing


60



training. 05. Design development 1.00 0.80 0.20 Engagement of

professional Designer for design development.

06. Capacity Building: (Exposure / visit to other clusters)



0.40 0.36 0.04 Connection with global marketing network &Better publicity.













Proposal for the Steering Committee: Cluster Division recommends the proposal with revised budget as per the turnover of the cluster. Steering Committee may approve the proposal for Soft Interventions in the cluster at a total cost of Rs. 8.30 lakh with GoI contribution of Rs. 7.22 lakh, Rs. 1.08 lakh to be contributed by cluster units/association

61

Agenda No. 32.10: Proposal for Soft Interventions in Handloom Weaving Cluster, Langthabai Lep, Imphal West, Manipur. (Rectification on Earlier Application No. 0617). Proposal was received from Human Resources And Infra Structures Development Organization, Vide Online Ref. No:- 0815 / Dated : 22/10/2012 from Human Resources And Infra Structures Development Organization (Any Other Agency Approved by MSME) & recommended by MSME-DI, Imphal. DSR Details DSR Conducted By : RISDO Consultancy Cell




Organization

State : Manipur


Cluster Product & Location : Weaving, Rectification on Earlier Application No. 0617 Brief Information of Cluster Main Product :

Various handloom items made like chunni, dhoti, shawl etc.


Conventional type of Fly shuttle looms having no pollution

Age of Cluster : 7

No. of Units : 42



40.64


62




Human Resources And Infra Structures Development Organization, Jupiter Building, Near Old District Hospital, B.T. Road, Imphal - 795 001, Tel. No. 0385-2563455 / 9862599699 (M)


Making cordial relationship, mutual understanding and sharing knowledge among artisans.


Competition on quality with mass production.

Main Problems of Cluster : Lack of appropriate knowledge on technology, marketing and managerial skill etc.


Any other information : Skill up gradation required. Analysis of Proposal Parameters Proposed by Implementation



The IA has got long experience on MSE and Cluster Development activities.



Skill Development on Technology, Quality, Marketing, Export and designing etc.

OK.


The DSR has been re-validated by the Deptt. of Commerce & Industries, Govt. of Manipur.

OK.


Project Cost : 20.350 GOI Contribution :18.180 Cluster Beneficiaries : 2.170




Ok.

63



Justification for SI Weaving is the main traditional profession having with inborn skills to all the weavers in Manipur.

Ok.


Sales before intervention was Rs. 40.64 lakh & after intervention expected about Rs.97.50 lakh; Export before intervention was nil but after intervention targeted to Rs. 30.00 lakh; Investment before was only Rs.4.68 lakh but after intervention planning to increase to Rs. 7.50 lakh; Profitability before intervention was only Rs. 8.42 lakh but after intervention expecting about Rs. 24.00 lakh Employment before intervention was only 84 women but after intervention will be 100 women.



GOI AssociationOutcomes







04. Skill development on technical, managerial and marketing training.


05. Design development 1.00 0.80 0.20 Engagement of

64


GOI AssociationOutcomes

professional Designer for design development.

06. Capacity Building: (Exposure / visit to other clusters)



0.40 0.36 0.04 Connection with global marketing network & Better publicity.













Proposal for the Steering Committee: Cluster Division recommends the proposal with revised budget as per the turnover of the cluster. Steering Committee may approve the proposal for Soft Interventions in the cluster at a total cost of Rs. 8.10 lakh with GoI contribution of Rs. 7.02 lakh, Rs. 1.08 lakh to be contributed by cluster units/association.

65

Agenda No. 32.11: Proposal for in-principle approval of upgradation of Takyelpat Industrial Estate, Imphal West, Manipur. Proposal was received from Directorate of Commerce and Industries, Manipur, Vide Online Ref. No:- 0907 / Dated : 19/11/2012 & recommended by MSME-DI, Imphal. Pre-registration Information Name of Organization : Directorate of Commerce and Industries, Manipur

State : Manipur


Industrial Estate : Takyelpat Industrial Estate Basic Information about Proposal:

Particulars Description

Whether appraised DPR with approved layout plan : No

Total Area of industrial estate/ area (acre): 10 acre

Area to be developed (acre) 1.2 acre

Number and sizes of plots to be developed : Not arise

Implementing Period : 2 years

Other ID projects sanctioned in same district: year of sanction, number of plots allotted, units set up, etc. :

No such projects have been sanctioned in the State so far.

Performance of ID projects in state. : Not Arise Details about Proposal: Description Comments By Cluster Div

Implementing Agency (IA): Directorate of Commerce & Industries, Govt. of Manipur

OK

Track Record of the IA Directorate of Commerce & Industries, Govt. of Manipur established the Takyelapt Industrial Estate in the early 1970s. This is the only Industrial Estate in the State and maintained properly by the IA.

---

66

Description Comments By Cluster Div

Appraisal by SIDBI (Observations and recommendations). Attach SIDBI report.

Not yet ---

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)

Common and basic facilities are available within the existing Industrial Estate. The Estate is located in the heart of Imphal city.

---

Whether land is in possession in the name of IA with Clear Title

Yes, enclosed as Annexure D ---

Whether Zoning regulations and non-agricultural conversion etc complied with):

Yes, Complied with. ---

Whether State Level Committee to coordinate and monitor progress has been Constituted :

Yes, enclosed as Annexure E. ---

Whether confirmation received form IA that it will meet the cost in excess of approved project cost and any escalation in cost :

Yes, the IA will meet the cost in excess of approved project cost and any escalation in cost.

---

Basis of elements of project Cost :

Details of project cost ---

Tangible Outcomes of the project

Impact & Benefits ---

Justification of the Proposal Rationale for upgradation of Takyelpat Industrial Estate

---

Proposal for Steering Committee: Cluster Division recommends the proposal. Committee may approve the proposal for ‘In-principle’ approval for upgradation of Takyelpat Industrial Estate, Imphal.

67

Agenda No. 32.12: Proposal for setting up Common Facility Centres in Red Brick Cluster, Barabani, Durgapur, Burdwan, West Bengal. Proposal was received from Barabani Red Brick Cluster Association, Vide Online Ref. No:- 0900 / Dated : 12/11/2012 from Barabani Red Brick Cluster Association (SPV) & recommended by MSME-DI, Kolkata. DSR Details DSR Conducted By : West-Bengal State Govt.

Validated By : Stakeholders along with other dignitaries


1. Basic Information of Cluster Name of Cluster : Burnt Clay Brick

Location of Cluster : Barabani, Durgapur

Main Product : Red Clay brick

No. of Enterprises including break up (Micro, Small, Medium) :

Micro : 70 Small : 0 Medium : 0

Turnover (Rs in Crore) for the last five years :

1st Year : Rs. 44.00, 2nd Year : Rs. 51.00, 3rd Year :Rs. 58.00, 4th Year : Rs. 67.00, 5th Year :Rs. 74.00

Exports(Rs in Crore) for the last five years :

Nil

Employment in Cluster : Direct-3000, Indirect- 300

Technology Details : Detailed in DPR page no-18, 21 & 26

Whether DS Conducted : Yes

Main findings of DSR : Mutual distrust amongst the units in the cluster, Poor infrastructure, manufacturing facilities coupled with use of traditional process leading to low grade products and high process wastage &Threat from high quality, low priced mechanized Products.

Main Problems of Cluster : (a) Lack of improved red bricks manufacturing practices based on modern machinery. (b) For quality and consistency of the product, present brick manufacturing practice is not congenial which leads to high level of wastage. (c) Lack of acquaintance with the modern machinery to augment the productivity of the products to be produced by the units. (d)

68

Lack of modern treatment of clay for quality products. Traditional method without testing leads to high breakage and loss of revenue. (e) Lack of testing & R/D facility of the raw materials as well as the products (f) Lack of availability of transportation facility both for raw material as well as finished products.

Other Information : Nil 2. Information about Proposed CFC Description Proposed by Implementation Agency (IA) Comments by Cluster

Division

(a.) Justification for CFC The major target components of the CFC as elaborated below justify the provisions of the CFC:- A. 1) Training Components: Training of the technical staffs of the CFC will be necessary for the following: (a) Running proposed new mechanical brick manufacturing machinery (b). Repairing of proposed new machineries and vehicles for soil collection and transport. 2) Processing components: a. mechanical clay processing; b. mechanical moulding; c . efficient drying and burning of bricks through improved fuel charging. B. 1) Testing Components: a. Testing quality of raw materials for bricks; b. Testing quality of bricks; 2) R/D Components: a. Selection of best raw material combinations through material research for suggesting new soil sources. b. Arriving at optimum operating conditions of red brick manufacture through research of the involved processing steps; c. Selection of the best and eco-friendly fuel and its burning pattern for quality bricks through Environment-friendly operation; d. Exploring development of indigenous mechanized manufacturing unit for installation of new set up with flexibility and potential of repair, operation and maintenance with locally available skill at reasonably low price. e. Exploring diversification for new products based on market survey and product research. C.1) Business Promotion Components: a. Improvement of shape, size, texture and strength through continuous research for improving marketing potential and viability of

No comments.

69

Description Proposed by Implementation Agency (IA) Comments by Cluster Division

the small scale sector of red brick manufacturing b. Exploring possible diversification of products c. Enhancing user confidence through promotion of guaranteed and tested bricks ensuring quality. 2) Display Center Components: a. Possible diversified products and quality bricks (with full specifications) manufactured under best operating conditions can be displayed with indication of price to allow the users to select the best variety as well as to suggest a new specification so as to suit their requirement including a new application. D. Demonstrative set up: 1) Demonstration set-up should be operated on regular basis to keep it in running conditions while simultaneously imparting training to the manufacturers with production of bricks for commercial sale adding to the economic viability of the CFC. 2) Repairing workshop- repairing job specified a. Minor repairing of the mechanized soil excavation and transport machineries that may include lathe machining, welding, fitting, replacing electrical components. b. Repairing of the modern red brick manufacturing machineries through welding, mechanical fitting, electrical component replacement and electrical circuit maintenance.

(b.) Location of CFC Vill & P.O- Bhanora, P,S- Barabani, Dist- Burdwan, West-Bengal, PIN-713334

---

% age of units in radius of 5km

50 ---


20 ---

(c.) Land for CFC ---

i. Wheather land acquired Yes ---

ii. Title is in name of Barabani Red Brick Cluster Association- SPV ---

iii. Valuation and its basis ADSR- Asansol & CE- Govt. Regd. Valuer. ---

iv. Land is sufficient Yes ---

v. Change of land use Applied for ---

70


vi. If on lease, duration of lease

No ---

vii Whether lease is legally tenable

NA ---

(d.) Total Building area(sq ft)

4340 Sq. Ft. ---

(e.) Rate of construction of building

detailed in DPR- Annexure page no-89 to 93 ---

(f.) Main Facility Proposed A) Trg.-cum- Processing centre,(B)Testing centre with R&D facilities, (C) Business promotion & Product display centre, (D) Mechanical system, (E)Testing of clay/soil, (F) Clay supply under common purchase

---

(g.) Prod capacity of CFC detailed in DPR-page- 15 ---

(h.) Major Outputs/Deliverables of CFC, performance of the cluster after proposed intervention (in terms of production, export/domestic sales and direct/indirect employment, etc.)

detailed in DPR page-12 & 22 A) Improved red bricks manufacturing practices based on modern machinery. B) Products with consistent quality. C) Less wastage in production. D) Minimizing the human drudgery. E) Improvement in quality of products. F) Imparting training to stake holders. G) Ensuring the availability of raw materials in need. H)Availability of transportation facility both for raw material as well as finished products.

Deliverables need to be quantified in % or volume.

(i.) Pollution clearance required or not

Yes ---

(j.) Man Power in CFC --- No. of persons in the proposed CFC is required to be mentioned.

(k.) Revenue generation mechanism for sustainability of assets(service/user charges to be levied, any other-to be specified)

Detailed in DPR Page no- 15 & 16 OK.

71

3. Information about SPV Description Proposed by Implementation Agency (IA) Comments by

Cluster Division

(a.) Name and Address Barabani Red Brick Cluster Association Vill & P.O- Bhanora, P,S- Barabani, Dist- Burdwan, West Bengal, PIN-713334.

No comments.

(b.) Nature of SPV(company or Society or Trust)

Section-25 of the Companies Act- 1956 ---

(c.) Name of the state Govt. and MSME officials in SPV

Dy. Director of M&SSE(Anc.),sub-DIC, Durgapur

---

(d.) Date of formation of SPV 24/02/2010 ---

(e.) Number of Members 50 ---

(f.) Bye Laws or MA and AOA submitted

Submitted ---

(g.) Authorized Share Capital Rs. 100 lakh ---

(h.) Paid up capital as on............ Rs. 2 lakh ---

(i.) Shareholding Pattern Enclosed ---

(j.) Commitment letter for contribution

Submitted ---

(k.) SPV specific A/c A/C No- 31894379555 of SBI, Domahani, Barabani, Burdwan

---

(l.) Trust Building of SPV, Previous track record of co-operative initiatives pursued by SPV members need to be highlighted with support documentation

SPV has been constituted & registered under the name & style- Barabani Red Brick Cluster Association- A Section-25 Co. and they are engaged in joint programme under approved S/I executed in coordination with Sub-District Industries Centre, Durgapur, Directorate of Micro & Small Scale Enterprises & the TA, NIT, Durgapur. They have successfully completed exposure visit to CBRI, Roorkee, Yamnanagar Haryana, Derabasi, Chandigarh., Aurangabab, Maharastra, Coimbatore, Tamilnadu & Udaipur, Rajasthan and identified the technology for up-gradation of their cluster. They have jointly participated in the Training Programme under NIT schedule. They also participated actively in

---

72


preparation of the project of CFC.

(m.) Technical Institution National Institute of Technology, Durgapur ---

(n.) CFC may be tilize by SPV members as also others in a cluster.However, evidence should be furnished with regard to SPV member ability to tilize at least 60 percent of installed capacity.

Enclosed letter of SPV ---

(o.)

(a) Power requirement for commercial/domestic purpose

Rs. 122.61 lakh ---

(b) Water Rs 2000.00 ---

(c) Gas/Oil/Other Utilities Negligible --- 4. Implement Arrangements Description Proposed by Implementation Agency

(IA) Comments by Cluster Division

(a.) Implementing Agency West Bengal state Export Promotion Society (WBSEPS), Kolkata

An undertaking of Govt. of West Bengal as per guidelines.

(b.) Fund receiving Agency West Bengal state Export Promotion Society (WBSEPS), Kolkata

---

(c.) Implementation Period 16 months It should be 24 months

(d.) Appraisal of DPR and main Recommendations

Applied to SIDBI, Kolkata SIDBI Appraisal report is awaited.

(e.) Comments of Technical Division

NA Comments awaited.

(f.) Approval of Technical Committee

NA Yet to be approved.

(g.) Comments of Cluster Development Division:

NA ---

(h.) Working capital(In- Letter of SPV attached with DPR page ---

73

Description Proposed by Implementation Agency (IA)


principle sanction of loan from a bank, if applicable arrangement made)

no- 116

5. Financial Analysis of CFC Description Proposed by Implementation


(a.) BEP 39.34% The financial ratios will be examined as per appraisal report from SIDBI.

(b.) IRR, Payback period 29% -Do-

(c.) DSCR NA -Do-

(d.) Return on Capital employed (ROCE)

28.46% -Do-

(e.) NPV Positive, Rs. 439.87 lakhs -Do-

(f.) DER NA -Do-

(g.) Sensitivity Analysis Positive -Do-

(h.) Status of CFCs approved in the State

NA

6. Total Cost : The total cost of the CFC is as follow: Particulars Total Cost (Rs. in

Lakh)

(1.) Land and its Development 4.35

(2.) Building and other Civil Constructions 37.63

(3.) Plant & Machinery(including electrification) 406.88

(4.) Misc. fixed assets 5.10

(5.) Preliminary & Pre-operative expenses, maximum 2% of project cost 10.00

(6.) Contingency (2% building and 5% on plant and machinery) 20.03

(7.) Margin money for Working Capital 3.98

Total Project Cost 487.97

74

7. Means of Finance : The suggested means of finance are as follows: Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 10.00 48.80 (2.) Grant-in-aid from Govt. of India 83.00 405.01 (3.) Grant-in-aid from Govt. of West Bengal 7.00 34.16 (4.) Bank Loan/others 0.00 0.00 Total 100.00 487.97 8. Plant and machinery (with Brief Specification) S.No. Description No. Power

Requirement(HP/KW) Cost

1. Semi Automatic Clay Bricks Machine with Hydraulic Cutting table & M. S. Tray

1 60 HP 1400000.000

2. JCB JS-81 Tracked Excavator Fitted With.Koel 4R 1040 76 hp @ 2200 RPM.

8 NA 18656000.000

3. JCB 3DX Backhoe Loader Excavatorfitted with Heavy Duty Tyres, Engine 76 hp @ 2200 RPM

8 NA 15880000.000

4. Lethe machine 2 10 HP 260000.000

5. Welding Machine 2 1 HP 42000.000

6. Misc. Tools 1 NA 25000.000

7. S.Tax/Insurance/Transport Cost @6.33%

1 NA 2295000.000

Total 0 0 38558000.000

Shortcomings: (i) SIDBI appraisal is pending. The ‘in-principle approval is subject to following: (i) Approval of proposal by Technical Committee (ii) Compliance of project proposal as per MSE-CDP guidelines / SIDBI appraisal. Proposal for Steering Committee: Cluster Division recommends the proposal for ‘in-principle’ approval so that complete proposal as per guidelines. Steering Committee may consider the proposal for ‘in-principle’ to set up of Common Facility Centre (CFC) in Burnt Clay Brick, Barabani, Du rgapur, Burdwan, West Bengal.

75

Agenda No. 32.13: Proposal for in- principle approval to set up Common Facility Centres in Plastic Processing Cluster, Dabgram, Rajganj, Jalpaiguri, West Bengal. Proposal was received from DIC, Jalpaiguri, Vide Online Ref. No:- 0902 / Dated : 15/11/2012 from DIC Jalpaiguri (State Government) & recommended by MSME-DI, Kolkata. DSR Details

DSR Conducted By : DIC Jalpaiguri

Validated By : Association - North Bengal Plastic Manufacturing & Dealers Welfare Society


When Completed : 20/04/2007 1. Basic Information of Cluster Name of Cluster : Rajganj Plastic Processing Cluster

Location of Cluster : Dabgram, Rajganj

Main Product : HDPE Pipes, PET Bottles and Containers, Plastic Blown Film, Plastic Tanks, Printed Plastic Packaging Material, PVC Pipes, Repairs & Maintenance, Waste Plastic Recycling



Turnover(Rs in Crore) for the last five years : 1st Year : 80.00 2nd Year : 85.00 3rd Year : 91.00 4th Year : 97.00 5th Year : 105.00

DPR/Annexure Page No.:

21 of DPR

Exports(Rs in Crore) for the last five years : Nil


Employment in Cluster : 2000 DPR/Annexure Page No.:

20 of DPR

Technology Details : Extrusion, Extrusion Blow Moulding, Injection Moulding, Roto-Moulding, Flexo & Roto Printing


17 of DPR

Whether DS Conducted : Yes DPR/Annexure Page 7 of

76

No.: DPR

Main findings of DSR : Absence of Engineering Workshop, Tool Room, Testing Facilities etc.


24 of DPR

Main Problems of Cluster : Absence of Engineering Workshop, Tool Room, Testing Facilities etc.


24 of DPR

Other Information : Huge loss due to production down time because of lack of proper workshop / tool room facilities


28 of DPR

2. Information about Proposed CFC Description Proposed by Implementation Agency


(a.) Justification for CFC The nearest similar facility is about 600 kms away.

---

(b.) Location of CFC Vill. Chetragach, P.O. Satelite Township, P.S. Bhaktinagar, Mouza Dabgram, Block Rajganj, Dist. Jalpaiguri, W.B.

---


90 ---


125 ---

(c.) Land for CFC

i. Wheather land acquired Yes Land is measuring 0.439 acres.

ii. Title is in name of SPV Title is in the name of Jalpaiguri Siliguri Plastic Engineering Centre.

iii. Valuation and its basis 24.05 lakhs approx As per actual cost plus conveyancing expenses

OK.

iv. Land is sufficient Yes ---

v. Change of land use In process ---


Not Applicable ---

77




Not Applicable ---

(d.) Total Building area(sq ft) 5800 sqft workshop area 1000 sqft x 2 Adm. block, Conference cum training centre etc.

---


Approx Rs. 586 per sqft. ---

(f.) Main Facility Proposed PLC Controlled Screw milling lathe, Precission Lathe, Honing, Milling, Radial Drill, Hard Chroming, Gas nitrating, Rubberising, Cutting, Welding, Product Testing etc.

---

(g.) Prod capacity of CFC 2400 Engineering hours ---

(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, .)

Savings in maintenance cost Rs. 32.05 lakhs p.a. Savings in Transport cost Rs. 56.00 lakhs p.a. Savings due to reduced down time Rs. 262.50 lakhs p.a. Savings due to increased productivity Rs. 787.50 lakhs p.a. Savings due to Quality improvement Rs. 157.50 lakhs p.a.

---


Required ---

(j.) Man Power in CFC 50 at full capacity ---


Rs. 222.61 lakhs at full capacity ---

(l.) At 100% utilisation surplus Rs. 98.96 lakhs 1st year surplus Rs. 75.84 lakhs

---

3. Information about SPV



(a.) Name and Address Jalpaiguri Siliguri Plastic Engineering Centre

---

78




Company registered u/s 25 Incorporate on 29.12.2010


GM DIC Jalpaiguri,by order of Dept. of MSSE & T, Govt. of West Bengal

---

(d.) Date of formation of SPV 29-12-2010 ---

(e.) Number of Members 33 31 nos. mentioned in SIDBI Appraisal report. 33 as per DPR (p-169-171)


Yes ---

(g.) Authorized Share Capital Rs. 1.50 Crores ---

(h.) Paid up capital as on............ Rs. 40.35 lakhs List available.

(i.) Shareholding Pattern List of Percentage holding enclosed List available.


Major Contribution received upfront. For the balance members have given an undertaking to contribute as and when called upon to do so.

OK.

(k.) SPV specific A/c Vijaya Bank, Sevoke Road, Siliguri, Current A/c. No. 720700301000274

OK.


Various trust building activities conducted by the parent organisation name North Bengal Plastic Manufacturing and Dealers Welfare Society, including the following: Liasion activity with various govt. departments Waste Management Project jointly with Siliguri Municipal Corporation. Various Soft Intervention Activities jointly with DIC Jalpaiguri

---

(m.) Technical Institution CQMS, Mechanical Engineering Department, Jadavpur University, Kolkata

---

(n.) CFC may be utilised by SPV members as also others in a cluster.However, evidence should be furnished with regard

Declaration by SPV Directors Ok.

79



to SPV member ability to utilise at least 60 percent of installed capacity.

(o.)


126.88 Kw ---

(b) Water To be met by drawing underground water by deep tube well

---

(c) Gas/Oil/Other Utilities Will be arranged locally --- 4. Implement Arrangements Description Proposed by Implementation


(a.) Implementing Agency West Bengal State Export Promotion Agency

OK

(b.) Fund receiving Agency

West Bengal State Export Promotion Agency

OK

(c.) Implementation Period

15 months from date of receipt of 1st disbursement

Implementation period will be 2 years.


Appraised by SIDBI Recommended by District Level Advisory Committee, Jalpaiguri, W.B.

SIDBI has appraised the DPR and recommended that CFC is well intendent as a strategy for enhancing productivity and competitiveness of plastic processing units in the area.


The total cost of project is Rs. 391.61 lakh and cost of plant and machinery is Rs. 240.66 lakh. The proposed tooling facilities will enhance the production capacity by reducing break time. Keeping in view the nature of units and its location, ME Division recommends the machines and equipments mentioned in the proposal for setting up of CFC in the cluster.

80




Considered by Technical Committee in its meeting held on 05.03.13. Minutes are yet to be approved.


Considering the backwardness of industry in North Bengal CFC is highly recommended for industrial development in this region

The soft interventions in the cluster were approved under MSE-CDP and taken up by State Govt. with the help of DIC, Jalpaiguri.

(h.) Working capital(In-principle sanction of loan from a bank, if applicable arrangement made)

In principle sanction from Vijaya bank, Siliguri, if required (Refer Page No: 137)

OK

5. Financial Analysis of CFC

DPR/Annexure Page No. 51 of DPR



(a.) BEP 31.51% (Refer Page No: 68 of DPR) OK

(b.) IRR, Payback period 21.18%(Refer Page No: 69 of DPR) 14.31% Before tax.

(c.) DSCR Not Applicable since there is no Term Loan Component

OK


25.29% (Refer Page No: 71 of DPR) As per DPR (P-71) ROCE is 19.22% after tax.

(e.) NPV 74.07 Lakhs (Refer Page No: 69 of DPR) OK

(f.) DER Not applicable since there is no debt component

OK

(g.) Sensitivity Analysis Project is cash positive under all scenarios as detailed in page 70 of DPR

OK


8 CFC's approved, 1 already operational and other 7 under implementation

---

81

6. Total Cost : The total cost of the CFC is as follow: Particulars Total Cost (Rs. in Lakh)





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

20.00

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

12.94


Total Project Cost 391.61 7. Means of Finance : The suggested means of finance are as follows:

Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 14.56 57.02 (2.) Grant-in-aid from Govt. of India 70.99 278.02 (3.) Grant-in-aid from Govt. of 14.45 56.57 (4.) Bank Loan/others 0.00 0.00 Total 100.00 391.61 8. Plant and machinery (with Brief Specification) S.No. Description No. Power Requirement(HP/KW) Cost 1. Centre Lathe 4000 MM ABC 1 5.625 9.240

2. Centre Lathe 2500 MM ABC With grinding Attachment

1 3 6.450

3. Centre Lathe 2500 MM ABC Heavy Duty

1 2.5 6.270

4. precision lathe 2000 MM ABC 1 2.5 10.010

5. PLC Controlled Screw Turning Lathe

1 3 21.000

6. Universal Milling Machine 1 3 2.190

82

S.No. Description No. Power Requirement(HP/KW) Cost 7. Cylindrical grinder 1 3 5.150 8. Surface Grinder 36'x16' 1 5 3.910

9. Shaping Machine 24' Stroke 1 2.5 2.540

10. Honing Machine 2500 MM x 150MM

1 3 39.000

11. Specialized Blade Sharpening Machine

1 2 1.500

12. Radial Drill 1 3 1.210

13. Salt Bath 1 0 6.360

14. Gas Nitriding Plant 1 60 28.200

15. Hard Chrome Plating & Polishing

1 8 16.620

16. Rubberising unit 1 2 17.500

17. Bench Drill 25 MM 1 1 0.610

18. Pillar Drill 40 MM 1 2 1.120

19. Tool & Cutter Grinder 1 2 5.290

20. Portable Angle Grinder 1 0.5 0.190

21. Flexible Shaft Grinder 1 1 0.210

22. Portable Drill 1 0.25 0.050

23. Bench Grinder 1 2 0.180

24. Welding / Gas Cutting Set 1 3 0.450

25. Power Saw 1 2 0.670

26. Electric Hoist 2 MT 1 3 0.350

27. Testing Machines 1 2 14.500

28. Measuring & Other Hand Tools

1 0 8.500

83

S.No. Description No. Power Requirement(HP/KW) Cost Sub Total 209.27

29. Insurance , Freight etc. (5% towards CST/VAT)

10.46

30 Electrification, installation and Commissioning (10%)

20.93

Grand Total 240.66

Proposal for Steering Committee: Cluster Division recommends the proposal for in-principle approval for pending approval of Technical Committee. Steering Committee may approve the proposal for in-principle approval for setting up of Common Facility Centre (CFC) in Plastic Processing Cluster, Dabgram, Rajganj, Jalpaiguri, West Bengal.

84

Agenda No. 32.14: Extension of duration of Up-gradation ID centre at Udayan Industrial Estate, Kolkata. It is informed that the project was granted approval in 23rd meeting of Steering Committee of MSE-CDP held on 23.8.10. Administrative approval (final) for the project was issued on 4.10.10. The duration of completion of project was mentioned as 18 months which stands completed by April 2012. The total cost of project is Rs 599.64 lakh in which GoI share is Rs. 359.78 lakh and State government share is Rs. 239.86. 2. The present status of the project is submitted as follows:-

S. No Item Details 1 Approved in SCM 23rd SCM held on 23.8.10 2 Final approval dated 4.10.10 3 Duration of project 18 months and completed by 30.4.12 4 Total cost of project

GoI contribution State Govt. contribution

Rs. 599.64 lakh Rs. 359.78 lakh Rs. 239.86 lakh

5 Funds released so far GoI contribution State Govt. contribution

Rs. 60.00 lakh Rs. 205.78 lakh (on 22.2.11 and 13.4.12 )

6 Expenditure so far Rs. 210.14 lakh 3. The progress of work submitted by WBNIDC is as follows:-

S. No.

Item Approved Project Cost

Amount incurred by the IA

Progress of work

1. Cost of land filling/leveling including boundary wall / fencing

85.03 85.00 Work completed

2. Cost of laying Roads 186.28 0.00 Work order issued but work could not be started due to non implementation of the drainage work.

3. Road side greenery and social forestry

9.71 0.00 Work order issued but work could not be started due to non implementation of the drainage work.

4. Water Supply 84.44 68.80 Work in progress. 5. Drainage 45.65 0.97 Work order issued recently

and is in progress 6. Power 81.06 5.75 Work order issued recently

and is in progress 7. Administrative and

other service complex 90.00 49.62 Work order issued recently

and is in progress.

85

S. No.

Item Approved Project Cost

Amount incurred by the IA

Progress of work

Structural work almost completed.

8. Contingencies and other preoperative exp.

17.47 0.00 WEBCON engaged for consultancy services.

Total 599.64 210.14 4. There has been delay in implementation of project by WBNIDC (IA) and as informed by WBNIDC, Kolkata the delay was on account of unsuccessful tender for the drainage work and for that reason the execution of road work, road side greenery etc., could not be started. The work order for drainage has now been issued and project is expected to be completed by June 2013 with timely availability of funds. 5. WBNIDC (IA) while enclosing the progress report as above has requested vide its letter dated 31.12.12 to grant extension up to 30.6.2013 for completion of remaining activities. However, since the remaining GoI funds of Rs. 299.78 lakh could be considered for release in two instalments, it is considered necessary to grant extension of project up to 30th September 2013. Proposal for Steering Committee: Steering Committee is requested to grant extension of duration of project up to 30th September 2013.

86

Agenda No. 32.15: Extension of duration of project for setting up of CFC in Re-rolling Mill Cluster, Howrah. Proposal for setting up of CFC in the above cluster was approved in the 23rd meeting of Steering Committee of MSE-CDP held on 23.8.10. Administrative Approval for the project was issued on 19.10.10. Project is implemented by West Bengal State Export Promotion Society (WBSEPS), Govt. of West Bengal. The project cost and means of finance are as follows: Means of finance:

Description Amount GoI Assistance Rs. 1,050.00 lakh (67.47%) State Govt. Rs. 300.00 lakh (19.28%) SPV Rs. 206.31 lakh (13.25%) Total Project Cost Rs. 1556.31 lakh

Component of Cost: S. N. Item Amount (Rs. in Lakh) 1. Land and site development (@ of Rs. 3 lakh per bigha as cost and site

development @ Rs 3 lakh per bigha for total 15 bighas) 90.00

2. Building and civil works 271.00 3. Plant & Machinery 1058.28 4. Miscellaneous fixed assets(furniture, fixtures, fire fighting

equipment, first aid equipment, backup power supply) 10.00

5. Preliminary expenses 15.00 6. Pre-operative expenses 25.00 7. Provisions for contingencies (2% on building and 5% on plant &

machinery) 55.81

8. Margin money for Working Capital 31.22 Total 1556.31

2. As per the Administrative Approval issued on 19.10.10 the duration of project is completed in October 2012, however, the project is not yet completed. The present status of project is submitted as follows:

(i) Release of SPV contribution – Released and utilized for infrastructure facilities. (ii) Release of State Govt. contribution- Released and being utilized for infrastructure facilities. (iii) (GoI funds – Rs. 315.00 lakh released as 1st instalment for advance payment to machinery

suppliers. WBSEPS, Kolkata has submitted expenditure statement and utilization certificate for Rs. 315.00 lakh.

(iv) The delay in implementation is due to delay in finalization of tender for buildings, plant and machinery etc.

87

3. Directorate of MSSE, Govt. of West Bengal vide its letter dated 14.02.2013 and also SPV in the cluster has requested for extension of duration of project upto March 2014. Since, GoI funds under the project amounting to Rs. 7.35 crore is yet to be released and may be considered in two installments, the request for extension of duration of project upto March 2014 as recommended by State Govt. appears to be justified. 4 Proposal for Steering Committee: Steering Committee may kindly grant extension of time for implementation of the project for the duration up to 31st March 2014 as requested by State Government/SPV.

88

Agenda No. 32.16: Proposal for Soft Interventions of Foundry Cluster, Agra, Uttar Pradesh. Proposal was received from Process and Product Development Centre Agra, Vide Online Ref. No:- 0675 / Dated : 07/09/2012 from process and Product Development Centre Agra (Central Government) & recommended by MSME-DI, Agra. DSR Details DSR Conducted By : PPDC Agra

Validated By : MSME DI Agra


When Completed : 10/07/2011 Pre-registration Information Name of Applicant : Process and Product Development Centre Agra

State : Uttar Pradesh

District : Agra

Cluster Product & Location : Foundry Cluster, Agra Brief Information of Cluster Main Product : CI Castings, S G Iron Castings, Steel Castings


Cluster is using old & obsolete technology which is energy intensive & pollution prone.

Age of Cluster : 80

No. of Units : 160



20000.000


Employment (Direct/Indirect) : Direct : 50000 Indirect : 10000 Women : 50 SC/ST : 1000


Mr Amar Mittal, President Agra Iron Founders Association

89

North Vijay Nagar Colony Agra (UP)Tel 0562-


i)Trust Building among Cluster actors for successful implementation of soft & Hard Intervention ii) Smoothening of activities and role defining for soft and hard intervention implementation

Extent of Competition for cluster : Cluster is facing tough competition from nearby foundry clusters of Faridabad & Jaipur

Main Problems of Cluster : 1.Manufacturing Technology is conventional& old, needs upgradation. 2.Scarcity of skilled manpower, needs continuous skill development & upgradation. 3.No exposure on modern technology & equipment, needs exposure visits in advanced clusters. 4.No awareness of quality & process control parameters. 5.Absence of modern tool room for pattern & dies making. 6.Castings produced in the cluster having low profit margin needs value

Need for CFC, if any : Yes

Any other information : Because of Taj, Supreme court has banned setting up of new foundries or capacity expansion of existing units.





Process & Product Development Centre Agra,(MSME Technology Development Centre for Casting & Forging)is specialized institute on Foundry & did many cluster development projects in Ludhiana Foundry Cluster, Karnal & Moga Agri. parts mfg. cluster, Brass/bronze metal utensils cluster Pareo, Gun cluster Munger etc.

No comments.


Trust building, technology upgradation, Implementation of QMS, Market development, Export, Design Improvement, Exposure visits to technically advanced clusters in

---

90



India & abroad, capacity building ,website launching, purchase of technical books, office equipments etc.


Yes ---



---


Process & Product Development Centre Agra,(MSME Technology Development Centre for Casting & Forging)is specialized institute on Foundry & did many cluster development projects in Ludhiana Foundry Cluster, Karnal & Moga agri. parts mfg. cluster, Brass/bronze metal utensils cluster Pareo, Gun cluster Munger etc.

---

Justification for SI To increase core competence & strength of cluster for sustenance & growth to become globally competitive, undertaking Soft Interventions is necessary .

---


1.Increase in employment by 5% 2.Increase in annual production by 10%. 3.Increase in capacity utilization by 20%. 4.Energy Saving by 10%. 5.Increase in value addition/profit margin by 5 to 10%. 6. Increase in domestic & export market by 10%. 7.ISO & other certification from 20% to 50%

---

91


Description Total GOI Association Outcomes 01. Trust Building (4

Meetings) 0.800 0.700 0.100 i)Trust Building among Cluster

actors for successful implementation of soft & Hard Intervention ii) Smoothening of activities and role defining for soft and hard intervention implementation

02. Awareness on various Govt. Schemes (2 Programmes )

0.800 0.700 0.100 i)Improvements in all spheres of business with implementation of Govt. Schemes and proper utilization of available schemes to improve quality, productivity & profit.

03. Participation in Foreign Fair in advanced Countries

5.000 2.500 2.500 i)Business generation and exposure to latest technologies & Equipment in Foundry field and make the foundry units upgrade their quality and costing to National /International level

04. Capacity Building (Brochure Preparation, Website Launching & Exposure visit to Advanced Foundry Cluster

1.000 0.600 0.400 i)Exposure to Advanced Technology & Equipmentsii) Publicity for meeting iii) Marketing support/ Business Generation

05. Technology up gradation- (6 Programmes )

6.000 4.800 1.200 i)Knowledge & Skill Up gradation. ii) Enhanced Productivity & reduce rejections. iii) Latest development in Foundry Industry .

06. In- house institutional staff (CDA/local organiser)

4.500 2.250 2.250 To interact seamlessly and timely on day to day basis with various Cluster actors and Govt. /Non-Govt. Agencies /BDS to smoothly run the soft intervention programme. Record keeping of the activities of Cluster

07. Participation of CDE/CDA/Cluster Official along with entrepreneurs of Cluster

1.250 1.250 0.000 i)Enhanced exposure of CDE/CDA & other Clusters Officials would help them to implement Cluster Development

92

Description Total GOI Association Outcomes Programme smoothly & expeditiously.

08. Local travel in the cluster

0.900 0.900 0.000 Frequent travelling needed by CDA/SPV & other Cluster actors to run the activities.

09. Local purchase of computers, LCD projector atc

0.750 0.750 0.000 For day to day office work &communication with Cluster

Total: 21.00 14.45 6.55 Overall increase in core competence of entrepreneurs to become globally competitive for sustenance & growth of cluster.

Proposal for the 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. 21.00 lakh with GoI contribution of Rs. 14.45 lakh, Rs. 6.55 lakh to be contributed by cluster units /association.

93

Agenda No. 32.17: Proposal for Soft Interventions in Patch Work Cluster, Rampur, Uttar Pradesh is dropped for review.

94

Agenda No. 32.18: Proposal for Soft Interventions in Pharmaceuticals, Kanpur Nagar, Uttar Pradesh. Proposal was received from Kanpur, Vide Online Ref. No:- 0541 / Dated : 02/07/2012 from Kanpur (Central Government) & recommended by MSME-DI, Kanpur. DSR Details DSR Conducted By : MSME-DI Kanpur

Validated By : MSME-DI Kanpur , Kanpur Pharma Association Pre-registration Information Name of Applicant : MSME-DI, Kanpur


District : Kanpur(Nagar)

Cluster Product & Location : Pharmaceuticals, Kanpur Nagar Brief Information of Cluster Main Product : Capsules, Eye drops, Liquids, Ointments, Tablets


Majority of the units are using old/ traditional manufacturing technology.

Age of Cluster : 40

No. of Units : 75



12000.00





Association Name : Pharmaceutical Manufacturers Association Kanpur Contact person : Shri Kewal Kumar Gulati (Gen. Secretary) Address : C/O Jyoti Capsules, 123/37 Saresh Bagh Kanpur Telephone No. : 0512- 2236423 Fax No. : 0512-2217051, Mobile : 9839035102, 9336103550

95


--

Extent of Competition for cluster : MSMEs of the Ahmedabad Pharmaceuticals Cluster in Gujarat are considered as a benchmark in parameters like technology, support institutions, BDS provision, etc

Main Problems of Cluster : Financial Assistance, Common Facility Lab

Need for CFC, if any : yes Common facility Lab

Any other information : DSR hard copy, soft copy submitted to DC MSME New Delhi Analysis of Proposal Parameters Proposed by Implementation



MSME-DI, Kanpur Ok.


Workshop on marketing, finance and technology upgradation etc., exposure visit, capacity building etc.,

OK.


Yes


Project Cost : 11.95 GOI Contribution : 8.43 Cluster Beneficiaries: 3.52

OK.


yes Professional Name of technical agency may be mentioned.

Justification for SI Create awareness & Strengthen cluster for quality upgradation cost reduction & Productivity etc

---


sales-120 to 150 Crores Exports 10 to 15 Crore Investment50 to 70 Crore Profitability,10-15 Crore Employment,1500-2000 ISO & other Certification, others 5-10

---

96


Description Total GOI Association Outcomes 01. 1Seminar on

trust building 0.300 0.270 0.030 It will create trust among the

Cluster Actors 02. awareness of various Govt.

schemes & Institutional support Schedule M,GMP,IPR,ERP

0.300 0.270 0.030 At least 20 number of units will have direct benefits of our schemes such as ISO 9001, Bar Coding, CLCSS and various components of NMCP.

03. 02Workshop on MDP(Mkt, Fin, Logistic, HRD, Export Mkt & Packaging

0.600 0.540 0.060 Familiarization of latest information and implementation of managerial aspects in business

04. Study Tours to Other Cluster as per requirement

1.000 0.800 0.200 MSEs will compare the technology and otherbusiness environment

05. Brochure Preparation, initial requirement cost

0.250 0.150 0.100 Support in goodwill and could be use as publicity/marketing tools

06. Website 0.750 0.450 0.300 Support in goodwill and could be use as publicity/marketing tools

07. Providing Services of BDS providers all concern consultants

3.000 2.700 0.300 To create awareness & Support SMEs to utilize services ofBDS Providers

08. Participation in one foreign fair

5.000 2.500 2.500 SMEs will acquainted with present pharma scenario

09. Local purchases (computer, telephone, fax-lump sum, year-wise), if required

0.750 0.750 0.000 Data compilation and internet based support will be more effective

Total: 11.95 8.43 3.52 Strengthen cluster activities, Quality upgradation cost reduction and increase productivity

Proposal for the 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. 11.95 lakh with GoI contribution of Rs. 8.43 lakh, Rs. 3.52 lakh to be contributed by cluster units/association.

97

Agenda No. 32.19: Proposal for conducting Diagnostic Study Report (DSR) of Leather Footwear Cluster, Saharanpur District, Uttar Pradesh. Proposal was received from MSME- Technology Development Centre(CFTI), Agra, Vide Online Ref. No:- 1061 / Dated : 07/01/2013 from MSME- Technology Development Centre(CFTI), Agra (Central Government) & recommended by MSME-DI, Agra. Pre-registration Information Name of Organization : MSME- Technology Development Centre(CFTI), Agra


District : Saharanpur

Cluster Name & Location : Leather Footwear Cluster, Throughout Saharanpur District Brief Information of Cluster Main Product : Footwear


The footwear manufactured in this cluster is of different types for gents, ladies, and children. Various upper, bottom materials and grinderies are used. Mostly the products are being manufactured with the help of very limited machinery & equipment in a traditional way and stuck-on process is followed to attach the soles.


No. of Units : 1550

Profiles of Units/Category :

Micro : 1550, Small : 0, Medium : 0

Women : 10, Village : 250, SC/ST : 1300


115.000



Direct : 25000, Indirect : 5000

Women : 500, SC/ST : 20000


Saharanpur Footwear Manufacturers Association Budh vihar Marg, Jathav Nagar, Saharanpur, UP-247001. Tel- 0132-2640087, E. Mail- [email protected] President- Shri Rajeswar Chaudhury- 9259898780

98

Gen. Secretary- Shri Susil Aanand-9045000087

Main Problems of Cluster : Capacity Building, Marketing, Quality, Availability of fund, skill of manpower . Raw material availability.

Any other information : This is a hundred year old traditional cluster and more than 80% entrepreneurs belongs SC categories and the people of the weaker section of the society are associated with it. They are self motivated, hard working and enterprising in nature. Due to lack of awareness, financial strength and inadequate support & coordination, the progress is not remarkable. However there is an ample scope of improvement in an integral manner through cluster approach.



MSME- Technology Development Centre (Central Footwear Training Institute), Agra is a Govt. of India Society functioning under the aegis of Ministry of MSME, Govt. of India, being involved in human resource development for footwear and allied industry through imparting various training programmes on Footwear Designing & Manufacturing Technology. It has also been conducting outreach training programmes for the skill development of the footwear artisans at different footwear clusters in the country. In recent past, the Institute has been in associated with the Footwear Cluster at Patna, Saharanpur, Jodhpur, Jaipur, Satna and has conducted many training programmes.

Project Cost with break up Rs.2.50 Lakh ( Includes expenses for visits, Data collection &compilation, Hiring consultants, seeking assistance from cluster experts, Diagnostic study report preparation, validation of action plans, Printing & stationery and final report submission.)


The proposed implementing agency (CFTI), Agra, is itself a technical & educational institute having expertise in technology and its application in the industry. It will play an active role in technical interventions.

Justification for DSR The footwear industry is having its own significance in socio- economic development of the country and most of the units are micro enterprises functioning in clusters. The proposed cluster is one of the oldest clusters and available in a good number at Saharanpur. The units are almost homogenous in nature and are having common problems and prospects and there is an excellent scope of growth by addressing the issues in an integrated way. In

99

order to understand the techno- commercial status of the cluster, SWOT analysis, identification of the constraints & scope of improvement and to draw the action plan Diagnostic study is very much purposeful and needs to be carried out diligently.

Outcomes of conducting DSR Outcomes: Through the diagnostic study, the issues concerned to be cluster will be highlighted, Action plan will be drawn for both soft & hard interventions and it will present a roadmap for a visible growth & development with an objective to enhance their productivity, competitiveness and sustainability.

Proposal for Steering Committee : Steering Committee may approve the proposal for conducting DSR in the cluster by MSME- Technology Development Centre (Central Footwear Training Institute), Agra at a cost of Rs 2.50 lakh

Amount Recommended : (Rs. in Lakhs)

Rs. 2.50 lakh

Proposal for the Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting diagnostic study in the cluster by MSME- Technology Development Centre (CFTI), Agra at a total cost of Rs. 2.50 lakh to be made available as GoI contribution.

100

Agenda No.32.20 Proposal for conducting Diagnostic Study Report (DSR) of Fortified Wheat Flour Cluster, Aligarh, Uttar Pradesh.

Proposal was received from DIC Aligarh, Vide Online Ref. No:- 0838 / Dated : 03/11/2012 from DIC ALIGARH (State Government) & recommended by MSME-DI, Agra.

Details of the proposal are as under:

Pre-registration Information

Name of Organization : DIC, ALIGARH


District : Aligarh

Cluster Name & Location : Fortified Wheat Flour, Aligarh Brief Information of Cluster

Main Product : Wheat flour fortification & Fortified wheat fl


Flour Milling Industry are using old Technology, No any Flour Mill are Producing Fortified Wheat Flour.

Age of Cluster : 25

No. of Units : 150

Profiles of Units/Category :

Micro : 145, Small : 5, Medium : 0

Women : 5, Village : 100, SC/ST : 45


15000.000



Direct : 1500, Indirect : 2000

Women : 500, SC/ST : 1000


M/s Wheat Flour Fortification Udyogik Utpadn Sahkari Samiti Ltd. Dhuri Nagar, Hardaspur, Khair Road Aligarh

Main Problems of Cluster : 1. Flour Milling Industry not yet Started Fortification for Open Market. 2.No Sustainable Mechanism to Introduce Fortification in Small

101

Chakkimills Operating in Villages. 3.Govt. of India or State Govt. to Enforce Mandatory Fortification 4. Incorporate Wheat Flour Fortification in National Food Laws and Regulations.

Any other information : For More Detail We Attached Detail Proposal. Analysis of Proposal



Uttar Pradesh Trade Promotion Authority (UPTPA)

Project Cost with break up Total Cost of DSR :- 2.4 Lakh (That includes Consultant Fee, Visits, Seminars of Cluster Stake Holders with Consultant and Other Miss. Expenses For DSR Preparation.


Technical Agency will be Associated as Advised By Consultant .DI/DC MSME/Appropriate.

Justification for DSR To Diagnose Cluster Problems in detail with SWOT analysis, Need for Intervention, Soft Intervention, Hard Intervention and detail action Plan for Intervention needed.

Outcomes of conducting DSR 1.Find Out the SWOT. 2.Cluster Problems. 3.Major Cluster Challenge. 4.Need for Intervention.

Amount Recommended : (Rs. in Lakh)

Rs. 2.40 lakh

Proposal for the Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting diagnostic study in the cluster by Uttar Pradesh Trade Promotion Authority (UPTPA), Kanpur at a total cost of Rs. 2.40 lakh to be made available as GoI contribution.

102

Agenda No. 32.21: Proposal for final approval to Up-grade Infrastructure facilities at Malumichampatti, District Coimbatore, Tamilnadu under MSE-CDP. Proposal was received from Tamilnadu Small Industries Development Corporation (TANSIDCO) Ltd., Chennai, vide Online Ref. No:- 0926 dated 22.11.2012 & recommended by MSME-DI, Chennai. 1 Basic Information about Proposal: a. Proposals received from

TANSIDCO Ltd., Chennai

b. Location of site Malumichampatti, District Coimbatore c. Whether appraised DPR received or not Yes d. Year of setting up of Indl Estate (p-5 of

DPR) 1994

e. Name of agency owning industrial estate (p-5 of DPR)

TANSIDCO Ltd., Chennai

f. Present arrangements of maintenance of the industrial estate (p-6 of DPR)

TANSIDCO is maintaining the industrial estates under its control by way of collecting necessary maintenance charges from the allottees.

g. Main Problems related to Infrastructure (p-13 of SIDBI)

The industrial estate was set in 1994. Since its inception, no infrastructure activities have been undertaken. Some of the roads is damaged and in bad shape. The streets light are very old and few of the lights are not working. There is no provision for storm water drainage. There is one overhead tank (about 50,000 litre capacity) and underground sump (of 20,000 litre capacity). There is an urgent need of up-gradation of infrastructure facilities in the centre.

h. Total Area of industrial estate/ area (acre) 36.14 acres i. Area to be upgraded (acre) 36.14 acres j. Number and sizes of plots (p-10 of

SIDBI) 128 plots (86 plots and 42 sheds) S.No. Extent of land Nos. 1. Upto 15 cent 23 2. 15-25 cents 32 3. 25-50 cents 40 4. 50 cents to 1 acre 19 5. Above 1 acre 14 Total 128

k. Units set up (p-10 of SIDBI) 115 plots allotted to 97 entrepreneurs. 13 plots have not been allotted due to litigation pending with Madras High Court.

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

---

m. Implementing Period 24 months n. Other ID projects sanctioned in same This will be second ID centre in the same district.

103

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

One project - Kurichi, Distt. Coimbatore was sanctioned for up-gradation 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.

2 Details about Proposal:

Description Comments by Cluster Division

a. Implementing Agency (IA): TANSIDCO Ltd., Chennai An undertaking of Govt. of Tamilnadu

b. Track Record of the IA TANSIDCO has completed 13 proposals (including 6 upgradation) for infrastructure development

Track record is satisfactory.

c. Appraisal by SIDBI (Observations and recommendations). Attach SIDBI report.

• The financial performance of TANSIDCO is satisfactory

• SIDBI recommended the proposal to be support worthy

---

d. 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) (p-10 of SIDBI)

Nearest Bus Terminus is located at Malumichampatti (2 km), nearest railway station is Coibatore (12km) and Pothanur (8 km), nearest airport is Coimbatore Airport (30km) and nearest sea port is Kochi port (190km) from the industrial estate. Nearest Post office and Telephone exchange is located in Malumichampatti. The industrial estate is well connected by road to all parts of Tamilandu

---

e. Whether Zoning regulations and non-agricultural conversion etc complied with

This is existing industrial estate (Up-gradation)

---

f. Whether State Level Committee to coordinate and monitor progress has been Constituted

State Level Committee is already Constituted for infrastructure projects.

---

g. 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 ---

104

Description Comments by Cluster Division

h. Basis of elements of project Cost 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.

---

i. Tangible Outcomes of the project (P-18 of DPR)

Presently there are 600 employees and the annual production is about Rs. 120 crore. With the proposed infrastructure development, it is expected that there would be an increase employment generation by 10% and increase in turnover by 20%.

---

j. Justification of the Proposal The infrastructure facilities provided in this industrial estate is more than 18 years old and have become deteriorated due to its continuous usage over a period of time. The upgradation of infrastructure facilities will give not only facelift for industrial estate but also will increase the production of the industrial estate by attracting investors and collaborators with modern technology.

---

3. Project Cost: The project cost for Up-gradation of Infrastructure facilities at Malumichampatti, District Coimbatore, Tamilnadu has been estimated at 200.00 lakh by IA. The break-up of the cost of project and cost eligible for grant from GoI is given here under: (Rs. Lakh)

Particulars Estimated by IA

Recommended by SIDBI

Recommended by O/o DC (MSME)

i Cost of land filling/leveling including boundary wall and fencing

10.50 10.50 10.50

ii Cost of laying roads 71.25 71.25 71.25 iii Road side greenery & social

forestry 2.00 2.00 2.00

iv Water supply including overhead tanks, and pump houses

13.00 13.00 13.00

105

Particulars Estimated by IA

Recommended by SIDBI


v Water harvesting 1.00 1.00 1.00 vi Drainage 55.00 55.00 55.00 vii Power (sub-station and

distribution network including street light etc.), generation of non-conventional energy

32.00 32.00 32.00

viii Contingencies & Pre-operative expenses

15.25 15.25 4.00

Total 200.00 200.00 188.75 4. Means of finance: -

Particulars Proposed by IA

Proposed by SIDBI as per MSE-CDP


i Contribution from allottees 20.00 20.00 26.75 ii Grant from Govt. of TN 60.00 60.00 60.00 iii Grant from Govt. of India 120.00 120.00 113.25

Total 200.00 200.00 200.00 5. Proposal for Steering Committee: Cluster Division recommends the proposal. Committee may consider the proposal for Upgradation of Infrastructure facilities at Malumichampatti, District Coimbatore, Tamilnadu at project cost of Rs. 200.00 lakh with GoI assistance of Rs. 113.25 lakh.

Proposal for up-gradation of existing Industrial EstateAt Malumichampatti Industrial Estate, Coimbatore, Tamilnadu

Under MSE-CDP(liD Scheme) - TANSIDCO

128 industrial plots (including 42 sheds) and allotted to 115 units. The allotment ofthese plots for micro, small and medium units are as under:

SI. Type of plot Size of plot Nos.No

1 Micro Up to 0.15 acre 23

2 Small 0.15- 0.50 acre 72

3 Medium 0.50 acre and above ·33

Total 128

So far, TANSIDCOhas allocated 42 sheds and 73 plots to 115 units and almost 90%of the units are presently in operation. The remaining 13 plots were not allotteddue to pending litigation in the Madras High Court, which has since been vacated.SIDCO has initiated steps for allocation of the balance 13 plots to theentrepreneurs' as per the guidelines. Presently, the industrial estate employeesmore than 3500 workers and the annual turnover of about ~ 200 crore. With theproposed infrastructure development, it is estimated that the employee turnoverwill reduce substantially and increase the employment opportunity for another 200employees. The annual turnover would also increase by 10%.

13. CONCLUSION & RECOMMENDATION

(I) TANSIDCOwas set up by Government of Tamil Nadu mainly for development ofindustrial infrastructure for SSI/ tiny industries in Tamil Nadu. TANSIDCOhasso farestablished 59 Industrial Estates on its own and manages94 industrial estate in allwhich includes 35 Government industrial estates. TANSIDCO has abundanceexperience in implementation of similar projects.

(ii) TANSIDCOhas been assisted under Gol MSE-CDP(liD scheme) for developing 11 newindustrial estates out of which 8 new industrial estates project have already beenimplemented and 3 new industrial estates project are under implementation. Apartfrom that 12 existing industrial estates towards upgradation project have beenassisted under Gol MSE-CDP(liD Scheme) out of which 6 existing industrial estatestowards upgradation project have already been implemented and 6 upgradationprojects are under implementation.

(iii) The financial performance of TANSIDCOis satisfactory.

(iv) SIDCO Industrial Estates at Malumichampatti was established in 1994. There areabout 115 no of industrial units operating in this cluster and employs more than

Proposalfor up-gradationof existing Industrial EstateAt MalumichampattiIndustrialEstate,Coimbatore,Tamilnadu

UnderMSE-CDP(110Scheme)- TANSIDCO

3500 workers. The annual turnover of the industrial estate is about ~ 200 crore.Since inception, there is no infrastructure development activity undertaken.

(v) TANSIDCOhas approached SIDBIfor techno-economic appraisal of the upgradationof the above industrial estate. The specification and cost of developing the estateis generally within the stipulated norms of PWDand Highway Department.

(vi) The proposal broadly conforms to the guidelines under the MSE-CDP(liD Scheme).The compliance chart (Annexure II) is furnished.

(vii) It may be mentioned as per modified guidelines, the proposal requires approval intwo stages (i.e. In principle approval and final approval). TANSIDCOin its letterdated October 08, 2010 has indicated that during discussions with JointDevelopment Commissioner, % DC (MSME),Gol in letter dated 09.08.2010 hasclarified that in-principle approval is required for the proposals of CFCwhich arenot complete/matured enough to be considered for final approval. The in-principleapproval facilitates the implementing agency/proposing organisation to completethe required paper work, formation of SPY, availability of infrastructure etc.,before the final approval is accorded. However, some proposals are complete and.mature and may be considered for final approval (in one stage only). Theseproposals do not need the in-principle approval and hence appraisal of the DPRmay be considered by SIDBIwithout in principle approval. TANSIDCOduring theirvisit to New Delhi on 05.10.2010 had discussions with Joint DevelopmentCommissioner, % DC(MSME),GOIwho has reiterated that in-principle approval isnot required for infrastructuredevelopment project also and the appraisal of DPRmay be considered by uswithout in-principle approval.

(viii) Taking an overall view, particularly in view of the likely benefits accruing to theunits in the industrial estate, the proposal is considered to be support-worthy. Theproposal is submitted to the High Powered Committee constituted by Governmentof India for its consideration of sanction of Central Government grant of ~ 120 lakh(60% of the eligible project cost) to Tamilnadu Small Industries DevelopmentCorporation Limited (TANSIDCO)under the Scheme for MSE-CDP (IntegratedInfrastructural Development Scheme) for its proposal for strengthening andimproving the infrastructure of the industrial Estate at Malumichampatti,Coimbatpre District, Tamil Nadu.

&&&&&&

Proposalfor up-gradation of existing Industrial EstateAt Malumichampatti Industrial Estate, Coimbatore, Tamilnadu

UnderMSE-CDP(110 Scheme) - TANSIDCO

Annexure II

Micro and Small Enterprise - Cluster Development Programme (MSE-COP)

Infrastructure Development -Compliance Chart

Sr Requirements ComplianceNo_1 Implementing Agency (IA) shall be the The implementing agency is TANSIDCO

State/UT Governments, through an which is a state Government body with aappropriate State Government agency with a good track record in implementing suchgood track record in implementing such projects.projects. If the IA is not on the above lines,justification for accepting such agency maybe furnished.

2 Whether in principle approval has been As per clarifications furnished by Officeobtained. If not, the basis for relaxation. of DC, Government of India vide letter of

August 09, 2010, proposals which arecomplete and mature may be consideredfor final approval. As TANSIDCO has. already got the land allotted by StateGovernment and considering itsexperience in the line of activity, it isfelt that, the proposal is complete andmature and recommended for finalapproval.

3 Whether the DPR has been submitted with Yesapproved layout plan

4 Confirmation of availability of suitable land Yesof the requisite size endowed withinfrastructural facilities as indicated at9.1.2(b) page3 of the modifications.

5 Whether the land is in possession in the Yes. The land was transferred toname of the Implementing Agency with clear TANSIDCO in 1994 which hastitle and complying with Zoning regulations subsequently been allocated to the MSMEand non-agricultural conversion etc. Units and sale deeds have been

executed. There are few plots which areyet to be allocated. The industrial estateis complying with Zoning regulations andnon-agricultural conversion.

6 Whether the state level committee to A condition to this effect is proposed.coordinate and monitor the progress of theimplementation of the project has beenconstituted

7 Whether location of the project is in Yescompliance of requirements stipulated underSr. no. 10(a) page 6 of the modifiedguidelines.

8 Whether the amount of envisaged grant Yesfrom GOI is in line with the guidelinescontained in para 10(b) of page 6

9 Whether the estimated cost for different Yescomponents is within the caps prescribed

fos,·CCj

Proposal for up-gradation of existing Industrial EstateAt Malumichampatti Industrial Estate, Coimbatore, Tamilnadu

Under MSE-CDP (110Scheme) - TANSlOCO

--under Annexure 4 to the guidelines (page 21)in respect of the new site developments.

10 The cost estimates have been made based Yeson the approved rates and whether thespecifications have been given.

106

Agenda No. 32.22: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Gate and Grill Cluster, Thiruvallur, Tamilnadu. Proposal was received from Thirumullaivoil Grills & Fabrication Cluster Private Limited, Vide Online Ref. No:- 0776 / Dated : 14/10/2012 & recommended by MSME-DI, Chennai. DSR Details

DSR Conducted By : R Vasudevan & Co

Validated By : Government of Tamilnadu


When Completed : 01/02/2012 1. Basic Information of Cluster

Name of Cluster : Gate and Grill Cluster

Location of Cluster : Thiruvallur, Tamilnadu

Main Product : Grill Accessories, Mild Steel Staircase Grills, Mild Steel Window Grills, MS and Cast iron Compound Grills and MS Grill Gates



Turnover(Rs in Crore) for the last five years :

2006-07 2007-08 2008-09 2009-10 2010-11

375.00 402.00 429.00 462.00 500.00


2010-11 1.00

Employment in Cluster : Direct - 15000 Indirect - 10000

Technology Details : The Technology has been very low. The individual micro units use Welding Machine, Grinding Machine and Drilling Machine in their units.


Main findings of DSR : High cost of raw materials and difficulty in the availability at the required time, Low level of technology used the micro units, Inadequate capital base unable to access credit easily, Poor economies of scale High dependence on Real estate construction

107

activity, Limited accessibility to Research and Development facilities.

Main Problems of Cluster : Poor Capital Base, Low Technology, Lower Productivity, High Cost of Raw Materials, Difficulty in timely availability of Raw Materials of required quantity, Inadequate Quality Control, Limited Marketing Network and Managerial Ability.

2. Information about Proposed CFC



(a.) Justification for CFC

Mild steel in the form of rods, tubes, angles, flats and channels are Main raw material for cluster members. The members use these materials that has lesser weight. Steel re-rolling mills prefers to manufacture in such dimensions and thicknesses that will have more weight. Lesser weight materials are manufactured only in their excess capacity and only when they have sufficient orders for such items. The cost of raw materials is high when procured from the Traders. Timely getting delivery of raw materials is another problem. The micro players survival heavily depends on the raw material cost and its timely availability. When materials are procured from two different mills for a single order, they differ in quality which in turn will affect the quality of the final products manufactured by the cluster units. A Common Facility Centre for raw materials, A Steel Re-rolling Mill will solve all the above problems.

--

(b.) Location of CFC Nemiliagaram Village in Thiruvallur District, Thiruvallur Circle, Kancheepuram Registration District, Thiruvallankadu Registrar

--


20 --


60 --

(c.) Land for CFC

108



i. Whether land acquired

yes --

ii. Title is in name of Thirumullaivoil Grills & Fabrication Cluster Private Limited

--

iii. Valuation and its basis

Rs.8.24 lacs - Purchase price + Rs.11.76 Stamp duty, registration & site development

--

iv. Land is sufficient yes --

v. Change of land use obtained --


NA NA


NA --


6975 sq.ft --


Rs.230/- per sq.ft. Seems to be on lower side.

(f.) Main Facility Proposed

steel rerolling facility --

(g.) Prod capacity of CFC

18 T to 25 T per shift --

(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.)

Increase in number of units from 3000 to 3200 within a year Increase in employment from 25000 to 26500 Increase in turnover from Rs.500 crores to Rs.530 crores Increase in exports from Rs.1 crore to Rs.4 crore Increase in unit level income for Micro from Rs.6 lacs to Rs.7.5 lacs and Small from Rs.10 lacs to Rs.12 lacs

Deliverables should be with time limits.


No discharge of toxic effluents Consent to establish is required.

(j.) Man Power in CFC 39 --

(k.) Revenue generation mechanism for

Conversion charges for conversion of ingots to flats, angles, square rods

--

109



sustainability of assets(service/user charges to be levied, any other-to be specified)

depending upon the output rates. For 18 T per shift - Rs.5.00 per kg, for 20 T per shift - Rs.4.50 per kg and for 25 T per shift Rs.3.60 per kg




(a.) Name and Address Thirumullaivoil Grills & Fabrication Cluster Private Limited 1/8 Manikandapuram 4th street, Thirumullaivoil, Chennai 600032

--


Private Limited Company --


Provision made in the Articles of Association of the Company. Yet to be nominated by the State Government and MSME-DI, Chennai

--

(d.) Date of formation of SPV 9-11-2009 --

(e.) Number of Members 30 --


Memorandum of Association and Articles of Association enclosed as annexure to DPR

The main objective of SPV should be SME cluster development.

(g.) Authorized Share Capital Rs.40.00 lacs --

(h.) Paid up capital as on............

Rs.30.00 lacs --

(i.) Shareholding Pattern Share Holding Pattern enclosed as Annexure to DPR

--


Commitment Letter for Contribution enclosed as Annexure to DPR

Commitment is required.

(k.) SPV specific A/c Bank of India Current Account Current A/C No. 805820110000017

(l.) Trust Building of SPV, Previous track record of co-operative initiatives pursued by SPV members need to to be

The Cluster members have a strong Association Akila India Grill Thozhilalarkal Nala Snagam which has conducted a number of awareness

Action plan for soft interventions proposed in the DSR attached with DPR. Clarification on

110



highlighted with support documentation

programme. The MSME-DI has also conducted awareness programme about cluster development programmes. Following these programmes, the SPV was formed as a private limited company and it has 30 members as on date.

status of soft interventions is required.

(m.) Technical Institution CSIR (Structural Engineering Research)

--

(n.) CFC may be utilised by SPV members as also others in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity.

Undertaking given that SPV members would be utilising 60% of the operating capacity of the CFC and non-SPV members would be utilising 40% of the operating capacity of the CFC.

Specific commitment is required.

(o.) (a) Power requirement for commercial/domestic purpose

1500 HP --

(b) Water Not required for Processing. Only for civic purposes.

--

(c) Gas/Oil/Other Utilities Coke - 2 Tonnes per Shift -- 4. Implement Arrangements



(a.) Implementing Agency TANSIDCO, Chennai As per guidelines

(b.) Fund receiving Agency TANSIDCO, Chennai

(c.) Implementation Period 12 months Should be 24 months from date of final approval.


SIDBI has appraised the DPR. In its recommendation it has stated that the Project is technically and financially viable. The proposed performance indicators and financial position are satisfactory. SIDBI has recommended the proposal for

Received

111

placing the CFC proposal in the Steering Committee.


The Technical Committee meeting for validation of the Project was held at the head office of SIDCO on 9th February 2001. The report was validated in the presence of Deputy General Manager, TANSIDCO, Joint Director, IC & DIC, Deputy Director, MSME-DI, officials of DIC and SIDCO and senior scientist from CSIR (Structural Engineering Research)

The proposal is under examination.


The State level Technical Committee has recommended the CFC proposal.

Yet to be placed before the Technical Committee.


- Required clarifications.

(h.) Working capital(In-principle sanction of loan from a bank,if applicable arrangement made)

Bank of India has given their in-principle sanction for working capital facilities.

It is mentioned in the SIDBI appraisal that Bank of India, Thiruvallur agreed in-principle to sanction WC.



(a.) BEP 51.36% In SIDBI appraisal on 60% capacity utilization (1st year) BEP is 32.10% as per guidelines.

(b.) IRR, Payback period 16.46% 21.21% as per SIDBI appraisal.

(c.) DSCR NA --


34.19% As per SIDBI appraisal in the 1st year ROCE is 13.94% and in the optimum year is 25.69% - needs clarification.

(e.) NPV Rs.79.94 lacs NPV after tax is Rs.429.55 lakh

(f.) DER - --

(g.) Sensitivity Analysis With 5% fall in income the IRR should still be 11.58%

Positive

112










Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 19.28 57.25 (2.) Grant-in-aid from Govt. of India 70.72 209.98 (3.) Grant-in-aid from Govt. of TN 10.00 29.69 (4.) Bank Loan/others 0.00 0.00 Total 100.00 296.92 8. Shortcomings:- Ø Details of cluster units are required. Ø Proposed construction cost seems to be on lower side. Ø Proposed project deliverables should be with time limits. Ø Consent to establish is required from Pollution Control Board. Ø The main objective of SPV should be SME cluster development. Ø Commitment regarding State Govt. & SPV contribution is required. Ø Action plan for soft interventions proposed in the DSR attached with DPR. Clarification on

status of soft interventions is required. Ø Specific commitment regarding 60% capacity utilization by SPV members is required. Ø Implementation period should be 24 months from date of final approval. Ø As per SIDBI appraisal in the 1st year ROCE is 13.94% and in the optimum year is 25.69% -

needs clarification. 9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) for Gate and Grill Cluster, Thiruvallur, Tamilnadu.

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Agenda No. 32.23: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Gold Jewellary Cluster, Madurai, Tamilnadu. Proposal was received from Madruai Jewellary Manufacturers' Consortium Private Limited, Vide Online Ref. No:- 0714 / Dated : 21/09/2012 & recommended by MSME-DI, Chennai. DSR Details DSR Conducted By : Friday Solutions

Validated By : TANSIDCO/GoTN Deptt. of MSME


When Completed : 01/04/2012 1. Basic Information of Cluster

Name of Cluster : Gold Jewellary Cluster Location of Cluster : Madurai Main Product : Gold Jewellery, Gold rings, Gold Studs, Chain No. of Enterprises including break up (Micro, Small, Medium) :


Turnover(Rs in Crore) for the last five years : 1st Year : 2nd Year : 3rd Year : 4th Year : 5th Year :

350 380 400 450 475

Exports (Rs in Crore) for the last five years : 5th Year : 3 Employment in Cluster : 15000 (Direct/Indirect) Technology Details : Conventional machines using mostly hand tools. Whether DS Conducted : Yes Main findings of DSR : Majority of manufactures are artisan type, not having state of

art of technology, CFC will create opportunity for product diversification, a tool to minimize waste, specialization and enhancing supply chain, quality testing, improvement in efficiency of the skilled force.

Main Problems of Cluster : Technology constraint, low productivity, poor product diversification, lack of skilled man power, lack of brand image, poor market penetration due to low brand penetration like new design activity. Obsolete technology, household type of venture.

Other Information : Poor marketing tie-up, poor R&D, lack of testing facility within the cluster.

114




(a.) Justification for CFC All are artisan type players. Low product diversification. Poor productivity, Low state of art of technology. CFC will reduce the cost of production, enhance the quality of the products. Improve the productivity and increase the income level at unit level. Additional employment opportunity, minimization of waste.

--

(b.) Location of CFC Madurai --


90 --


100 --

(c.) Land for CFC i. Whether land acquired Yes Yes. Copy of

registered sale deed submitted.

ii. Title is in name of SPV Yes.

iii. Valuation and its basis prevailing market rate Registered sale deed.

iv. Land is sufficient Yes --

v. Change of land use Yes Land use permission is required.


-- --


-- --


2312 sq.ft --


Rs.1000/sq.ft --

(f.) Main Facility Proposed Common melting facility, common pressing & die, Casting facility. Gold check facility

--

115



(g.) Prod capacity of CFC Gold check facility 4 (1KW) Melting machine 6 (3.375 kw) Sheet, wire drawing machine: 1 Press & Die : 1 Electro polishing and electro plate: 9 Finishing: 2 Refining : 1 Common Laser:2 Common casting : 2 Caliberation: 1 Ancillary/testing items: 7 (Details of the capacity is given in report)

--


Create leverage within cluster. Production will increase by 50% in first year after the formation of CFC. Retail business increase by 25% in first year. Profitability and reduction of waste in first year, employment enhancement - 3 per unit in the first year, ISO certification will be obtained by 30% of member unit etc.

Deliverables should be in quantified terms with time limits.


Not required. However, SPV applied for consent for establishment

Consent to establish is required.


(k.) Revenue generation mechanism for sustainability of assets(service/user charges to be levied,any other-to be specified)

Service charges from CFC Total expected income from CFC 132.15 lakh in first year. From training facility Rs.6.24 lakh in the first year.

Under examined with Technical Division.




(a.) Name and Address Madurai Jewellary Manufacturers' Consortium Private Limited, 12A Kansa Mettu Street, Lane 1, Jewellary Bazaar, Madurai 625 001

--


Private Limited Company Registered under company act 1956 (No. 1 of 1956)


Representative of IC & DIc Director or and his representative from MSME-DI, Chennai

Provision for inclusion of state govt. official and MSME official required.

116



(d.) Date of formation of SPV

18-7-2010 --



Submitted --

(g.) Authorized Share Capital

Submitted --


Submitted --

(i.) Shareholding Pattern Submitted Shareholding of only 20 members provided.


Submitted --

(k.) SPV specific A/c Submitted C/A No. 933346461


Submitted Soft intervention proposal included in the DPR. Clarification required.

(m.) Technical Institution Made a tie up gold jewellay export promotion council

--


submitted --


2.64 lakh in the first year of --

(b) Water minimum --

(c) Gas/Oil/Other Utilities - --

117

4. Implement Arrangements Description Proposed by Implementation


(a.) Implementing Agency Madurai Jewellery Manufacturers Consortium Private Limited (MJM) is the Special Purpose Vehicle formed by the cluster units

Should be TANSIDCO, Chennai.


(c.) Implementation Period 1 year Should be 24 months from the date of approval.


Appraisal of report was done by Indian Bank in line with SIDBI Common Raw Material Bank for Gold, Silver & Copper. Incubation Centre for new entrepreneurs Common Testing Facility, Common Production Facility, Common Finishing Facility Common Refining facility for the cluster to overcome the non- availability of modern support industries in the cluster location. Common Training facilities to enable the cluster units create new skill force as well train the existing skills to the next level. Cluster units to gain access into newer markets. Cluster units are currently majorly catering to nearby sates. However the cluster units have the potential to expand to markets across the country & abroad. Skill development for Entrepreneurs on Finance, Accounts & General Management Proper implementation of Various Government Schemes for Social welfare measures conditions of workers

--

118



Safety measures - implementation and training on safety measures Common marketing and branding for the cluster Creation of CFC and Cluster Induced support will only help the artisan type gold jewellary manufactures to retain their business venture in the competitive Business environment. The big players have already started their base in Madurai with huge investment. Cluster initiative is the only supporting system for the micro players.


The technical committee of Govt of Tamilnadu has already cleared the proposal and the GoTN recommended the project to GoI for financial assistance under MSE-CDP scheme.

Under examination with Technical Division.


State Technical Committee approved the project



Cluster Division of MSME-DI Chennai had already evaluated the proposal and also visited the cluster members units. More soft intervention initiatives were undertaken with the support of MSME-DI, Chennai

--


Make with banker It is mentioned in the appraisal note by Indian Bank that the working capital requirement will be met by company.




(a.) BEP 44.68

(b.) IRR, Payback period 10years IRR 10.54%

119



(c.) DSCR 8.38 lakh in the first year As per guidelines.


average ROC 27.23%

(e.) NPV 8.55 lak at 10%

(f.) DER 0.68 in the first year

(g.) Sensitivity Analysis positive 6. Total Cost : The total cost of the CFC is as follow:

Particulars Total Cost (Rs. in Lakh)






12.00




Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 11.04 39.92 (2.) Grant-in-aid from Govt. of India 72.15 260.82 (3.) Grant-in-aid from Govt. of 8.06 29.14 (4.) Bank Loan/others 8.74 31.60 Total 100.00 361.48 8. Shortcomings:- Ø DPR is not as per Annexure- II of guidelines. Ø Land use permission. Ø Deliverables should be in quantified terms with time limits. Ø Consent to establish from Pollution Control Board.

120

Ø Provision for inclusion of state govt. official and MSME official. Ø Soft intervention proposal included in the DPR- needs Clarification, Ø In-principle for working capital.

9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) for Gold Jewellary Cluster, Madurai, Tamilnadu.

121

Agenda No. 32.24: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Powerloom Cluster, Salem, Tamilnadu. Proposal was received from Salem Looms Clusters Consortium Private Limited, Vide Online Ref. No:- 0911 / Dated : 29/12/2012 & recommended by MSME-DI, Chennai. DSR Details DSR Conducted By : Friday Solutions Private Limited

Validated By : SPV & State Steering Committee


When Completed : 31/05/2011 1. Basic Information of Cluster Name of Cluster : Powerloom Cluster

Location of Cluster : Salem

Main Product : Fabrics of various types




2006-2007 - 1500 2007-2008 - 1800 2008-2009 - 2100 2009-2010 - 2400 2010-2011 - 2600


--

Employment in Cluster : 110000 to 120000

Technology Details : Majority Power looms & fast growing auto looms; lack of adequate capacity for sizing, warping, dyeing (less than 5% of the cluster need)


Main findings of DSR : Production of Fabric, input supply of yarn are as per growing capacity needs. But, sizing, warping and dyeing are far less than the cluster needs.

Main Problems of Cluster : The cluster units have to depend on few sizing, warping and dyeing units from other locations such as Erode which is 70 km away. This results in delay in production and increase in costs. The units are always under utilised.

122




(a.) Justification for CFC CFC with Dyeing facility for Yarns, Sizing & Warping facility for the cluster units shall improve their business multi folds. Having Auto Loom as a training setup and model center shall help to build skills and help to compliment many power loom units.

--

(b.) Location of CFC 8 3A part 3B part Kalikoundanpalayam Village Sankari TK Salem District PIN Code : 637103

---


20 --


70 --

(c.) Land for CFC i. Whether land acquired yes SPV has purchased

Agriculture land.

ii. Title is in name of Salem Looms Clusters Consortium Private Limited

Yes.

iii. Valuation and its basis Government Guideline Value Sale deed.


v. Change of land use NOC obtained from Local Body, Government of Tamilnadu

Conditional NOC obtained from local body.


Not Applicable --


Not Applicable --

(d.) Total Building area(sq ft) 35000 --


Rs.650 per sq ft --

(f.) Main Facility Proposed Dyeing Unit, Effluent Treatment Plant, Sizing, Warping and Auto Loom Facilities

--

123



(g.) Prod capacity of CFC Dyeing 2100 KG per day. Sizing - 22000 M, Warping 60000 M, Auto Loom - 2730 per day

--

(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.)

Production to improve by 30% to the members and 5 to 10% for about 2000 units. Cluster members through consortium shall directly avail export orders and supply to domestic retailers; employment expected to improve by 5000 over 5 years

Projected outputs / deliverables should quantitative with time limits.


Required Already applied to Tamilnadu Pollution Control Board Form I & Form II. After completion of construction final clearance shall be obtained

Applied for NOC from Tamilnadu Pollution Control Board.



Service Charges for Dyeing, Sizing, Warping & Training

--

3. Information about SPV Description Proposed by Implementation Agency


(a.) Name and Address Salem Looms Cluster Consortium Private Limited 11/6, East Street No.1, Karungalpatty, Salem 636006

--


Private Limited As per guidelines.


To be informed by MSME DI & TANSIDCO

Provision of inclusion of State Govt. and MSME official in SPV required.


13.05.2011 --

(e.) Number of Members 47 Details given.

124




enclosed In AoA cluster members means any person whose engaged in the cement based products and pipe making industry in and around Erode requires correction.


Rs.1 Lac; Members have approved to increase it to Rs.2 Cr.

--


Rs.37 Lacs as Share application Money received

--

(i.) Shareholding Pattern Minimum 0.93% (of Rs.1.68 Lacs) to Maximum of 2.80% (of Rs.5.04 Lacs).

--


Enclosed --

(k.) SPV specific A/c State Bank of Mysore; Letter enclosed Bank account number is required.


SPV has taken various proactive steps since January 2011.

SPV formed, details of soft interventions required.

(m.) Technical Institution PDEXIL, SITRA --


Members have committed for 60% utilisation

Commitment received.


926 KW --

(b) Water 525 KLD capacity (Ground water available)

--

125



(c) Gas/Oil/Other Utilities N.A -- 4. Implement Arrangements Description Proposed by Implementation


(a.) Implementing Agency TANSIDCO, Government of Tamilnadu

As per guidelines.

(b.) Fund receiving Agency TANSIDCO

(c.) Implementation Period 45 Weeks Should be 2 years from date of final approval as per guidelines.


Government of Tamilnadu has recommended the proposal

Proposal is appraised by State Bank of Mysore and recommended at technically feasible and financially viable.


Approval from GoI to be obtained --


Approval from GoI to be obtained --

(g.) Working capital(In-principle sanction of loan from a bank, if applicable arrangement made)

State Bank of Mysore has provided in principle sanction

--


Agency (IA) Comments by Cluster

Division

(a.) BEP 45.89% As per guidelines.

(b.) IRR, Payback period IRR is 14.01%; Payback Period is 5 years 2 Months

(c.) DSCR 6.19 --


31.77% As per guidelines.

(e.) NPV Rs.279.67 Lacs --

126



(f.) DER 0.66 --

(g.) Sensitivity Analysis For decrease in Sales by 10% BEP is 62.23%, hence viable

--







20.00




Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 12.00 179.58 (2.) Grant-in-aid from Govt. of India 68.94 1032.03 (3.) Grant-in-aid from Govt. of TN 6.60 98.78 (4.) Bank Loan/others 12.46 186.55 Total 100.00 1496.94 8. Shortcomings:- Ø DSR is the part of DPR, details of the cluster units are required. Ø No information regarding validation. Ø SPV formed, as per AoA – “cluster members means any person whose engaged in the cement

based products and pipe making industry in and around Erode” whereas cluster is related to powerlooms- required correction and also required provision of inclusion of State Govt. and MSME official in SPV.

Ø Agriculture land purchased - conditional NOC obtained from local body, conversion of land for industrial purpose is required.

Ø Project outputs / deliverables should quantitative with time limits. Ø Bank account number is not given. Ø Recommendation letter from State Govt. has not been enclosed.

127

9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) in Powerloom Cluster, Salem, Tamilnadu.

128

Agenda No. 32.25: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Readymade Garments (Women) Cluster, Dhalavaipuram, Virudhunagar, Tamilnadu. Proposal was received from Dhalavaipuram Women's Garments Manufacturers' Association, Vide Online Ref. No:- 0789 / Dated : 14/10/2012 & recommended by MSME-DI, Chennai. DSR Details DSR Conducted By : R. Vasudevan & Co

Validated By : Government of Tamil Nadu


When Completed : 31/01/2012 1. Basic Information of Cluster Name of Cluster : Readymade Garments (Women) Cluster

Location of Cluster : Dhalavaipuram

Main Product : Chudithar, Inskirts, Night suit and Nighties


Micro : 320 Small : 30 Medium : 0 (100% Women)


2006-07 - 480 2007-08 - 533 2008-09 - 627 2009-10 - 738 2010-11- 820

Exports(Rs in Crore) for the last five years : NIL

Employment in Cluster : Direct 8500 Indirect 10000

Technology Details : The units in the cluster use indigenous / imported Tailoring Machines. Only few units have the facility for Embroidery work with very little capacity (4-5 heads)


Main findings of DSR : Very limited product range Most of them are micro units Dependence on bigger units for embroidery work Inadequate infrastructure and working capital Requirement for skill development

Main Problems of Cluster : The product range is very limited Frequent power shut down They do not have the capacity to manufacture value added products (such as embroidery work on Churidars & nighties) Lack of market development and marketing.

Other Information : Dhalavaipuram and its surroundings have more than 2500 micro and

129

small units engaged in readymade garments. The garment cluster at Dhalavaipuram has a sub cluster of about 350 women cluster. More than 80% of workers in the cluster are women workers. Promoting the women cluster of 350 units under the MSE-CDP would not only increase the income of the micro and small units, but will also encourage more women to take up entrepreneurship.



(a.) Justification for CFC The proposed CFC will create value added products from the cluster. The proposed CFC will enable micro and small units to go for diversification through embroidery work to other products viz., Curtains, Pillow Covers, Sofa Covers, Embroidery Sarees etc., The Training Centre will generate 150 - 160 skilled tailors per annum

--

(b.) Location of CFC "Aranmanai Veedu" Street, Zamminkottai, Zamminkollankondan, Rajapalayam Taluk, Virudhunagar District.

--


30 --


70 --

(c.) Land for CFC i. Whether land acquired NA. CFC on leased Premises Only rental agreement

made. Registered lease deed is required.

ii. Title is in name of NA No.

iii. Valuation and its basis NA Not applicable.

iv. Land is sufficient Yes CFC proposed on 1500 sq. ft. area, seems to be inadequate.

v. Change of land use NA Required.


Yes. Lease for 15 years Only rental agreement made.

130




Yes --


1500 sq. ft. Seems to be inadequate.


NA --

(f.) Main Facility Proposed Computerised Embroidery and Stitching Facility Training for Women Tailors

--

(g.) Prod capacity of CFC Variable - will depend upon the size of the design. 600 pieces per day - Churidars or Nighties 420 pieces per day - Curtains 540 pieces per day - Pillow Covers etc.,

--


No of units expected to increase from 350 to 375 within one year and to 450 within 3 years. Employment to increase from 8500 to 9500 within one year and to 10500 within 3 years. Turnover to increase from Rs.820 Crores to Rs.900 Crores within one year and to Rs.1000 crores within 3 years. Diversification to newer products viz., Curtains, Pillow Covers, sofa Covers, embroidery sarees etc., Generation of 150 to 160 skilled women tailors per annum

--


Not required Consent to establish is required.



Service Charges for Embroidery work and stitching work on Churidars, Nighties, Sarees, Curtains, Pillow Covers, sofa covers. Fees for training tailors.

--




131



(a.) Name and Address Dhalavaipuram Women's Garments Manufacturers' Association 1/57 Saravana Hospital Street, Dhalavaipuram, Rajapalayam Taluk, Virudhunagar District.

Objective of the SPV should be SME cluster development.


Society --


Provision has been made to include one state government official and one MSME official in the bye-laws of the society. Yet to be nominated by the Government.

--


15.01.2011 (registered on 22-03-2011) --



Bye-laws of society enclosed as annexure to DPR

--


NA (Society) NA


Contribution as on date - Rs.6.00 lacs --

(i.) Shareholding Pattern Contribution of members enclosed as annexure to DPR

--


Commitment letter for contribution is enclosed as annexure to DPR.

Commitment of SPV contribution of Rs. 20.60 lakh is required.

(k.) SPV specific A/c Indian Overseas Bank Current A/c No. 133102000002300

--

(l.) Trust Building of SPV, Previous track record of co-operative initiatives pursued by SPV members need to to be highlighted with support documentation

MSME-DI Chennai conducted number of programmes for the cluster members and some of them exclusively for the women entrepreneurs. a section of women entrepreneurs at the cluster have joined together and have formed the consortium M/s Dhalavaipuram Women's Garments Manufacturers" Association.

--

(m.) Technical Institution Apparel Training & Design Centre, Guindy, Chennai 600032

--

132




Undertaking for utilisation has been given by the SPV. The SPV members will utilise 60% of the capacity and 40% will be utilised by non-members.

--


10 HP --

(b) Water Only for civic purposes --

(c) Gas/Oil/Other Utilities

- --

4. Implement Arrangements Description Proposed by Implementation Agency


Division

(a.) Implementing Agency TANSIDCO, Chennai As per guidelines


(c.) Implementation Period 12 months Should be 24 months from the date of final approval.


SIDBI has appraised the DPR. The existing units in the cluster and the new entrepreneurs need modern technology support which these units could not afford due to huge capital investment. Besides the operations of the cluster will grow manifold, which would result in improvement in the overall socio economic conditions of large number of people and society at large in this district. the project is technically feasible and financially viable. the proposed performance indicators and financial position are

--

133



satisfactory. The proposal may be submitted to the steering committee of the MSE-CDP for its consideration.


The suggestions of the State Level Technical committee have been incorporated in the DPR.

Tech division supported the proposal.


The State level Technical Committee has recommended the proposal.



Working Capital limit of Rs.1.50 lacs would be availed from Indian Overseas Bank

--

5. Financial Analysis of CFC Description Proposed by Implementation Agency (IA) Comments by Cluster

Division


(b.) IRR, Payback period 16.93% --

(c.) DSCR NA --


36.68% As per guidelines.

(e.) NPV Rs.28.58 lacs --

(f.) DER - --

(g.) Sensitivity Analysis With 5% fall in the income, the IRR would still be 13.26%

--

6. Total Cost : The total cost of the CFC is as follow:






134





Particulars %age Amount (Rs. in lakh)

SIDBI recommendation

(Rs. In lakh) (1.) SPV contribution 10.61 9.93 20.60 (2.) Grant-in-aid from Govt. of India 79.39 74.28 74.28 (3.) Grant-in-aid from Govt. of Tamilnadu 10.00 9.36 9.36 Total 100.00 93.57 104.24 8. Shortcomings:- Ø Proposal is not as per the Annexure - II of the guidelines, Ø DSR attached with DPR, units details are required. Ø CFC proposed on 1500 sq. ft. area, seems to be inadequate. only rental agreement made -

registered lease deed required, Ø Consent to establish is required, Ø Objective of the SPV should be SME cluster development, Ø Commitment of SPV contribution,

9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) in Readymade Garments (Women) Cluster, Dhalavaipuram, Virudhunagar, Tamilnadu.

135

Agenda No.32.26 Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Engineering Cluster, Ambattur, Thiruvllur, Tamilnadu.

Revised proposal was received from Ambattur Tapstia Engineering Consortium Private Limited, Vide Online Ref. No:- 1006 / Dated : 16/12/2012 & recommended by MSME-DI, Chennai.

The proposal for setting up of CFC in Engineering Cluster, Ambattur was discussed in the 30th

Steering Committee meeting held on 19.06.2012. During the discussion AS&DC, MSME desired that the MSME-DI, Chennai to modify the proposal as per requirement of micro units and suggest appropriate machinery. The proposal was not approved. The Committee desired that the proposal may be recast as per requirements of micro units and re-submitted. DSR Details DSR Conducted By : MSME-DI, Chennai

Validated By : Government of Tamil Nadu


When Completed : 30/04/2008 1. Basic Information of Cluster Name of Cluster : Engineering Cluster

Location of Cluster : Ambattur

Main Product : Air Compressors, Aluminium Castings, Hand Tools, Auto Parts and Accessories, Dies and Moulds, Electrical M/c parts, Fabrication of Boilers and Iron Castings, Industrial Values, Power Equipments, Tools and Pressed Components and Tractor and Agricultural Equipments




2006-2007 - 406.00 2007-2008 - 446.00 2008-2009 - 490.00 2009-2010 - 516.00 2010-2011 - 561.00


2006-2007 - 26.00 2007-2008 - 29.00 2008-2009 - 31.00 2009-2010 - 33.00 2010-2011 - 36.00

136

Employment in Cluster : 32400

Technology Details : Mostly micro units have very limited capacity with old / obsolete machineries (lathe, frilling, grinding / turning, shaping etc)

Whether DS Conducted : Yes. DS conducted by MSME-DI, Chennai and DSR validated by Government of Tamil Nadu

Main findings of DSR : Low technology level. Inability to 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.

Main Problems of Cluster : 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)

2. Information about Proposed CFC Description Proposed by Implementation Agency (IA) Comments by

Cluster Division

(a.) Justification for CFC Most of the engineering units at Ambattur are Micro Units. These units have very limited capacity and operate with old / obsolete machineries (lathe/drilling/ grinding/turning/shaping) They are not capable of manufacturing integrated / composite products. Their productivity level is very low. The micro and small scale enterprises are not having capacity and capabilities to undertake big and sensitive orders due to lake of production facilities existing at firm level. These units are also financially weak to enhance their infrastructure to take up bigger orders. Individually these units cannot get orders from bigger companies like BHEL, L & T and others and from Railways, Defence Department etc., The best solution under these circumstances to enhance the production and profitability of these micro and small units is to create a Common Facility Centre having higher capacity machineries which are not available with the individual units. The CFC centre will

---

137


Offer machining services of these machines to the cluster units at reasonable charges. Procure bigger job orders for which certain processes will be done at the individual Cluster units and certain operations at the CFC. The CFC will generate more business (job works) for the cluster units. Procure Structural Fabrication orders in which part of the work will be done by the CFC and the balance work will be done at the individual units. Thus the CFC will enable the micro and small units to have more business and share the work of heavy orders which otherwise is beyond their reach. This will increase the turnover of these units (a minimum of 10%) and as a result increase their profitability and liquidity position.

(b.) Location of CFC Plot No. PP2 in the SIDCO Industrial Estate, Women Industrial Park Thirumullaivoil

Plot allotted by SIDCO

(c.) Land for CFC i. Whether land acquired Yes. TANSIDCO has allotted 0.814 acres of

land in the name of SPV at Plot No. PP2 in the SIDCO Indus

Only letter of allotment submitted along with application. Registered sale deed is required.

ii. Title is in name of SPV --

iii. Valuation and its basis Rs.101.94 lacs (Rs.112.15 including registration & development)

--


v. Change of land use The land is situated within SIDCO Industrial Estate

Proposed land is situated in industrial estate.


NA NA


NA NA

138



Industrial Sheds 2 Total - 6467 sq. ft. Training Centre, Testing Centre and Canteen (GF) 2604 sq. ft Office Building and Conference Hall (FF) 2604 sq. ft. Compound Wall 800 R. ft.

--


Industrial Shed at Rs.800 per sq. ft. RCC Building at Rs.900 per sq. ft. Compound Wall at Rs.1350 per R. ft.

--

(f.) Main Facility Proposed Tool Room cum Training Centre Machine Shop & Common Processing Centre Heavy Fabrication Shop Testing Facilities

--

(g.) Prod capacity of CFC Variable (depends on Machinery and Products) Fabrication 25 Tonnes per Month

--


Increase in Employment from 32400 to 33300 within one year and 36000 within 3 years Increase in turnover from Rs.561 crores to Rs.590 crores within 1 year and to Rs.630 crores within 3 years Increase in exports from Rs.36 crores to Rs.40 crores within 1 year and to Rs.45 crores within 3 years. Increase in number of micro and small units from 5350 to 5500 within 1 year and to 6000 within 3 years.

--


Yes Consent to establish is required.

(j.) Man Power in CFC 109 (Factory 93 Administrative 16) --


User Charges for Machineries at Hourly rate For Heavy Fabrication at Tonnage Rate Testing Charges at Type of test Training of Workers at Monthly fees

--

139



(a.) Name and Address M/s Ambattur Tapstia Engineering Consortium Private Limited., No. 203, New Tiny Sector, Park Road, Ambattur Industries Estate, Chennai

--


Private Limited Company Private limited company under companies act 1956 (1 of 1956).


Provision for inclusion of one State Government and one MSME official in the SPV is in the Articles of Association of the Company. Government is yet to appoint them.

Provision made in bylaws.


4.9.2009 --



MOA and AOA are enclosed with the DPR as annexure.

--


Rs.50.00 lacs --


Rs.41.00 lacs --

(i.) Shareholding Pattern Share Holding Pattern enclosed as Annexure to the DPR

--


Commitment letter from SPV for contribution has been enclosed as annexure to the DPR

--

(k.) SPV specific A/c Indian Bank Current A/c No.892051129 with Ambattur OT Branch

--


SPV already formed. Soft interventions undertaken by MSME-DI Chennai under MSE- CDP during 2008-2011

--

(m.) Technical Institution CSIR, Chennai --

140




60% capacity of the CFC will be utilised by the SPV members and the balance 40% will be offered to non-SPV members. Undertaking for utilisation of CFC has been enclosed as annexure.

Commitment received.


515 HP --

(b) Water For Civic Purpose only (about 2000 liters per day)

--

(c) Gas/Oil/Other Utilities 1250 liters of Diesel for Generator -- 4. Implement Arrangements Description Proposed by Implementation Agency


(a.) Implementing Agency TANSIDCO, Chennai As per guidelines.


(c.) Implementation Period 12 months from the date of approval of CFC

Should be 24 months from the date of final approval.


DPR has been appraised by Indian Bank and the appraisal report is in the format of SIDBI. In the present industry scenario, the MSME sector also needs to be competitive and face the market by improving their productivity and capability for better performance. To this objective, the CFC will assist the micro and small units in the cluster area in achieving the much needed momentum. The initiative of the SPV for establishing the CFC for the engineering cluster is to provide high-tech common infrastructure to the MSEs under the MSE-CDP of GOI

Appraisal note is recommendation by DGM, Indian Bank, Chennai North to corporate office for approval of term loan of Rs.150.00 lakh and margin money for WC Rs. 18.00 lakh. In the proposal term loan of Rs. 150.00 lakh from Bank is proposed.

141



is found to be absolutely need based as the existing micro units are not in a position to upgrade them due to prohibitive capital investment. With the establishment of the CFC, the economic activities of the cluster would grow manifold and result in overall improvement of those entrepreneurs in the MSE sector. The CFC is technically feasible and economically viable and the SPV will be able to manage the CFC and service the proposed term loan with the scope for its activity in the cluster area.


- Under examination.


- Yet to be placed before the Technical Committee.


In principle Sanction letter of Indian Bank, enclosed as annexure to the DPR

--




(b.) IRR, Payback period 16.17%

(c.) DSCR 7.29


26.67%

(e.) NPV Rs.299.20 lacs --

(f.) DER - --

(g.) Sensitivity Analysis With drop in 5% in Income the IRR will be 13.99% and the DSCR will be 6.11

--

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20.00




Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 10.20 114.65 (2.) Grant-in-aid from Govt. of India 71.62 805.33 (3.) Grant-in-aid from Govt. of 4.84 54.44 (4.) Bank Loan/others 13.34 150.00 Total 100.00 1124.42 8. Shortcomings:- Ø Only letter of allotment submitted along with application. Registered sale deed is required. Ø Consent to establish is required. Ø More than 70% GoI proposed hence status of micro units in the cluster is required.

9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) for Engineering Cluster, Ambattur, Tamilnadu.

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Agenda No. 32.27: Proposal for Soft Interventions in Bamboo made Handicrafts Products, Shankhala, West Tripura, Tripura. Proposal was received from Entrepreneurship Development Institute of India, Vide Online Ref. No:- 0671 / Dated : 03/09/2012 from Entrepreneurship Development Institute of India (Any Other Agency Approved by MSME) & recommended by MSME-DI, Agartala. Details of the proposal are as under: DSR Details DSR Conducted By : Entrepreneurship Development Institute of India

Validated By : Cluster Stakeholders including Director I&C, HHS, Govt. of Tripura & MSME-DI


When Completed : 14/08/2012 Pre-registration Information Name of Applicant : Entrepreneurship Development Institute of India

State : Tripura

District : West Tripura

Cluster Product & Location : Bamboo made Handicrafts Products, Shankhala Brief Information of Cluster Main Product : Bamboo Furniture, Bamboo made Household utilities

Technological details, Pollution angle etc.

The technology used in this cluster is mostly conventional; basically using traditional tool kits. There are no pollution issues because the product is 100% environment friendly.

Age of Cluster : 10

No. of Units : 115



31.00



Presence of association/NGO, Shankhala Handicrafts Cooperative Society, Shankhala, Hezamara

144

Contact details : Block, Sub-div: Mohanpur, West Tripura. Contact person: Sri Manju Debbarma, President, Shankhala Handicrafts Cooperative Society. Phone No: 09856439706.


Creation of awareness and information dissemination about the project and trust building among the cluster members.


The cluster is facing competition from other clusters in North East which have facilities like CFC, marketing support, design centre and availability of technical and other BDS support. They are posing increasing challenges for the units in this cluster. Also lack of networking amongst the cluster actors is affecting its productivity and limiting its growth potential. Here collective effort will not only solve their existing problems but also enable them in tapping enormous growth potential.

Main Problems of Cluster : 1. Inability to upgrade existing technology which affects their productivity 2. No designs development happening leading to market saturation 3. Limited Product variety 4. Lack of professional marketing strategies 5. Problems of quality and standardization 6. Shortage of working capital 7. Limited market development initiatives 8. Limited management expertise and entrepreneurship ability 9. Poor linkages wit


Any other information : Successful implementation of cluster development programme under MSE-CDP can turn around the fortune of this cluster and make it competitive. The cluster stakeholders are ready to pay their contribution for soft and hard intervention under MSE-CDP.





Entrepreneurship Development Institute of India (EDI) will be the Implementing Agency. EDI has about 14 years of experience of cluster intervention. It has established International Centre for Cluster Competitiveness and Growth (IC3G) with the support of DC(MSME), Ministry of MSME, GoI. The Institute is also working as

EDII, Ahmedabad has earlier taken up soft interventions in several other clusters under MSE-CDP.

145



a (i) National Resource Agency (NRA) under Ministry of Textile, GoI, (ii) National Technical Agency (NTA)- under Scheme of Fund for Regeneration of Traditional Industries(SFURTI)


Intervention proposed in the areas of skill, design, quality, productivity, marketing, finance, management and entrepreneurship inputs etc.

Ok.


The DSR has been validated on 27.08.2012 under the Chairmanship of Director, Handloom Handicrafts & Sericulture, Govt. of Tripura, in his office room in the presence of Dy. Director, MSME-DI, Agartala; Dy. Director, DHHS, Govt. of Tripura; Asst. Director(HL), DHHS, Govt. of Tripura and Cluster representatives.

-

Project Cost with break up : Project Cost : Rs. 24.700 GOI Contribution : Rs. 22.230 Cluster Beneficiaries : Rs.2.470

Ok.


1. Bamboo and Cane Development Institute, Agartala. 2. Tripura Handloom and Handicrafts Development Corporation, Agartala. 3. MSME-DI, Agartala 4. DHHS, Agartala.

Ok.

Justification for SI The cluster is facing problems like conventional methods of production, low design development initiative, issues of quality, productivity and standardization, minimum product variety, no market development initiatives, finishing problem with bamboo furniture. Moreover, there are issues

Ok.

146



related to marketing, brand building, shortage of working capital, financial linkages, no BDS support, lack of CFC etc.


Successful implementation of CDP would result in improving turnover, marketing, employment. Will lead to higher quality, productivity, profitability, enhance indigenous design development, facilitate entry into new markets, improve management practices, strengthen financial linkage. They will be facilitated to work like Entrepreneurs. Joint initiatives can ensure holistic development of the cluster. Moreover, establishment of CFC can remove their technological & productivity bottlenecks.

Outcomes may be mentioned in quantitative terms also.


Description Total GOI Association Outcomes 01. Awareness programme on

Cluster development and its benefits

0.80 0.72 0.08 Creation of awareness and information dissemination about the project and trust building among the cluster members.

02. Technology, design mapping and & Workshop on needed technology and design development

1.00 0.80 0.20 To Understand the present process & find out areas of improvement on technology and design.

03. Skill development training on bamboo furniture and bamboo made utilities

1.00 0.80 0.20 20 beneficiaries will be given training on manufacturing of modern trend bamboo furniture and other bamboo made utilities.

04. Advanced Training on finishing process of bamboo handicrafts including furniture

1.00 0.80 0.20 20 beneficiaries will be trained on advance finishing of the products to meet the modern taste.

05. High-end Design development and creation of design pool/bank

1.00 0.80 0.20 Improve knowledge about the modern handicrafts utilities and

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Description Total GOI Association Outcomes for the units and individual artisans

the design pool/bank will help the artisans to produce diversified products

06. Product Standardization and Quality Control

1.00 0.80 0.20 Product standardization will ensure consistency in product quality and maintain standardization.

07. Exposure visit 1.00 0.60 0.40 Learning from best practices and bettor adoption of Cluster Development Strategy

08. a. Network Formation b. Website development and establishing direct market linkages

1.00 0.60 0.40 a. To unite the cluster actors and forming consortium for joint benefits b. Market development and brand building.

09. a. Initiating best management practice and entrepreneurship awareness b. CDCC meeting, Developing Monitoring and Evaluation (M&E) system, publishing newsletter, case study, documentation.

0.20 0.18 0.02 a. (i) The micro units will adopt better management and operating practices (ii) The artisans will be facilitated to work like entrepreneurs. It will improve their level of motivation b. (i) Important decision will be taken and review of performance will improve implementation efficacy. (ii) Information dissemination about the benefits of the cluster development programme (CDP).

Total: 8.00 6.10 1.90 Tripura, being under the special state category (North-eastern region) and Handicrafts Cluster at Shankhala, having the dominancy of ST category people (over 95%), the contribution of Govt. of India (GoI) is requested to be 90% of the total proposed project cost whereas the contribution of the association will be 10% of the total proposed project cost.


148

Agenda No. 32.28: Proposal for conducting Diagnostic Study Report (DSR) of Steel Re-rolling Mills Cluster, Ludhiana, Punjab. Proposal was received from Induction Furnace Association of North India, Vide Online Ref. No:- 0674 / Dated : 07/09/2012 & recommended by MSME-DI, Ludhiana and Director of Industries and Commerce, Government of Punjab. Details of the proposal are as under: Name of Organization : Induction Furnace Association Of North India State : Punjab District : Ludhiana Cluster Name & Location : Steel Re-rolling Mills Cluster, Ludhiana Brief Information of Cluster Main Product : Casting, Steel Ingot and Sarya, Wire Road Technological details, Pollution angle, etc :

Cluster units have no water pollution Problems.

Age of Cluster : 30 No. of Units : 55 Profiles of Units/Category : Micro : 0, Small : 45, Medium : 10 Turnover: (Rs. in Lakhs) 65000.00 Export : (Rs. in Lakhs) 15.00 Employment (Direct/Indirect) : Direct : 25000, Indirect : 15000 Presence of association/NGO, Contact details :

Yes, Induction Furnace Association is working form around Thirty Years.

Main Problems of Cluster : With growing workforce shortage, modernization is a very urgent requirement. Presently tradition technology used in the cluster.

Any other information : Provide clean and safe working environment though cluster units have already taken steps like use of Gas.

Analysis of Proposal Parameters Proposed by Implementation Agency (IA) Implementing Agency, its experience in cluster development

Chief Coordinator, Udyog Sahayak, Department of Industries & Commerce (a Government of Punjab Organization).

Project Cost with break up Rs. 2.50 lakh, inclusive of all expenses Technical Agency to be associated & its expertise

--

Justification for DSR Diagnostic Study will bring out and highlight the various problems and their solution.

Outcomes of conducting DSR With collective efforts units owners solve minor problems to improve quality and taken help from various sources collectively.

Amount Recommended : Rs. 2.50 lakh or actual cost, whichever is less. Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting diagnostic study in Steel Re-rolling Mills Cluster, Ludhiana with GoI grant of maximum Rs. 2.50 lakh or actual, whichever is less.

149

Agenda No. 32.29 (i): Proposal for conducting Diagnostic Study Report (DSR) in Textile Machinery Cluster, Panipat, Haryana. Proposal was received from Directorate of Industries & Commerce, Vide Online Ref. No:- 1068 / Dated : 07/01/2013 & recommended by MSME-DI, Karnal. Details of the proposal are as under: Name of Organization : Directorate of Industries & Commerce State : Haryana District : Panipat Cluster Name & Location : Textile Machinery Cluster, Panipat Brief Information of Cluster Main Product : Textile machinery Technological details, Pollution angle, etc :

The current machinery used by the cluster is conventional i.e. conventional lathe and drilling machines which are not compatible with high level production. So technology advancement is very necessary for uplifting the cluster to the higher level.

Age of Cluster : 40 No. of Units : 50 Profiles of Units/Category : Micro : 45, Small : 5, Medium : 0 Turnover (Per Annum) : (Rs. in Lakhs)

10000.00

Export : (Rs. in Lakhs) 300.00 Employment (Direct/Indirect) : Direct : 500, Indirect : 1500 Women : 500, SC/ST : 0 Presence of association/NGO, Contact details :

Small Engineering Workshop Association

Main Problems of Cluster : Ø Outdated Tool room machinery Ø Unskilled Labour Ø Raw Material Bank

Any other information : Tool room facilities: Typical small tool rooms in the cluster have only conventional machines. Availability of precision equipments in the cluster is very less. Electric Discharge Machining (EDM) & CNC Wire cut: MSE cluster firms do not have access to wire cut and EDMs. Basic EDMs have higher rejection levels in jobs due to poor accuracy while cutting metal. Skill Base: There is also a need for persons with good knowledge of CNC technology and machining parameters for optimum use of the capabilities of machines and equipment. There is need to expose the entrepreneurs in latest developments in Scientific Instruments by organizing visits to trade fairs, encourage their participation in workshops and seminars and practical demonstrations and training.

150

Raw Material Bank: The objective of the Raw Material Bank is to ensure availability of quality raw material on a continuous basis to the Cluster at a reasonable price. The testing facility can also be built for testing of raw materials to ensure consistency in the quality of raw materials.


Investment Promotion Centre, Department of Industries and Commerce, Government of Haryana

Project Cost with break up Rs. 2.50 lakh (maximum) Technical Agency to be associated & its expertise

--

Justification for DSR To define the need for soft activities & hard component for better development of the cluster.

Outcomes of conducting DSR Recommendation of need of soft and hard interventions. Amount Recommended : (Rs. in Lakhs)

Rs. 2.50 lakh or actual cost, whichever is less.

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting diagnostic study in Textile Machinery Cluster, Panipat at a total cost of Rs. 2.50 lakh or actual, whichever is less.

151

Agenda No. 32.29 (ii): Proposal for conducting Diagnostic Study Report (DSR) in Fitness & Surgical Equipment's cluster, Bhiwani, Haryana. Proposal was received from Directorate of Industries & Commerce, Vide Online Ref. No:- 1056 / Dated : 02/01/2013 & recommended by MSME-DI, Karnal. Details of the proposal are as under: Name of Organization : Directorate of Industries & Commerce State : Haryana District : Bhiwani Cluster Name & Location : Fitness & Surgical Equipment's cluster, Bhiwani Brief Information of Cluster Main Product : Hospital Furniture, Gym & Sports Equipment's Technological details, Pollution angle, etc :

The current machinery used by the cluster is conventional i.e. conventional lathe and drilling machines which are not compatible with high level production. So technology advancement is very necessary for uplifting the cluster to the higher level.


2000.00

Export : (Rs. in Lakhs) 200.00 Employment (Direct/Indirect) : Direct : 800, Indirect : 2000 Presence of association/NGO, Contact details

No information available

Main Problems of Cluster : Skill Manpower, Intricate design for tools Any other information : Tool room facilities: Typical small tool rooms in the cluster

have only conventional machines. Availability of precision equipments in the cluster is very less. Electric Discharge Machining (EDM) & CNC Wire cut: MSE cluster firms do not have access to wire cut and EDMs. Basic EDMs have higher rejection levels in jobs due to poor accuracy while cutting metal. Skill Training: There is also a need for persons with good knowledge of CNC technology and machining parameters for optimum use of the capabilities of machines and equipment.



152

Parameters Proposed by Implementation Agency (IA) Project Cost with break up Rs. 2.50 lakh (maximum) Technical Agency to be associated & its expertise

--




Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting diagnostic study in Fitness & Surgical Equipment's cluster, Bhiwani at a total cost of Rs. 2.50 lakh or actual, whichever is less.

153

Agenda No. 32.29 (iii): Proposal for conducting Diagnostic Study Report (DSR) in Plastic Multi Product Cluster, Bhiwani, Haryana. Proposal was received from Directorate of Industries & Commerce, Vide Online Ref. No:- 1059 / Dated : 02/01/2013 & recommended by MSME-DI, Karnal. Details of the proposal are as under: Name of Organization : Directorate of Industries & Commerce State : Haryana District : Bhiwani Cluster Name & Location : Plastic Multi Product Cluster, Bhiwani Brief Information of Cluster Main Product : Mono filament, HDPE yarn, Poly Propylene Spun bond Technological details, Pollution angle, etc :

The cluster is facing a serious problem in terms of skilled manpower. There is no consistency in the quality of raw materials leading to lot of wastage. Lack of modern Technology uptake in making dies & moulds.


40000.000

Export : (Rs. in Lakhs) 5000.000 Employment (Direct/Indirect) : Direct : 2000, Indirect : 5000

Women : 500, SC/ST : 0 Presence of association/NGO, Contact details :

Technological Institute of Textile & Sciences

Main Problems of Cluster : Ø Lack of skilled manpower Ø Lack of modern Technology uptake in making dies &

moulds Ø No consistency in the quality of raw-materials

Backward and Forward linkages Ø Raw Material Identification.

Any other information : Tool room facilities: Typical small tool rooms in the cluster have only conventional machines. Availability of precision equipments in the cluster is very less. Electric Discharge Machining (EDM) & CNC Wire cut: MSE cluster firms do not have access to wire cut and EDMs. Basic EDMs have higher rejection levels in jobs due to poor accuracy while cutting metal. Raw Material Bank: The objective of the Raw Material Bank is to ensure availability of quality raw material on a continuous basis to the Cluster at a reasonable price. The testing facility can also be built for testing of raw materials to ensure consistency in the quality of raw materials.

154


Parameters Proposed by Implementation Agency (IA) Implementing Agency, its experience in cluster development



--


Outcomes of conducting DSR Recommendation of need of soft and hard interventions. Amount Recommended : (Rs. in Lakhs) Rs. 2.50 lakh or actual cost, whichever is less. Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting diagnostic study in Plastic Multi Product Cluster, Bhiwani at a total cost of Rs. 2.50 lakh or actual, whichever is less.

155

Agenda No. 32.29 (iv): Proposal for conducting Diagnostic Study Report (DSR) in Scientific Instruments Cluster, Ambala, Haryana. Proposal was received from Directorate of Industries & Commerce, Vide Online Ref. No:- 1062 / Dated : 02/01/2013 & recommended by MSME-DI, Karnal. Details of the proposal are as under: Name of Organization : Directorate of Industries & Commerce State : Haryana District : Ambala Brief Information of Cluster Main Product : Microscopes, Projectors, Glass Ware Technological details, Pollution angle, etc. :

There is need to expose the entrepreneurs in latest developments in Scientific Instruments by organizing visits to trade fairs, encourage their participation in workshops and seminars and practical demonstrations and training. To cater to higher levels the Cluster lacks appropriate facilities for testing of instruments and testing & calibration of testing equipment. There are many new technologies which are not available to the cluster enterprises mainly due to their capital intensive nature

Age of Cluster : 150 No. of Units : 2577 Profiles of Units/Category : Micro : 0, Small : 2569, Medium : 8 Turnover (Per Annum) : (Rs. in Lakhs) 70000.00

Export : (Rs. in Lakhs) 15000.00 Employment (Direct/Indirect) : Direct : 10000, Indirect : 30000 (Women : 1000, SC/ST : 0) Presence of association/NGO, Contact details :

Ambala Scientific Instrument Manufacturers Association Science Apparatus Manufacturers Association

Main Problems of Cluster : • Productivity • Skill Base • Testing Facilities • Technology

Any other information : Ambala Cluster is the hub of Scientific Instruments Industry in India and has so far been free from competition in domestic market but the industry of scientific instruments has started to come up in other parts of the country, especially in Chennai which will give the Cluster stiff competition. Another challenge in domestic market is liberalization of economy due to which imports are free and easier and countries like China are in a position to challenge the Ambala Industry due to economies of scale.

156





--




Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting diagnostic study in Scientific Instruments Cluster, Ambala at a total cost of Rs. 2.50 lakh or actual, whichever is less.

157

Agenda No. 32.30: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Agriculture Implements Cluster, Karnal, Haryana. Proposal was received from Directorate of Industries & Commerce, Vide Online Ref. No:- 1112 / Dated : 21/01/2013 & recommended by MSME-DI, Karnal.

1. Basic Information of Cluster

Name of Cluster : Agriculture Implements Cluster

Location of Cluster : HSIIDC Estate Sector 3 Karnal

Main Product : Disc Plough, Mould Board Plough


Micro: 73 Small : 0 Medium : 0


2007-2008 - 332 2008-2009 - 381 2009-2010 - 430 2010-2011 - 540 2011-2012 - 650


2007-2008 - 80 2008-2009 - 100 2009-2010 - 120 2010-2011 - 135 2011-2012 - 150

Employment in Cluster : Total number of employment with 73 units is 2200.Therefore average manpower per unit is 33. (Total 2200 directly employed in MSE units and 5800 indirectly employed) Total around 8000 direct or indirect employment. directly

Technology Details : Typical small tool rooms in the cluster have only conventional lathes, milling, shaper and surface grinder; very few units have even 3 axis equipment; Activities related to wire cut EDM, VMC etc. are pursed only by a few large units (for captive use) Mainly small and micro units accept test certificate from the suppliers and rely on them. Few units use very simple instruments like slip gauges, vernier callipus etc.

Whether DS Conducted : The DSR has been conducted in 2005.

Main findings of DSR : The critical findings may be viewed in terms of unfavourable value-chain circumstances in terms of tool room facilities, testing of raw material and finished products etc.

158

Main Problems of Cluster : Typical small tool rooms in the cluster have only conventional lathes, milling, shaper and surface grinder, drill and a traub machine (in pipe cutting units); very few facilities have even 3 axis equipment. Activities related to wire cut, EDM, VMC etc. are pursed only by a few large units (for captive use). Availability of precision equipments in the cluster is very less. Electric Discharge Machining (EDM) & Wire cut: MSE cluster firms do not have access to wire cut and EDMs. Basic EDMs have higher rejection levels in jobs due to poor accuracy while cutting metal. Presently, many wire EDM jobs have to be outsourced to Ludhiana and Faridabad. Evidently, there are also gaps in terms of testing facilities both for raw material and finished products. Raw material for the production needs testing in terms of chemical composition, hardness, finish, geometrical dimension and micro structure. The entrepreneurs are not aware of the methods procedures adopted for inspection of their raw material. Also to handle competition from international counterparts, the cluster firms need to sell standardized and tested products. Therefore, a testing facility is necessary for overall quality improvement of products. The diagnostic study also mentions improvement in manufacturing process and quality plans as CFC interventions. Local non-availability of sufficient casting parts and moving parts like gears/shafts and sub assemblies. No structured system of quality control exists.

Other Information : Unscientific method of heat Treatment of tooling. Problems with quality, aesthetics & finish (Consistency). No skill development training programme / facility for workers in the pipeline. Cluster usually depends on under qualified Tool and Die makers having no facility / Ability to upgrade their knowledge for newer materials and techniques.



(a.) Justification for CFC The establishment of CFC will bring out the following impacts Annual growth rate of the cluster to increase from 20 percent to at least 30 percent and increase in cluster output by 200

--

159


percent in the next 5 years (to Rs.2000 crores). Higher degree of competitiveness of cluster enterprises vis a vis medium and large sized enterprises in competing clusters progressively catering more demand from local industry and increased exports turnover with an aim to capture at least 12 percent of global market share. Scope for the cluster to develop higher degree of quality and productivity by deploying appropriate technology and equipment. There will be an increase in direct employment provided by cluster firms at least by 10 to 12 percent more from 2200 persons to 3000. The wastage would decrease from current 2 percent to 1 percent resulting in efficiency in the production process. Better quality, accuracy, surface finish and economical tool will add more life to the tool which will benefit the customer and in turn enhance the profitability of the cluster. Encourage transition of cluster firms into catering to the needs of large industrial consumer (and hitherto untapped) requirements. The integrated equipment envisaged in the CFC may be utilized by MSE across surrounding districts of Karnal. Therefore the envisaged common facility has a mandate of regional development extending beyond the boundaries of the cluster.

(b.) Location of CFC The facility is proposed to be located in Karnal, dist. Karnal.

Exact location of proposed CFC is required.


0 -


0 -

(c.) Land for CFC

i. Whether land acquired Agreement for purchase of land has been entered into by the Registered Cooperative Society.

Land should be registered in the name of SPV.

ii. Title is in name of KAIMA Common Facility Centre (Regd) Land document is

160


required.


Total cost of land is 38 lakh which is inclusive of site development.

--

iv. Land is sufficient Yes, it is sufficient. --

v. Change of land use It will used only for CFC. --


It will used only for CFC. --


There is no lease. --


450 sq.mt --


Building & Civil works Rs. 81.64 lakhs --


The main facility in terms of tool room and testing lab.

--

(g.) Prod capacity of CFC Please Refer to Annexure 12 i.e. Requirement of facilities Evidence of Demand

Installed capacity of CFC is required.


Growth rate of the cluster is likely to increase from 20 percent to at least 30 percent. Cluster output may increase by even 200 percent in the next 5 years (to around Rs. 2000 crore) Graduation of firms into producing standardized and advanced equipments; products will enhance export market share and turnover and mitigate the threat from international players entering the domestic market. There will be saving of approx. 20 percent in scrap loss from raw material Increase in direct employment by at least 10-12 percent. The project could evolve into a demonstration model project to enhance sustainability orientation of micro enterprise led agri implements clusters in the country.

Deliverables should be in terms of turnover, export & employment generation with time limits.


No certificate is required so far. Consent to establish is required.

(j.) Man Power in CFC 30 nos.

(k.) Revenue generation --

161


mechanism for sustainability of assets(service/user charges to be levied, any other-to be specified)



(a.) Name and Address The project is to be implemented on public private partnership schema through an Registered Cooperative society KAIMA Common Facility Centre (Regd).

Address:- Plot no. 111, Sector-3, HSIIDC Indl. Estate, Karnal-132001


Registered Cooperative society KAIMA Common Facility Centre (Regd.)

Registered under Society Act 1860


Mr. T.L. Satyaprakash, State Govt. Mr. Vijay Kumar, MSME

Provision of inclusion of one each MSME and State Govt. officer is given in bye laws.


20th July 2011 --



Yes --


0 --


0 --

(i.) Shareholding Pattern Please refer to Table 10 Page no 39 --


Refer to Annexure 12 i.e. Format of agreement towards payment of user charges and requirement of facilities by SPV members Evidence of demand

State Govt. and SPV commitment regd. contribution is required.

(k.) SPV specific A/c The Account of SPV is in Punjab National Bank.

Account no. is required.

162



Refer to Annexure 4 i.e. Support documentation on track-record of pro-active and co-operative initiatives

Soft interventions undertaken under MSE-CDP.

(m.) Technical Institution Kurushetra University. --


Refer to Annexure 12.Requirement of facilities Evidence of Demand

--

(o.)


Fixed monthly connection charge (minimum connected load) (80 kVA at Rs.120/kVA) i.e. 1.15 lakh per annum; Variable charges =( Rs.47104 per month) i.e 5.65 lakhs/annum

--

(b) Water 0.38 lakh per annum --

(c) Gas/Oil/Other Utilities All that is computed in consumables. Please refer to Table 16, page no-54

--



(a.) Implementing Agency Investment Promotion Centre, Directorate of Industries and Commerce Government of Haryana

As per guidelines

(b.) Fund receiving Agency Investment Promotion Centre, Directorate of Industries and Commerce Government of Haryana


163




According to the new tier of approach by government, the DPR will be first technically appraised by DC MSME and after that it will go to SIDBI. The DPR has been already submitted to DC MSME office.

SIDBI appraisal is required.


Under examination.


Yet to be placed before Technical Committee.


The comments of Cluster Development division will be there after approval from DC MSME and SIDBI.

--


The working capital margin of Rs. 1.86 lakh is to be approved by Punjab National Bank.

--

5. Financial Analysis of CFC Description Proposed by Implementation Agency


(a.) BEP 51.09 percent As per guidelines

(b.) IRR, Payback period 14.01 percent and 2 year 2 months -

(c.) DSCR 70.70 percent No bank loan is proposed.


18.32 percent 25% ROCE is desirable.

(e.) NPV NPV is positive and high (Rs. 323.00 lakh) at a conservative project life of 10 years

-

(f.) DER NA -

(g.) Sensitivity Analysis Done. -

164











Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 8.49 71.38 (2.) Grant-in-aid from Govt. of India 10.00 685.55 (3.) Grant-in-aid from Govt. of 81.51 84.10 Total 100.00 841.03 8. Shortcomings:- Ø Exact location of proposed CFC is required; Land should be registered in the name of SPV; Ø Installed capacity of CFC is required. Ø Deliverables should be in terms of turnover, export and employment generation with time

limits. Ø Consent to establish from Pollution Control Board is required. Ø State Govt. and SPV commitment regd. contribution is required. Ø Bank Account no. of SPV is required. Ø Implementation period should be 24 months from the date of final approval. Ø SIDBI appraisal is required; DSCR is 70.70, however, No bank loan is proposed. Ø ROCE is 18.32 % as per guidelines 25% is desirable. Ø Preliminary and Pre-operative cost should be 2% of PC. Ø DSR was conducted about 08 years back – Details of units are required. Ø Only 8.49% SPV contribution is proposed, 10% SPV contribution is must as per guidelines.

9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) for Agriculture Implements Cluster, Karnal, Haryana.

165

Agenda No. 32.31: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Pharmaceuticals Cluster, Karnal, Haryana. Proposal was received from Directorate of Industries & Commerce, Vide Online Ref. No:- 1009 / Dated : 17/12/2012 & recommended by MSME-DI, Karnal. 1. Basic Information of Cluster

Name of Cluster : Pharmaceuticals Location of Cluster : HSIIDC Estate, Sector- 3, Karnal Main Product : Pharmaceuticals products(Allopathic & Ayurvedic) No. of Enterprises including break up (micro, small, medium) :

Micro :70 Small : 0 Medium : 0


2006-2007 – 120.00 2007-2008 – 141.00 2008-2009 – 166.00 2009-2010 – 196.00 2010-2011 – 230.00


2006-2007 – 12.00 2007-2008 – 50.00 2008-2009 – 30.00 2009-2010 – 40.00 2010-2011 – 50.00

Employment in Cluster : 700 in the case of Allopathic units; and 300 in the case of Ayurvedic units (Total 1000 directly employed in MSE units) and 5000 indirectly employed)

Technology Details : There is absolute dearth of testing facilities for Pharmaceutical companies in Karnal and neighbouring areas. Currently micro units located in the cluster use testing facilities located in Delhi and NCR increase the lead time in production by 3-4 days and increase in production costs due to wastage of raw materials. The production costs also increase on account of increased logistics costs. The Government of India has made it mandatory for Pharmaceutical manufacturing companies to test their products in GLP labs. These gaps affect the quality of the product and affect the consignment delivery. Absolute dearth of research and formulation development.

Whether DS Conducted : The DSR was conducted in 2010-11. Main findings of DSR : The important findings encapsulated in the DSR may be

viewed in terms of gaps in the, testing lab facilities, and on the Research and Development front.

Main Problems of Cluster : Different types of tests are required to ensure the quality of raw material as well as end product. The major laboratory machines proposed in the testing lab are UV Spectrophotometer IR Machine Gas Chromatography

166

machine HPLC Karl Fischer Titrimeter Melting Point Apparatus Boiling Point Apparatus Refract meter Polarimeter Hot Air Oven Stability Chamber Laminar Air Flow Incubator and BOD incubator. These are the equipments required in a testing laboratory certified under GLP guidelines for Pharmaceuticals industry. Deploy Pilot scale machines for manufacture of Tablets Capsules Ointments Injections and Syrups. These equipments will facilitate development of new formulations and capsules in small batches. This will lead to the units in the cluster developing patents widen the range of products produced in the region and increase the market share and enhance exports.

Other Information : Strong market development efforts will have to be made as there is stiff competition from already existing competitors as well as new entrants Rising input costs and relatively stagnant market prices for finished products Unable to individually reap scale economies on various fronts (procurement, marketing and technology upgrading)




(a.) Justification for CFC The establishment of CFC will bring out the following impacts With regard to the testing lab, the Union ministry of health has notified the Schedule under Drugs and Cosmetics Third Amendment Rules 2008 giving the pharmaceutical industry a pre-defined time limit for compliance and adoption of Good Laboratory Practices. All Pharmaceutical companies have to adhere to these guidelines prescribed. This has made it a necessity for Micro units in Karnal to set up a Testing lab with adherence to GLP guidelines. The testing facility will reduce the lead time required for batch wise testing of raw materials and for finished products and ensure minimum wastage of input materials, consumables and finished goods that get rejected due to negative test reports. Apart from GLP, there are other stringent regulatory requirements prescribed by international

167



drug regulatory institutions for their respective countries. Lack of a state of the art facility for testing limits the access of cluster members to these markets. The proposed CFC would result in significant improvement in product output with better marketability, access to overseas markets quality assurance as per international standards and also faster manufacturing cycle leading to capacity augmentation. Cluster MSEs will move up the value chain into higher value added pharmaceutical products by means of appropriate testing lab equipments. Lastly, the proposed CFC shall also facilitate capacity building of cluster firms by acting as a centre of excellence and expansion in product portfolio by facilitating pilot salt development and adoption of newer products with increasing demand in the market. The proposed CFC shall facilitate cluster firms getting access to state of the art infrastructure apparatus in a controlled environment with right expertise

(b.) Location of CFC The CFC is proposed to be located in Karnal, dist. Karnal.


0


0

(c.) Land for CFC

i. Whether land acquired Agreement for purchase of land has been entered into by the SPV.

Registered sale deed of land (in the name of SPV) is required.

ii. Title is in name of CFC Pharma Cluster Private Limited

iii. Valuation and its basis Land (Rs.45 Lakh) and site development (@ Rs.3 Lakh).

iv. Land is sufficient Yes. the land is sufficient.

v. Change of land use The land will be used only for CFC

168



vi. If on lease, duration of lease There is no lease

vii. Whether lease is legally tenable

There is no lease

(d.) Total Building area(sq ft) Building and civil works (testing lab area of 12926.59 sq.ft. @ Rs.620 per sft.)


Building and civil works (testing lab area of 12926.59 sq.ft. @ Rs.620 per sft.)

(f.) Main Facility Proposed The main facility proposed in terms of critical technology, regulatory compliance and value chain gaps in testing lab in compliance with GLP norms.


Installed capacity of CFC is required.

(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.)

The CFC could help not sustainability of cluster firms but also double capacity utilization and profitability and penetrate premium market segments Profitability orientation of cluster firms is expected to double by producing high value pharmaceuticals, developing new patents The CFC could enable increase in employment by about 2000 persons. There is an expected turnover rise to Rs.460 crore during 2016-17 from the existing turnover of Rs.230 crore for the period 2011-12 The pharmaceutical firms in the cluster seen to apply and adhere to the highest standards of laboratory practice gain them significant competitive advantage and will compete successfully for business and recognition within its operational environment

The deliverable of CFC should be in terms of employment generation, export with time limit.


No certificate is required. Consent to establish is required.

(j.) Man Power in CFC 19 Nos.

(k.) Revenue generation mechanism for sustainability of assets (service/user charges to be levied, any other-to be specified)

Please Refer to Table 27 Page no. 55 Total 120 samples per day proposed. Details in respect of each test are required.

169




(a.) Name and Address CFC Pharma Cluster Private Limited


It is a company i.e. CFC Pharma Cluster Private Limited


Mr. T.L. Satyaprakash... State Govt. Mr. Vijay Kumar.... MSME

Provision should be made in bye laws.

(d.) Date of formation of SPV 21st February, 2012.

(e.) Number of Members 26.


Yes

(g.) Authorized Share Capital 1 lakh

(h.) Paid up capital Fifty Thousand

(i.) Shareholding Pattern Please refer to Table 11. Page no-34



Commitment letter for contribution is required.

(k.) SPV specific A/c The Account of SPV is in Punjab National Bank.

A/c no. is required.



Nothing enclosed with Annexure 4.

(m.) Technical Institution The technical institution is Kureshetra University.

No evidence.


Refer to Annexure 12. Requirement of facilities Evidence of Demand

Only one member commitment enclosed.

O. Please refer to Table no-20, Page-

170




49,50. Fixed monthly connection charge (minimum connected load) is Rs.1.01 lakh, Variable charge Shop floor as well as administrative facilities ( 0.39 lakh /month)

(b) Water Rs.0.108 lakh per annum.


4. Implement Arrangements




As per guidelines.


(c.) Implementation Period 12 months Should be 2 years form date of final approval.


According to the new tier of approach by government, the DPR will be first technically appraised by DC MSME and after that it will go to SIDBI. The DPR has been already submitted to DC MSME office.



Still to be done. Under examination.


Still to be done. Yet to be placed before Technical Committee.


The comments of Cluster Development division will be there after approval from DC MSME and SIDBI.

--


The working capital margin of Rs. 2.01 lakh is to be approved by Punjab National Bank.

In-principle sanction is required.

171




(a.) BEP 34.71 -- (b.) IRR, Payback period Over 18.43 per cent. 2 years 3 months -- (c.) DSCR Not Applicable (non-availing of term loan

in this project). --


Av. ROCE (PAT/CE) sans grant 13.66 percent Av. ROCE (PAT/CE) with grant 80.47 percent

25 % ROCE is desirable.

(e.) NPV NPV is positive and high (Rs.462.12 lakh) at a conservative project life of 10 years

--

(f.) DER NA -- (g.) Sensitivity Analysis Done --


Particulars Total Cost (Rs. in Lakh) (1.) Land and its Development 48.00 (2.) Building and other Civil Constructions 80.14 (3.) Plant & Machinery(including electrification) 951.06 (4.) Misc. fixed assets 20.00 (5.) Preliminary & Pre-operative expenses, maximum 2% of project cost

46.01

(6.) Contingency (2% building and 5% on plant and machinery) 49.16 (7.) Margin money for Working Capital 2.01 Total Project Cost 1196.38

7. Means of Finance: The suggested means of finance are as follows:

S. No. Particulars %age Amount (Rs. in lakh) 1 SPV contribution 4.86 58.13 2 Grant-in-aid from Govt. of India 85.14 1018.62 3 Grant-in-aid from Govt. of Haryana 10.00 119.64 Total 100.00 1196.38

8. Shortcomings:- Ø Registered sale deed of land (in the name of the SPV), Ø Installed capacity of the CFC, Ø Consent to establish from Pollution Control Board are required;

172

Ø The deliverable of CFC should be in terms of employment generation, export with time limit; Total 120 samples per day proposed, details in respect of each test are required.;

Ø Provision should be made in bye-laws regd. state Govt. and MSME officials in SPV; Ø Commitment letter for contribution from SPV & State Govt. Ø Bank A/c no. are required; Ø In-principle approval for working capital is required; Ø 25% ROCE is desirable as per guidelines. Ø Only 4.86% SPV contribution proposed. As per guidelines, 10% SPV contribution must. Ø Details of cluster units are required.

9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) in Pharmaceuticals Cluster, Karnal, Haryana.

173

Agenda No. 32.32: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Readymade Garment Cluster, Village Mohammadpur, Gurgaon, Haryana. Proposal was received from Department of Industries & Commerce, Vide Online Ref. No:- 1095 / Dated : 16/01/2013 & recommended by MSME-DI, Karnal. 1. Basic Information of Cluster Name of Cluster : Readymade Garment Cluster

Location of Cluster : Village Mohammadpur, Gurgaon

Main Product : Readymade garments like men's T-Shirts, Knitted Sh




2006-2007 - 9380 2007-2008 - 10200 2008-2009 - 11122 2009-2010 - 11960 2010-2011 - 13000


2006-2007 - 7676 2007-2008 - 8529 2008-2009 - 9477 2009-2010 - 10530 2010-2011 - 11700

Employment in Cluster : Total direct employment 2,35,000 and both directly and indirectly employed around 3,90,000

Technology Details : With respect to many smaller firms, fabric inspection equipment which helps identify an evenness in colour/shade, non-use of CAD equipment to cut fabric with minimum fabric wastage is not currently used. This affects fabric quality used and increases wastage. With respect to many small firms, 2-needle lock stitch machines or chain-stitch machines are not used. This affects productivity and finish in the case of stitching some products. Many smaller printing units do not have sublimation and digital printing; many smaller embroidery enterprises do not have advanced technology embroidery equipment with electronic sensor to monitor the thread movement which stops stitching immediately if the thread is broken, and saves embroidery portion in memory If the machine has to stop embroidery operations due to power cuts etc. hence quality of embroidery and productivity is affected. Also many smaller embroidery units do not have sequin device for more expressive designs. Finishing Typically, many SME and large firms

174

have washing and finishing equipment in term of washing machines, hydro extractor and tumble driers however, lack in terms of continuous tumble drier. International customers are particularly stringent in their requirement for fabric finish and dimensional stability of the fabrics used in manufacturing of garments. Owing to the limitation in technology in Indian processing houses cannot consistently supply fabrics with such finish and dimensional stability which leads to quality issues and can lead to rejection by customers. The lager factories have in-house laundries which is an expensive way of solving this problem. Fabric is normally selected from different suppliers depending on the buyer specifications, order size and other related parameters. Such fabric has to be tested for colour fastness fading properties/colour fastness to sunlight, abrasion etc. which could take 8 to 20 hours each due to capacity gaps in existing labs if it takes 8 to 10 days. This time lag is doubled for 30 per cent rejection rates when new production fabric is tested. Due to inadequate capacity and time lags, may of the smaller players (e.g. printing units) find it difficult to undertake tests on regular batch wise basis. This occasionally leads to even rejection of shipments Inadequate testing facilities in labs in the cluster for testing of many products under the Restrictive substance list etc.; and often samples from here have been sent to Hong Kong, Singapore and Chennai for Testing. This leads to time lag of even 10 days for 1 days testing jobs delaying the shipments and sometimes imposing huge damages to the exporters

Whether DS Conducted : The DSR has been conducted in December 2011.

Main findings of DSR : The important findings encapsulated in the DSR may be viewed in terms of gaps in the testing lab facilities, and on the finishing front. These gaps are evidently constraints that merit establishment of relatively capital-intensive equipment. Appropriate interventions could enable better and batch wise testing of fabrics. Fabric is normally selected from different suppliers depending on the buyer specifications, order size and other related parameters. Such fabric has to be tested for colour fastness; fading properties/colour fastness to sunlight, abrasion etc. which could take 8-20 hours each due to capacity gaps in existing labs if it takes 8-10 days. This time lag is doubled for 30 per cent rejection rates when new production fabric is tested. Due to inadequate capacity and time lags, may of the smaller players find it difficult to undertake tests on regular batch wise basis. This occasionally leads to even rejection of shipments. Inadequate testing facilities in labs in the cluster for testing of many products under the Restrictive substance list etc. and often samples from here have been sent to Hong Kong, Singapore and Chennai for Testing. This leads to time lag of even 10 days for 1 day testing jobs delaying the shipments and sometimes imposing huge damages to

175

the exporters This also results in huge wastage of raw materials and often the entire lot has to be discarded after receiving the test reports. While exporting the apparels to Europe and USA, the manufactures have to be in compliance with Consumer Product Safety Improvement Act and Registration, Evaluation, Authorisation and Restriction of Chemicals norms. The CPSIA imposes new testing and documentation requirements, and sets new acceptable levels of several substances when it comes to use of non hazardous or banned chemicals. Similarly, REACH also addresses the continued use of chemical substances of very high concern because of their potential negative impacts on human health or the environment. If the total quantity used is more than one tonne per year and the SVHC is present at more than 0.1 percent of the mass of the object, then they pass the notification to the concerned manufacturers. The testing lab currently present in the vicinity does not have the facility to detect those minute banned chemicals. There is also need for upgrading the techniques in terms of finishing front. Typically, many SME and large firms have washing and finishing equipment in term of washing machines, hydro extractor and tumble driers however, lack in terms of continuous tumble drier. There are no latest and upgraded finishing facilities present in the vicinity of Gurgaon and the closest city you can find these machines is Ludhiana which is far away leading to time, cost, and coordination delays. International customers are particularly stringent in their requirement for fabric finish and dimensional stability of the fabrics used in manufacturing of garments. Owing to the limitation in technology in Indian processing houses cannot consistently supply fabrics with such finish and dimensional stability which leads to quality issues and can lead to rejection by customers. The lager factories have in-house laundries which is an expensive way of solving this problem.

Main Problems of Cluster : Due to inadequate capacity and time lags, may of the smaller players e.g. printing units find it difficult to undertake tests on regular batch wise basis. This occasionally leads to even rejection of shipments. Inadequate testing facilities in labs in the cluster for testing of many products under the Restrictive substance list etc.and often samples from here have been sent to Hong Kong, Singapore and Chennai for Testing. This leads to time lag of even 10 days for 2 days testing jobs delayed the shipments

Other Information : With power not available several hours a day, 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. limited linkages with Financial institutions

176


Cluster Division

(a.) Justification for CFC Better finish will reduce shrinkage/wastage of the fabric by about 5 per cent and in net value accruals by even 50 per cent. Finishing with the equipment will reduce shrinkage/wastage of the fabric by 5 per cent. The Enterprises move up the value-chain through lesser rejections, better quality, time saving, cost benefit, better finish etc. The use of latest finishing equipments will allow cluster members to use more sophisticated fabrics not being used because of problems of ensuring dimensional stability. Due to state of art testing lab, the lead time will be reduced considerably in from 10-20 days to hardly 2-3 days which could help capture retain new large brands like Louis Vuitton and also discovering new markets like japan. The proposed CFC would result in significant improvement in product output with better marketability, access to overseas markets, quality assurance as per international standards and also faster manufacturing cycle leading to capacity augmentation. Cluster MSEs will move up the value chain into higher value added readymade garments by means of appropriate testing lab and finishing equipments. The project could evolve into a demonstration model project to enhance sustainability orientation of RMG clusters in the region and country. Foster co-operative efforts amongst cluster enterprises as to help them reap the benefits of joint-action in terms of establishing critical industrial infrastructure, pursuing joint procurement and marketing and tapping the domestic market and the diversifying towards the export front. While 29 members are already directly contributing by way of equity to the project and will be beneficiaries, at least 20 per cent of the capacity of the CFC will be reserved for use by non-members at the same usage charge, benefiting all micro-sized enterprises in the cluster The proposed CFC shall facilitate cluster firms getting access to state of the art infrastructure apparatus in a controlled environment with right expertise.

--

177


(b.) Location of CFC The facility is proposed to be located in Gurgaon. CFC is proposed in rented premises.


0 --


0 --

(c.) Land for CFC

i. Whether land acquired The letter of consent has also been provided by one of the members of SPV for leasing premises. The

Registered Lease deed is required for duration of at least 15 years.

ii. Title is in name of The title is in the name of SPV --


Land and Buildings (including civil works) Rs. 50 lakhs

No details of proposed premises are available.

iv. Land is sufficient Yes the land is sufficient. --

v. Change of land use The land will be used only for CFC --


The land is on lease of 10 years. The letter of consent has also been provided by one of the members

--


No. No


30000 sf.ft --


The building is already there. Building and civil works will cost around RS.50 lakhs

Rented premises.


Finishing and Testing --

(g.) Prod capacity of CFC The production capacity of CFC will be 80 per cent Installed production capacity of each facility is required.

(h.) Major Outputs/Deliverables of CFC, Projected

Better finish will reduce shrinkage/wastage of the fabric by about 5 per cent and in net value accruals by even 50 per cent. Reduced lead time in

Deliverables should be in terms of increase in

178


performance of the cluster after proposed intervention (in terms of production, export/domestic sales and direct/indirect employment, etc.)

currently from 10-20 days to hardly 2-3 days could help capture retain new large brands like Louis Vuitton and also discovering new markets like Japan. Contribute to increase in employment by about 60%. Products under the Restrictive substance list will be now tested for which earlier the samples needs to be sent to Chennai or sometimes to Hong Kong and Singapore Moving up the value chain by able to offer specialised high value products requiring extensive testing and finishing, thus enabling moving up the value chain from a stage wherein the cluster is facing stiff competition from countries like Bangladesh and Philippines. Increase in direct employment by at least 20% from 3, 90,000 persons to 4, 68,000.

turnover, export and employment with time limits.


No, it is not required. Consent to establish is required.

(j.) Man Power in CFC Please refer to Page 58, Table 18 and 19 --


Please refer to Page 66, Table 27 Detailed revenue generation from each proposed activity is required.

3. Information about SPV Description Proposed by

Implementation Agency (IA) Comments by Cluster Division

(a.) Name and Address Gurgaon Garment Cluster Services Private Limited, Gurgaon

Address:- Village Mohammadpur Khandsa Road, PO Narsinghpur, Gurgaon- 122002


Gurgaon Garment Cluster Services Private Limited

Pvt. Ltd. Company under the Companies Act 1956 (No. 1 of 1956)


SH. T L Satyaprakash SH.Vijay Kumar

--


23rd August,2012 --

179





It has been submitted Given


Rs. 10 lakh --


Pending --

(i.) Shareholding Pattern Please refer to table 11 page 42

Proposed shareholding pattern given. Actual shareholding required.


Pending SPV commitment regd. their contribution is required.

(k.) SPV specific A/c Pending SPV should open bank account


Please refer to chapter 4 and annexure 4

No enclosure with Annex-4

(m.) Technical Institution Pending SPV should sign MoU with specialise technical institute.


Please refer to Annexure 12 Evidence of demand should be supported with individual letters.

(o.)


500 kw which is fixed load. Please refer to Page 59

--

(b) Water Please refer to Page 60 165000 liters/day

(c) Gas/Oil/Other Utilities No --

180

4. Implement Arrangements Description Proposed by

Implementation Agency (IA)


(a.) Implementing Agency Investment Promotion centre As per guidelines

(b.) Fund receiving Agency Investment Promotion centre



Technical Appraisal still to be done.

SIDBI appraisal required.


Still to be done Under examination.


Still to be done Yet to be placed before Technical Committee.


Still to be done --


Rs.11.91 lakhs. In-principle sanction letter not enclosed.


Description Proposed by Implementation Agency

(IA)


(a.) BEP 42.78 As per guidelines

(b.) IRR, Payback period 22.32 and 2 years 2 months --

(c.) DSCR 4.27 --


41.54 Av. ROCE (PAT/CE)without grant- 14.60% Av. ROCE (PAT/CE)with grant- 41.54% As per guidelines, the ROCE is 25% desirable, incorporating benefit of grant-in-aid.

(e.) NPV Rs.860.41 lakhs --

(f.) DER No --

181

(g.) Sensitivity Analysis Done -- 6. Total Cost : The total cost of the CFC is as follow:










Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 24.32 372.67 (2.) Grant-in-aid from Govt. of India 68.51 1050.00 (3.) Grant-in-aid from Govt. of Haryana 7.17 109.95 (4.) Bank Loan/others 0.00 0.00 Total 100.00 1532.61 8. Shortcomings:- Ø CFC is proposed in rented premises; Registered Lease deed is required for duration of at least

15 years; No details of proposed premises are available; Installed production capacity of each facility is required.

Ø Deliverables should be in terms of increase in turnover, export and employment with time limits.

Ø Consent to establish from Pollution Control Board. Ø Detailed revenue generation from each proposed activity. Ø SPV commitment regd. their contribution is required. Ø SPV should open bank account. Ø Evidence of demand should be supported with individual letters. Ø In-principle approval of working capital not enclosed; Av. ROCE (PAT/CE) without grant-

14.60% & Av. ROCE (PAT/CE)with grant- 41.54% - as per guidelines, the ROCE is 25% desirable, incorporating benefit of grant-in-aid- Needs clarification.

Ø Details of cluster units are required.

182

9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) in Readymade Garment Cluster, Village Mohammadpur, Gurgaon, Haryana.

183

Agenda No. 32.33: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Stainless Steel Cluster, Kundli, Sonepat, Haryana. Proposal was received from Department of Industries & Commerce, Vide Online Ref. No:- 0808 / Dated : 19/10/2012 & recommended by MSME-DI, Karnal. 1. Basic Information of Cluster Name of Cluster : Stainless Steel Cluster

Location of Cluster : HSIIDC Industrial Area

Main Product : Stainless Steel




1st Year - 458 2nd Year - 427 3rd Year - 606 4th Year - 695 5th Year - 800


1st Year - 265 2nd Year - 297 3rd Year - 330 4th Year - 365 5th Year - 432

Employment in Cluster : 60 per unit (Total over 4200 directly employed and about 8000 including both direct and indirect employment)

Technology Details : Inadequate die-casting facilities available in the cluster without advanced equipment affects quality of die casted. Inability to polish and hence produce high finish requiring cookware as well as products with intricate design; no facility for forging quality knife blades and for impact bonding; Absence of advanced tool room facilities

Whether DS Conducted : The DSR has been conducted in NOVEMBER 2011.

Main findings of DSR : The critical findings may be viewed in terms of unfavourable value-chain circumstances in terms of circle cutting/blanking facilities, tool room facilities, polishing and value added facilities etc.

Main Problems of Cluster : In the context of the cluster at Kundli, the typical problem experienced by utensil and cutlery units is in terms of limitations in de-coiling and slitting equipment, automatic circle cutting equipment, polishing equipment, CNC tool room equipment, testing lab equipment and value added product making facilities like knife blade forging cutlery segment and impact bonding. Paucity of resources

184

affects necessary up-grading.

Other Information : The typical small-sized units in the cluster have poor linkages with nationalized and other commercial banks in terms of appropriate instruments affecting their performance potential. The common facility is expected to enhance the competitive positioning of cluster firms and enhance their investment attractiveness. Rising input costs in terms of raw materials and relatively stagnant market prices for finished products and services offered by cluster firms has been affecting profitability of cluster firms. Optimisation of procurement costs as well as technology up gradation is critical to retain competitive advantage.


Cluster Division

(a.) Justification for CFC The establishment of CFC will bring out the following impacts Growth rate of cluster is likely to increase from 15 % to at least 20% ; Increase in cluster output by 100 % in next 5 years (to 1588 crores). Graduation of firms into producing value-added utensils like sauce pans, and cutlery like knives etc.; These Products will enhance turnover and capacity utilization which is presently hardly 50 %. Products of better quality and finish to consumers at 10% lesser price. There will be an increase in direct employment at least by 50 % from 4200 persons to 6300. There will be saving of Approx. 10% in the scrap loss from the raw material while circle cutting operation. Reduction in time 3-5 days by means of slitting and de-coiling, polishing.

--

(b.) Location of CFC The location of CFC will be at I.E. Sonepat and the land allocated is 4500 sq.mt

In-principle approval given by HSIIDC for land.


0 --


0 --

(c.) Land for CFC

185


i. Whether land acquired In principle approval for land has been given. Land is not registered in the name of SPV.

ii. Title is in name of The title is in the name of SPV Kundli Stainless Steel Cluster Services Pvt. Ltd

iii. Valuation and its basis Land (Rs. 263.25 Lakhs) and site development (@ Rs. 16.75 Lakhs).

HSIIDC has given tentative cost of 4050 sq. mtr. plot i.e. 28350000/- (@ 7000/- sq. mtr.)

iv. Land is sufficient It is sufficient. --

v. Change of land use It will used only for CFC. Proposed land is situated in industrial estate.


No Lease is there. --


No Lease is there. --


Building and civil works (shop-floor area of 31,110 sq. ft. and administrative and support area of 1969 sq. ft. or total of 33153.12 sq. ft. @ Rs. 652.32 per sq. ft.)

--


Building and civil works (shop-floor area of 31,110 sq. ft. and administrative and support area of 1969 sq. ft. or total of 33153.12 sq. ft. @ Rs. 652.32 per sq. ft.). The total cost is 216.27

--

(f.) Main Facility Proposed The main facility in terms of circle cutting/blanking facilities, tool room facilities, polishing and value added facilities etc. is proposed.

--


--

(h.) Major Outputs/Deliverables of CFC, Projected performance of the cluster after proposed intervention (in terms of production,

Growth rate of the cluster is likely to increase from 15% to at least 20% Cluster output may increase by even 100 % in the next 5 years (to Rs. 1588 crore) Graduation of firms into producing value-added utensils like sauce pans, and cutlery like knives etc; products

Deliverables should be in terms of turnover, export and employment with time limit.

186


export/domestic sales and direct/indirect employment, etc.)

will enhance turnover and capacity utilization which is presently hardly 50% There will be saving of approx. 10% in scrap loss from raw material over circle cutting operation. Increase in direct employment by at least 50% from 4200 persons to 6300.


No. Consent to establish is required.

(j.) Man Power in CFC Please Refer to Table 18 Page no. 58 99 persons


Please Refer to Table 28 Page no. 67 Given



Division

(a.) Name and Address Kundli Stainless Steel Cluster Services Pvt. Ltd 153 I&J EPIP HSIIDC Industrial Area Kundli 131028 Haryana India

--


Kundli Stainless Steel Cluster Services Pvt. Ltd

--


Mr. T.L. Satyaprakash, State Govt. Mr. Vijay Kumar, MSME

Provision of nomination of State Govt. and MSME official in the SPV should be made in bye laws.

(d.) Date of formation of SPV 17th Nov 2011 --



Yes --

(g.) Authorized Share Capital 550 Lakhs --


530 lakhs --

187



(i.) Shareholding Pattern Refer to Table 13 Page No 44 i.e. List of SPV members and proposed initial shareholding mix

Proposed shareholding pattern given.



SPV and State Govt. commitment regd. their contribution is required.

(k.) SPV specific A/c The Account of SPV is in Oriental Bank of Commerce.

Bank account detail is required.

(l.) Turst Building of SPV,Previous track record of co-operative initiatives pursued by SPV members need to be highlighted with support documentation


Paper cutting of one programme organized by DIC is enclosed.

(m.) Technical Institution The technical institution is ITI Sonepat ITI don't have much expertise as required to CFC.


Refer to Annexure 12. Requirement of facilities Evidence of Demand

--

(o.)


Connected Load of 1341 kVA, Drawn Power of 766.24 kWh, Also Refer to Table 21 Page no 61.

--

(b) Water 0.21 lakhs per annum --


--

188



Division


As per guidelines




The DPR is being favourably appraised by SIDBI and they have recommended it technically feasible and financially viable.



The comments of technical division will be there once submitted to DC MSME.

Under examination.


Still to be done. Yet to be placed before Technical Committee.


The comments of Cluster Development division will be there once submitted to DC MSME.

--


The working capital margin of Rs. 14.42 is approved by Oriental Bank of Commerce.

--



(a.) BEP 32.53% As per guidelines

(b.) IRR, Payback period 55.80 and Payback period is 1 year 9 months.

--

(c.) DSCR Not Applicable --


16.74 without grant 54.84 with grant 25% ROCE is desirable as per guidelines

189



(e.) NPV NPV is positive and high (1265.84) at a conservative project life of 10 years

--

(f.) DER NA --

(g.) Sensitivity Analysis Please refer to Table 36 Page no- 76 -- 6. Total Cost : The total cost of the CFC is as follow:







61.52




Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 30.53 527.28 (2.) Grant-in-aid from Govt. of India 60.79 1050.00 (3.) Grant-in-aid from Govt. of Haryana 8.68 150.00 (4.) Bank Loan/others 0.00 0.00 Total 100.00 1727.28 9. Shortcomings:- Ø In-principle approval given by HSIIDC for land. Ø Land is not registered in the name of SPV. Ø Deliverables should be in terms of turnover, export and employment with time limit. Ø Consent to establish from Pollution Control Board is required. Ø Provision of nomination of State Govt. and MSME official in the SPV should be made in bye laws. Ø SPV and State Govt. commitment regd. their contribution and Bank account detail are required. Ø Technical agency proposed - ITI don't have much expertise as required to CFC.

190

Ø Implementation period should be 24 months from the date of final approval. Ø SIDBI appraisal is required. Ø 25% ROCE is desirable as per guidelines. Ø Preliminary & Pre-operative expenses seems to be on higher side. Ø Details of cluster units are required.

10. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) in Stainless Steel Cluster, Sonepat, Haryana.

191

Agenda No. 32.34: Proposal for Soft Interventions of General Engineering Cluster, Thalassery, Kannur, Kerala. Proposal was received from Entrepreneurship Development Institute of India, Vide Online Ref. No:- 0620 / Dated : 07/08/2012 from Entrepreneurship Development Institute of India (Any Other Agency Approved by MSME) & recommended by MSME-DI, Thrissur. Details of the proposal are as under: DSR Conducted By : Entrepreneurship Development Institute of India

Validated By : Cluster Stakeholders including representatives of State Government & MSME-DI


When Completed : 20/07/2012 Pre-registration Information Name of Applicant : Entrepreneurship Development Institute of India

State : Kerala

District : Kannur

Cluster Product & Location : General Engineering Cluster, Thalassery, Kannur Brief Information of Cluster Main Product : Grill, Gate, Shutter, Roof Trusses


The technology employed in this Cluster is moderate and no pollution.

Age of Cluster : 53

No. of Units : 1800



30000.000





1.Kerala Tiny and Small Industrial Development Council PM-238,Jaison Building, Nr Sangeetha Talkies, Kannur-670001

192

2.Suloha Engineering Consortium Pvt Ltd, 15/165 G, Mini Industrial Estate, Kandikkal, Thalassery, Kannur


Creation of Awareness and information, dissemination of the project and develop trust amongst the members. 160 members will be involved


Internal revelry among the cluster member always cause reduction in prices. Unity of the Cluster members is necessary for better price.

Main Problems of Cluster : 1.Acute shortage of Man power 2.Using only Traditional Technology 3.No Product Standardization 4.Low Productivity 5.Lack of Opportunities for state of art technology and new designs 6.Very poor linkages with Developmental institution and Financial institutions. 7.Low managerial practices


Any other information : Success implementation of cluster development programme under MSE-CDP can turn around the fortune of this cluster and make it globally competitive. The cluster stakeholders are ready to pay their contribution for both soft and hard intervention under MSE-CDP.


Parameters Proposed by Implementation Agency (IA) Parameters Implementing Agency, its experience in cluster development

Entrepreneurship Development Institute of India (EDI) will be the Implementing Agency. EDI has about 14 years of experience of cluster intervention. It has established International Centre for Cluster Competitiveness and Growth (IC3G) with the support of DC(MSME), Ministry of MSME, GoI. The Institute is also working as a (i) National Resource Agency (NRA) under Ministry of Textile, GoI, (ii) National Technical Agency (NTA)- under Scheme of Fund for Regeneration of Traditional Industries(SFURTI)



Intervention proposed in the areas of skill, design, raw material, quality, productivity, finance, brand building etc.


193

Parameters Proposed by Implementation Agency (IA) Parameters Whether DSR validated by the stakeholders

The DSR is validated in the validation workshop participated by Director MSME-DI, Thrissur, Officers from Industries Department and other stakeholders.


Project Cost with break up : (Rs. in Lakhs)

Project Cost : - 25.00 GOI Contribution: - 17.86 Cluster Beneficiaries : - 7.14

Project Cost with break up :


1.IID, Chennai 2.NIT, Calicut 3.NTTF, Kannur 4.MSME, Thrissur



Description Total GOI Association OutCome 01. Cluster Meeting and Awareness

Programme on Min. of MSME Other Ministry & Departments

0.80 0.72 0.08 Creation of Awareness and information, dissemination of the project and develop trust amongst the members. 160 members will be involved

02. Creation of Web sites and Printing of Brochures for Consortium

0.80 0.48 0.32 Wider publicity of the products and Cluster

03. Training Programmes on Best Managing Practices and Schemes of Financial Institutions

1.00 0.80 0.20 To Improve technology and Entrepreneurial Skills. At least 70 people will be benefitted.

04. Exposure visit to Exhibitions/ Other Clusters in India

1.00 0.80 0.20 Benchmarking/seeking opportunities in marketing and technology. 30 people will be benefitted.

05. Awareness programmes on QMS-QTT

1.00 0.80 0.20 To obtain international certifications. 50 People will be benefitted

06. 1. Two days programme Technology up gradation and 2. Technology Sourcing

1.00 0.80 0.20 1. Technological need in machineries. 30 People will be benefited, 2. Technological need in machineries

07. Energy Conservation Programme 0.40 0.32 0.08 Reduction in energy consumption. 40 People will be benefitted

08. Programme on Lean Manufacturing 0.40 0.32 0.08 Sensitization on Intricate Manufacturing Processes. 40 People will be benefitted

09. Six Sigma Awareness, ISI 0.40 0.32 0.08 Awareness on Quality. 40

194

Description Total GOI Association OutCome People will be benefitted

10. Participation in one Foreign Fairs 4.00 2.00 2.00 To get an International Exposure on Technology.

11. Services of BDS Providers 3.00 2.70 0.30 Resolving & Trouble Shooting

12. Expenses related to engagement of CDE

5.40 2.70 2.70 Providing Local Coordination & Support

13. CCC meeting, News Letter, Case Study, Documentation

0.90 0.72 0.18 Evaluation of progress of CDP, implementing learning and replication of best practices.

Total: 20.10 13.48 6.62 Solving problems of the MSMEs, improving their competitiveness and holistic development of the cluster.


195

Agenda No. 32.35 Proposal for in-principle approval to set up Common Facility Centres in Wooden Furniture, Kozhikode, Kerala. Proposal was received from Zamorian Furniture Consortium Pvt. Ltd., Vide Online Ref. No:- 1053 / Dated : 03/01/2013 & recommended by State Govt. & MSME-DI, Thrissur. DSR Details DSR Conducted By : Woodcraft Organisation of Kozhikode

Validated By : DIC, Kozhikode and other stake holders


When Completed : 25/01/2012 1. Basic Information of Cluster Name of Cluster : Wooden Furniture

Location of Cluster : Mandankavu , Kozhikode

Main Product : Furniture and fixtures (household and office)




1st Year : 2006-2007 Amount : 310.00

2nd Year : 2007-2008 Amount : 350.00

3rd Year : 2008-2009 Amount : 390.00

4th Year : 2009-2010 Amount : 430.00

5th Year : 2010-2011 Amount : 480.00


1st Year : 2006-2007 Amount : 0.00

2nd Year : 2007-2008 Amount : 0.00

3rd Year : 2008-2009 Amount : 0.00

4th Year : 2009-2010 Amount : 0.00

5th Year : 2010-2011 Amount : 0.00

Employment in Cluster :

14800 (Direct - 4800 and Indirect - 10000)

Technology Details Technology adopted is old and poor with no seasoning plant The equipment typically used are low technology and hand operated such as cutting machines, thickness, planer and surface planer, hand held routers, country made spindles etc.

Whether DS Conducted : Yes.

196

Main findings of DSR : Job working raw material processing seasoning facility. Job working component development facility. Testing facility. Design Studio (for training as well as job worked design services). Tool Room. Training facility (for operation of upgraded equipment). Edge-glued panel board development.

Main Problems of Cluster :

The seasoning segment along the intra - cluster value - chain in the region suffers from inadequate capacity and poor upgrading initiatives and is constrained into air dying and conventional kiln seasoning. Some larger firms have their own facilities only captive use. Expensive wood varieties affecting quality and cost. Potential for transition into cheaper and more competitive rubber wood is also affected. There is inadequate standardization of inputs. The prevailing technology at the disposal of cluster MSEs does not facilitate product standardization.



(a.) Justification for CFC

There is need for training facility for design in the cluster. The training at present offered by Govt. ITI, however the equipments used are decades old and comprising of conventional lathe, circular saw and basic carpentry tools. Seasoning of wood is to be undertaken with utmost care at controlled conditions of temperature and humidity which is not available with the MSMEs units. In the processing the units require advanced equipment like auto copy shaper with sander, CNC router and hydraulic copy lathe, finger joint board etc. Cluster firms also suffer from want of convenient testing facilities.

---

(b.) Location of CFC Mannankav Village, Naduvannur Panchayat in Calicut, Kerala

---


250 ---


600 ---

197


(c.) Land for CFC

i. Whether land acquired

4.11 acre acquired.

ii. Title is in name of Zamorians Furniture Consortium Pvt. Ltd.


Market basis

iv. Land is sufficient Yes.

v. Change of land use Not required as the land in industrial area.


Not applicable


Not applicable


40,000 Sq. Ft. shade type and 3500 RCC type. Total 43,500 Sq. Ft.


About Rs. 588.51 per sq. ft.


Estblish seasoning facilities for correct moisture content and chemical impregnation. Board making facility for some value added component. Training Facilities. Tool Room Facilities. Design Facilities. Testing and other support activities.

(g.) Prod capacity of CFC

Design facility - 300 projects per year. Training facility - 1200 nos. per year. Seasoning facility 3.60 lakh CFT per year. Finger joint board facility - 1240800 sq. ft.

(h.) Major Outputs/Deliverables of CFC, Projected performance of the cluster after proposed intervention (in terms of production, export/domestic sales and direct/indirect

Increased wages by at least 50 percent to existing manpower through skill upgrading. Fresh employment generation of at least 1200 per year. Reducing cost of procurement (by using seasoned raw material soft wood) by 50 per cent. Inreasing profitability of cluster firms at least 50%.

198


employment, etc.) Development of design facility.


Pollution clearance required.

(j.) Man Power in CFC 85

(k.) Revenue generation mechanism for sustainability of assets(service/user charges to be levied,any other-to be specified)

Revenue is estimated from design facility in respect of 25 project per month @ 25000/- per project. Training income is expected from 120 students per year @ 2000/-. Job work income is estimated @ Rs. 36 lakh per month on 8 hour shift basis. Seasoning income would be around Rs. 36 lakh per month on 30000 CFT per month. Job work income from finger joint facility @ Rs. 30 per sq. ft. for 4160 sq. ft. per day.




(a.) Name and Address Zamorian Furniture Consortium Pvt. Ltd. Airmens Heritage, 2/61/A1, Malakkal Road, Karaparamba (P.O.), East Hill, Kozhikode, Kerala


Private Limited Company.


DIC, Kozhikode

(d.) Date of formation of SPV 01.06.2011

(e.) Number of Members 31 nos.


Yes.

(g.) Authorized Share Capital Rs. 250.00 lakh

(h.) Paid up capital as on............ Rs. 102.00 lakh

(i.) Shareholding Pattern As per guidelines.

(j.) Commitment letter for Commitment letter submitted on

199



contribution 3.01.13.

(k.) SPV specific A/c Current account no. is 2385201005384 with SME branch of Canara Bank,Puthiyara, Calicut.


SPV members has earlier taken up joint initiatives in implementing several activities in the cluster.

(m.) Technical Institution Kerala Forest Research Institute, Thrissur The National Institute of Technology (NIT), Chathamangalam.


Commitment letter submitted on 3.01.13.

(o.)


901 KVA

(b) Water --

(c) Gas/Oil/Other Utilities -- 4. Implement Arrangements Description Proposed by Implementation


(a.) Implementing Agency Kerala Bureau of Industrial Promotion - (KBIP, Thiruvananthapuram

(b.) Fund receiving Agency Kerala Bureau of Industrial Promotion - (KBIP), Thiruvananthapuram

(c.) Implementation Period two years.

200




DPR submitted for appraisal to SIDBI.


--


--


--

(h.) Working capital(In-principle sanction of loan from a bank,if applicable arrangement made)

Working capital approval given by Canara Bank, SME Branch, Jail Road, Calicut vide letter dated 26.6.2012



(a.) BEP 20.06%

(b.) IRR, Payback period 38.75%

(c.) DSCR Not applicable


40.04%

(e.) NPV High and Positive

(f.) DER Not applicable

(g.) Sensitivity Analysis Positive and Satisfactory


13 CFCs approved and 7 operationalised






201




30.00


60.28


Total Project Cost 1584.43 7. Means of Finance: The suggested means of finance are as follows:

Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 14.80 234.43 (2.) Grant-in-aid from Govt. of India 66.27 1050.00 (3.) Grant-in-aid from Govt. of 18.93 300.00 (4.) Bank Loan/others 0.00 0.00 Total 100.00 1584.43 Shortcomings: (i) SIDBI appraisal is pending. The ‘in-principle approval is subject to following: (i) Approval of proposal by Technical Committee (ii) Compliance of project proposal as per MSE-CDP guidelines / SIDBI appraisal. Proposal for Steering Committee: Cluster Division recommends the proposal for ‘in-principle’ approval so that complete proposal as per guidelines is submitted. Steering Committee may consider the proposal for ‘in-principle’ to set up of Common Facility Centre (CFC) in Furniture Cluster, Kozhikode, Kerala.

202

Agenda No. 32.36 Approval of revised list of Plant and Machinery for setting up of CFC in Ethnic Food Cluster, Pala, Kottayam, Kerala

It is informed that the proposal for CFC was approved in the 17th meeting of Steering Committee of MSE-CDP held on 11.11.2009. The administrative approval for the project was issued on 2.07.2010. It is women cluster of 250 units with a turnover of Rs. 9.00 crore and providing employment to thousand of women. The project cost of CFC and means of finance are as follows:

Component of Project Cost:

S. N. Description Amount (Rs. in lakh) 1. Land 15.00 2. Building 35.75 3. Plant and Machinery (excluding transportation vehicles) 394.11 4. Working Capital required 10.00

Total 454.86 Means of finance:

GoI contribution Rs. 318.40 lakh SPV Contribution Rs. 45.49 lakh + Transportation Vehicle costing Rs. 40.00 lakh. Govt. of Kerala Rs. 90.97 lakh Total Rs. 454.86 lakh

2. Director of Industries and Commerce, Govt. of Kerala informed vide letter dt. 23/3/11 that land for the project has been procured and construction of building has been undertaken by consortium. However, since the project proposal was prepared during 2008 and being implemented now, Technical Expert concerned with the project i.e. Food Safety Solutions International, Cochin have suggested a revised list of plant and machinery which is as per the present requirement and need of the cluster. The matter regarding approval of revised list of plant & machinery was considered in 31st SCM held on 1.11.12 and the Steering Committee suggested the Govt. of Kerala to explain justification of revised list of plant and machinery in the next meeting. The Committee also granted extension to the project up to October 2013. 3. Director of Industries & Commerce has sent final list of plant and machinery and justification for the same has also been enclosed from Technical Expert (M/s Food Safety Solutions International, Cochin). The cost of revised list of plant and machinery is Rs. 394.11 lakh and is same as approved by the Steering Committee earlier. Thus, the project cost or GoI contribution will not be affected. Final list of machinery and justification is attached. Proposal for Steering Committee: Steering Committee may kindly deliberate and approve the revised list of plant and machinery costing Rs. 394.11 lakh. No funds have been released so far in the project to Kerala Bureau of Industrial Promotion (Implementing Agency) and O/o DC (MSME) would release funds under the project after its approval by the Steering Committee.

S.f~tySotartlO

fllcrnalional

TluruvananthapuramKerala.

Sub. ('1)1'- l inutc: of I" mccung of Steering Committee dated 01.11.2012Ref: r\nt!",-,ua item 1\10 J 1.20 (I) rime extension In Ethnic Food luster, Pala. Kouayam

Ir.

It \I ,'~ informed th.1I the project ha~ been delayed due 10 the machines earlier approved has beensubjec cd for changes ,1I,d clarifica IOn has been sought from the ate (,ovt regardrng justiricnuon ofchanges

Omax Fthnic rood Clus cr \\'JS formed under CDI' R years hack during 20(),t When It wa»imolemcnted by the consortium (Omav Ithruc Food Cluster KT 1) found practical ~:It;l commercialbottlenecks If implemented a, such, hence \\ c proposed SOIllC changes after drscussmg with I IEand State G0\1

(1m; 01 the kc: t':ndll1g, n:'lhl: \)1, !.!;tllsli. ~luJy carried OUI In 20()7 was 111..:need 1'01both Ra«matcr r.il and l uuxhcd .2""d '111:.I,'C' la.:tilt\"l '\l\lhll'IJI. II<I/..:n and Chilled] \t'I',,\dln~I:. 'I)() IIII''''ril~l: factln:- a' a l'",: 01 ~,<:Ii lakhs \' h g"l '!I'I'I,I\·..:d 111Iel- aha \ Ilk 1.,'"I':IH'n .' 1 I'~I)Cj)\) l-thnic 1"\1,: fdltl:l) <1111.Kcral.i 20():.

,\s p..:r IL<.:abo, C mcnuoncd det.ul , a lei 1)J'R, the 11:11eilp'I<.:Jt) uuli/auor requi.c-. 1•.••)1)1)sli 1'1hurl: up area and land of one acre 111<':t"tal cost "I land and builduu; IS three hundredlnkh« IO() 200) :\s thi-, cost was not affordable \\ c were forced to reduce the land and buil.nnj; areaaccording to the rev i sed prop al.

lhe need for 20(Jmt capacity chilled room at two k allOI1S \\ a~ kit to he renundam. ncnce \I a,taken out \\ Inch resulted 111a sa. Ing R;;,I J2.(J lakhs Similarly avings from setting lip Trauungfacrlu, I RS.27 50 lakhs. Thus total saving is Rs.160.1 () lakhs.

t the same time on a rev isron, the cost of packing machinery was scaled upio Rs.26.50 la .hsagainst I 1.66 lakhs approv cd Three packing macluncs, at Rs one lakh each wa: inadequate for a ClCand hence head packing. machines cosung R_ 2:lakh has been proposed, \\ luch brings a deficit 1'1'RsI-L'5Iakhs

r\ conungcncy I,ll plant and machu.er- (,-·0 of I'<\:~\). that \\as not covered III the 1':'I~"I.11pn'p{hai resuncd In ~!lIll11I\..·rliI.!'II""H \1,' i'.:"\.-+ ~ ',/; i~d,:.:-. ;-illl~.~c i"ld; _.:.LH"":;~\!l .:..... :".. - ~.' -'( :;::J" ;:::~w hcn this \la' ,..:t "Il ag.II'1,t the total s:I\,lng., ot R" I()O 10 lakh-. surplus Ill' Rs.In l J5 Iakhs hadulmc up I hi .unoum \\.1' carm.u kcd f"r a rt':l' Ill'\\ der mak im; unit. ih It IS a mu-t li'l the ,ll"tl'lwhich u,..:s lice 1',,\\d<':I;I, a prullar~ mgrcdrcut 1111\.1110US product-

l he le\ I~l.'d m.ichu I.,.r~ il"'l .h:I..·\'~rdnt:l~ :, ·Ild\.l •..•c•..l and nla~ be rakcu lip \\ uh the ,':iIL": \11

f H , II 11111.l:'~'r. ',', '1 tll~ l,.'lh.,IJIII" '.: f -\ I I!I •...'t·C!"II!I' uuuuuc, \jl'l'j 'II!

".11, ••..

C' '---..£l~J : --...-~'\ ou I,t;lIthrllll~ ,.-'1)\ vn.mdav .111I AU L';'; h",,! Sarcty I xpcrt

", '.::111

,-' ---M 1o J2, CHANGAMPUZHA N.\GAR COCHtN 682033 TELE FAX 91 ~84 2541352

tMAIL ,altyfss" SOfYOIl1 nef.t'l WEB ••••w ••••lo",d;o!e:~Dtullons 0'9

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S.lely. • !w0Dl

nternational

FOOD SAFETY SOLUTIONS INTERNATIONAL

To

The DirectorDirectorate of Industries & CommerceVikas BhavanThiruvananLhapuram

Sub: The need for leaving ou 200 MT Chilling room and associated revision in the Machinery list.

Wi h referenc= 0 Age-da itern No. ,020 (1) of minutes of 31" st ering cornrni ee of i.'1SE·COPof 1st

Iovernber 2012.he:d at ..;e-:. Deill., ha: pertains our clus er. we submit as folio vs

One of the k y findings of the diagnostic study earned out In 2007 was the need for both raw rna "rial

and fln;s ed goods storage acituv, normal, cold chilled. Accordrngly, in all 700 MT s orage at a cas of

293.11laklls was approved inter-aha vide sanction r 0.1 (91)/C.OO/Ethnic-Food, Ko tayam/Kerala 2007

Howe er, from the point of findings to sanction there was 4 years gap of and wi hin this gap period,

a) A good number of member unr s have added refrigera ors' and small freezers 0 their units,

mostly owing to uncertainty of the CFCcoming up, thereby reducing the dependency on the CFC

b) The exporting agencies iike Parayil ha e either set up or added 0 their cold storage/chilling

facilrty

c) The ethruc foods based on rice powder, Atta, white gram, Bengal gram flour, e c., came into

prominence, hrmtmg the need for deep frozen vegetable and fruit based preparations.

In the above back drop, two chilling rooms 100 MT capacity each at 2 loca Ions was felt 0 be redundant

and was ta en ou ha resulted In a saving Rs.66.30 lakhs (explained in he able).

Similarly sa rngs wer affected In Training acihtv (Rs27.50 lakhs) totaling 0 Rs.160.10.

A the same rme upon a more ragma ie re rsion the cost of packing machinery was scaled up to

Rs.26.S0 lakhs against Rs.ll.6C lakhs approved The 3 pac aging machrnes at Rs On lak each vas el

to be 00 Ilia '.:ql.ate for a C. C C'~\;j;,lonf'd A 10 h(:dC packing machine costing RS.7S lakh; Wi1~I. cillrl~n

ms ead and tha resulted in a deficit 0 Rs 14.8:' lak s

Similarly when provisions were rnade f(,r Installation. commissioning, Elec rifrc uon (a 10% 0 P&I )

and con In encv for plan machinerv (S%of r& ). tha was not covered III the Original proposal

'.

M 10 J2. CHA GAWPUZHA NAGAR. COCHIN . 682 033, THE FAX:91 484 2541352EMAIL: vollyfss@sotyom ne1.in WEB: '(I'ww.foodsofetysolutions.org

Q.oZCh)

--------------------------,nic Food Processing Clust r - MIs. Omax Foods Pvt. ltd., Pala, Kottayam

Setting up of (FC under MSE-CDP scheme

List of Plant & Machinery

Raw material storage facility 250 MT. Capacity qty. Amount. When brought down to SO MT. capacity qty. Amount.

Sintex Pallets 65 Nos. 3,00,000 Sintex Pallets 20 Nos. 1,00,000

Exhaaust Fan 6 Nos. 30,000 Exhaaust Fan 4 Nos. 20,000

Air Curtains 1611os. 30,000 Air Curtains 4 nos. 60,000

Fly cacher 4Nos. 20,000 Fly cacher 3 Nos. 15,0002lO Us •

Seablast puff boxes 210 Us • 40 Nos. 3,20,000 Seablast puff boxes 10 Nos. 50,000

Racks slotted angle 2,65,500 Racks slotted angle 6 Nos. 25,000

Trolley 8 Nos. 1,20,000 Trolley :6 Nos. 90,000

Fork Lifter 4 Nos 60,000 Fork Lifter 2 Nos. 1,50,000----Weighing balance 20,000 Weighing balance '1 Nos 25,000

Total 11,65,500 5,35,000

Raw material chill room storage facility 100 MT.

Capacity -Chill room cold storage 1000 sc0t. . 50,00,000 Included along with FG cold sior r~f' f:lCIll.)tv( 30 rnt. capacrtv]Blast freezer(tunnel) 1~,00,000Siltex Pallets 25 nos 1,00,000Air Curtains 2 Nos. 10,000

Thermograph 1 No. 20,000

Total . 66,30,000~

Finished goods cold storage facility 150 Mt.

capacity When brought down to 30MT. capacity-

Cold storage room 5000sq.f1. 75,00,000 chillroom facility 1500 sq. feet .- _. 2250000

pallet Siltex 2,00,000 blast freezer 100000\)

Trolly 4 Nos. 40,000 ante room 200000_.

fo t' O· Ku .Foo<u k'y~.

<1 oC2~~.9.

Curtains 1 No. 5,000 outlet curtain- 15000Anti roorn-Z sq.ft. @ 4 degree 5,00,000 siltex pallets 200000

Outlet Air curtain with PVCstrips. 10,000 Trolleys 4 nos. 80000

Thermograph 20000- I--

Air curtains 2 nos. 30000

-Total 82,55,000 37,95,000

--Packing facility-2000 sq.ft. Packing facility (SODsq. feet.)

packing machine 3 NO$. 3,00,000 packing machine with vacurnm sealing 3 "'Os.Sealing machine 2 Nos. 15,000Vaccum sealer machine 1,00,000 8,00,000

Slated angle racks 5,00,000

UV lights 20,000 UV lights 1 No 10.000

Tubelight fittings 3,500 Tubelight fittings 10 11. " 1,00.000

Bar coding Machine 2,00,000 Bar coding Machine 1 No 1,00,000

Trollys 12.000 Trolly 1 no. 15.000f---Air Curtains 15,000 Air Curtain 1 No. 15000--_._--Total 11,65,500 10,40,000~---Training facility for conducting training & demo - Training facility for conducting training &2500 sq. ft. demo -500 sq. ft.

Multimedia projector 2 NuS. ],00,000 Multimedia projector 1 No. 1,00,000- -Computer JO Nos. 3,00,000 Computer 7 No~ I 3,00.000

Printer, Xerox, Copier, acessories. 2,00,000 Printer, xerox, Copier, acessories. 11 S 1 ( Jch 2.00,000-Video, Photo facility, TV, OVO, Speakers 1,50,000 Video, Photo facility, TV, OVO, Speakers 1 set ., .ch 1,50,000

Furniture & fittings 1,50,000 Furniture & fittings 2,00,000-Certification of HACCP/ISO 2200/EG/BRC 8,00,000Demo machinery/aso for preprocessing usage 20,00,000Total 37,00,000 9,50,000

.0 facility 15,00,000 Food tes:

When hn

Finished Chill room storage facility at 2 locations 100 mt. ton 2 units)

Chill room cold storage 1000 sq.ft. 50,00,000 Chill roon

Installation and commitionmg 15,00,000 5iltex rail:

5iltex Pallets 25 Nos. 1,00,000 Air Curtai:

Air Curtains 2 Nos. 10,000 Thermos:

Thermograph ] No. 20,000 _.I .- -. 66,30,O~~ _._-ITotal for 2 locations --_ ..__ . 1,32,60,000 Total for.I IISupporting Ec;ulpmpt-;--"- ._. -~ - -----

-- ----Generator 15,00,000 Gener (1tll~----Fire fightlllg Cquiprnots 2,00,000 Fire 1i,;;i1t

Installa I,·Installation and commitioning 15,00,000 Electrlfi',

office equiprncnts 5,00,000 office eq.:Electrical fittings 35,000 Contlger»

Total 37,35,000 ---- Extruder

Rice powd

acsosoriesunit,pul~:!Chapati III

Weighinp

Rice f/ak( rGrand Total approved 3,94,11,000 Grand Te,1

1:1pht down to 30MT. (Capacity

~~gfaci/it~y +- 4-_1_5~,_00~,_0_0~0

cold 5 orage 16,00,000

',s -!I- __ -!1-..::1-'-',0::..c:0:.!.,O:..;0::..c:0~10,000

!_p_h ~---~--2-0,~0-0~0

17,30,000

~~_ca_tl_o~ -!I- .~..::3..::4~,6::..c:0:.!.,Q:..;0:..;0~1

---- --------- -1-----1-------1

___________ 1--__ -I-_2_0-'-,0_0.:...,0_0~0

.,:,ti E~~p~m_e_ts +- +__2....:,...:.0..:..0,:..::0..::0_=_l0Ii. cornr-u ioning &

:i0!1 32,51,000

5,00,000rornen 5

:v_for pl~nt & machinery 15,75,000

75,26,000

8,00,000

er unit(5 MTD withcomplete

like destoner, sifter,washing

'Isor,master,packing unit etc. 13,87,5000

aker (1000 per hr.) 10,00,000

alance 10 Kg to 100 Kg 30 000

clnd puffing machine 49,00,000

~propo_s_e_d ~ -i-3~,_9_4~,1_1:.!.,0~0:..;0~

IS.T '.Q -M..u: .t'~oa.»r" L-•••• ",",'. Ic \.L ~- - d'

~.'"-.

203

Agenda No. 32.37 (i): Proposal for conducting Diagnostic Study Report (DSR) in Rice and Rice Bran Cluster, Balasore, Odisha. Proposal was received from Balasore Chamber of Industries & Commerce, Vide Online Ref. No:- 0785 / Dated : 17/10/2012 & recommended by MSME-DI, Cuttack. Details of the proposal are as under: Name of Organization : Balasore Chamber of Industries & Commerce State : Odisha District : Balasore Cluster Name & Location : Rice and Rice Bran Cluster, Balasore Brief Information of Cluster Main Product : Rice & Rice Bran Oil Technological details, Pollution angle, etc : Low level of Technology. Age of Cluster : 30 No. of Units : 33 Profiles of Units/Category : Micro : 9, Small : 23, Medium : 1 Women : 1, Village : 0, SC/ST : 1 Turnover (Per Annum) : (Rs. in Lakhs) 13654.16 Export : (Rs. in Lakhs) 20.22 Employment (Direct/Indirect) : Direct : 1097, Indirect : 1500

Women : 300, SC/ST : 500 Presence of association/NGO, Contact details :

Balasore Chamber of Industries & Commerce

Main Problems of Cluster : Ø Raw material procurement and its quality cost Ø Production process Ø Technology



Balasore Chamber of Industries & Commerce

Project Cost with break up Rs.1.00 lakh Technical Agency to be associated & its expertise

CRRI, Cuttack, OUAT, Bhubaneswar & Agri. Dept, Govt. of Odisha

Justification for DSR Find out the Gap in technology & production Outcomes of conducting DSR To develop the technology by soft & hard

intervention Amount Recommended : (Rs. in Lakhs) Rs. 1.00 lakh or actual cost, whichever is less.

Proposal for Steering Committee: Cluster Division recommended the proposal. Steering Committee may approve the proposal for conducting diagnostic study in Rice and Rice Bran Cluster, Balasore at a total cost of Rs. 1.00 lakh or actual, whichever is less subject to condition that MSME-DI, Cuttack should be the Implementing Agency.

204

Agenda No. 32.37 (ii): Proposal for conducting Diagnostic Study Report (DSR) in Dry Fish, Pradeep, Jagatsinghpur, Odisha. Proposal was received from Directorate of Industries, Odisha, Vide Online Ref. No:- 0551 / Dated : 11/07/2012 & recommended by MSME-DI, Cuttack. Details of the proposal are as under: Name of Organization : Directorate of Industries, Odisha State : Orissa District : Jagatsinghpur Cluster Name & Location : Dry Fish, Pradeep Brief Information of Cluster Main Product : Dry Fish Technological details, Pollution angle, etc :

Traditional processing of sea food (fish) through unorganized fishing; Wastage in absence of scientific storage system; Bad odour during processing

Age of Cluster : 50 No. of Units : 374 Profiles of Units/Category : Micro : 374, Small : 0, Medium : 0

Women : 40, Village : 1, SC/ST : 250 Turnover (Per Annum) : (Rs. in Lakhs)

18700.00

Export : (Rs. in Lakhs) 60.00 Employment (Direct/Indirect) Direct : 1870, Indirect : 1122 Women : 1122, SC/ST : 1110 Presence of association/NGO, Contact details :

Kalinga Karnadhara Samabaya Samiti

Main Problems of Cluster : Lack of technology for processing / storage / packaging / access to direct export

Any other information : Enterprises belong mostly to Fisherman Community Analysis of Proposal Parameters Proposed by Implementation Agency (IA) Implementing Agency, its experience in cluster development

Director of Industries, Odisha

Project Cost with break up Rs.2.50 lakh may be provided to conduct baseline survey, cluster level sensitization.


Agencies under Fisheries Department, Government of Odisha will be associated as Technical Agency

Justification for DSR To define the need for soft activities & hard component for better development of the cluster

205

Outcomes of conducting DSR Formation of SPV, proposal for hard component as well as soft activities for the cluster

Amount Recommended : Rs. 2.50 lakh or actual cost; whichever is less. Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting diagnostic study in Dry Fish Cluster, Pradeep, Odisha at a total cost of Rs. 2.50 lakh or actual, whichever is less subject to condition that OSIC Limited, Cuttack should be the implementing agency.

206

Agenda No. 32.38: Proposal for Soft Interventions of Bamboo Cluster, Bornagaon and Chotonagaon, Darrang, Assam. Proposal was received & recommended by MSME-DI, Guwahati, vide Online Ref. No:- 0670 / Dated : 03/09/2012. Details of the proposal are as under: DSR Conducted By : MSME-DI, Guwahati

Validated By : Deputy Commissioner, Darrang


When Completed : 27/07/2012 Pre-registration Information Name of Applicant : Guwahati

State : ASSAM

District : DARRANG

Cluster Product & Location : Bamboo Cluster, Bornagaon and Chotonagaon Brief Information of Cluster

Main Product : Agricultural Implements, Decorative Items, Fishing Implements, Food & Vegetable Baskets, Furniture Items, Hand Fan, Kitchen Use Items and Mats

Technological détails, Pollution angle, etc :

Traditional method of production using hand tools. As the products are Bio-degradable, hence no pollution.


No. of Units : 160



150.00


Employment (Direct/Indirect)



M/s. Graphics World, N.T. Road, Rangia, Kamrup, Assam

Whether DSR conducted. (a) Creation of Awareness

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Main outcomes of DSR : b) Motivation of artisans c) Information sharing d) Interest building among artisans towards cluster e) Trust building among artisans


The entry level barrier in the above cluster is low. Any one can enter in the industry with a minimum investment. There are no proprietary skills or technologies. The product differentiation & brand identification are hardly any. The rivalry amongst artisans are moderate. The product differentiation is minimal. The growth potential of the industry is very high provided technology is upgraded and marketing consortia is formed. The economies of scale must be achieved.

Main Problems of Cluster : 1. Largely following traditional method of production of various bamboo products and thereby getting low yields. 2. Lack of skill and knowledge on advanced methods of production of various bamboo products. Moreover there is no training institution nearby the cluster who can impart such skills. 3. The cluster actors are mainly depends on local banks/cooperative societies for their working capital requirement. 4. Market competition from other parts of the country,

Need for CFC, if any : Yes.

Any other information : NIL Analysis of Proposal




MSME-DI, Guwahati has implemented MSE-CDP successfully in 3 clusters till date.

No comments.


Strengthening of Self Help Groups (SHGS): Even though the artisans are working as group basis but this group are not formally registered as Self Help Group. For getting other departmental benefit to this group it is essential to form these groups as SHG. SHGs shall be formed to strengthen the artisans to work in groups. Skill Upgradation Training : Compare to products from other states and countries the artisans level of skill at

There are certain programmes on technology upgradation, design development, website creation and maintenance etc. which will be helpful to the cluster units.

208



present


Yes. DSR validated on 27/07/2012.

Project Cost with break up : (Rs. in Lakhs)



A. Department of handicrafts; O/o The Development Commissioner (Handicrafts) B. District Industries & Commerce Centre, Darrang C. National Small Industries Corporation D .Indian Institute of Technology E. Khadi & Village Industries Commission. F. Cane & Bamboo Technology Centre, Guwahati

Ok.

Justification for SI The Bamboo cluster in Bornagaon & Chotanagaon, Darrang has enough growth potential provided strategic interventions are made in some key areas. Some of the "Key areas" in which the strategic interventions are needed to improve the economic condition of the cluster are given below : 1. Raw materials - Creation of raw materials bank (local Bamboo plant) by earmarking suitable govt. land for the two cluster village. 2. Training programmes on skill upgradation, technology improvement and design development. 3. Capacity building.


Description Before Interventions

After Interventions

Turnover Rs. 150.00 lakh Rs. 200.00 lakh Employment 390 nos. 500 nos. Units 160 nos. 190 nos. Skill Upgradation 50 nos. 100 nos. Export Nil Rs. 5.00 lakh

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Description Total GOI Association Outcomes 01. Organizing Meetings, Seminars and

Awareness ProgrammesNo. of participants: 50 stake holders( per programme)

0.60 0.54 0.06 a) Creation of Awarenessb) Motivation of artisansc) Information sharingd) Interest building among artisans towards cluster e) Trust building among artisans

02. Awareness Programmes on Schemes of MSME, NSIC, KVIC, DC(handicrafts), State Govt. , Financial Institution, Other Developmental agencies No. of participants: 50 stake holders( per programme)

0.80 0.72 0.08 a) Awareness about schemes of different agencies b) Improve of technology, quality , Designc) Cost reductiond) Reduction in rejection rate e) Awareness of availability of Modern machinery & technology

03. Training Programme on1) Marketing Management2) Financial Management3) Enterprise management4) Product design & Development5) Packaging No. of Participants: 30

5.00 4.00 1.00 a) Diversified products with better designb) Better value additionc) Better returnsd) Economic up-liftmentf) Knowledge about marketing procedures & techniques e) Knowledge about accounting, Budgeting procedure, operations of financial transaction of business, Book-keeping, estimation value of products etc.f) Knowledge about new business ideas & management skill of an enterprise g) Knowledge about better pac

04. Website launching & up-gradation for 18 months, Brochure Preparation, Exposure visits

1.00 0.60 0.40 Support for wider publicity & products manufactured by the

210

Description Total GOI Association Outcomes cluster

05. Strengthen the cluster by providing token infrastructure like office furniture, computer, printer with office expenditure & internet connection

0.75 0.75 0.00 Better equipped with all contacts b) Business Developmentc) Introduction to E-Business

06. Local travel in the cluster of the in house staff & telecommunication expenses

0.90 0.90 0.00 Better Coordination of cluster development activities.

07. Misc. Developmental expenses etc. 0.90 0.72 0.18 Misc. developmental activities

08. Participation in domestic Trade fairs 1.25 1.25 0.00 a) Linkage with new buyers b) Promotion of products.c) Business generation, Trade enquiry ,New Market

9. Seminar/Workshop on alternate Marketing Strategy

1.00 0.80 0.20 Development of alternate marketing strategy for the cluster.

10. Services of BDS providers 3.00 2.70 0.30 Linkages with different BDS.

12. TA/DA to MSME-DI officials for tour outside the cluster

0.75 0.750 0.00 TA/DA for MSME-DI officials

Total: 15.95 13.73 2.22 Overall development of the cluster.


211

Agenda No. 32.39: Proposal for in-principle approval to set up New Industrial Estate Moran, Dibrugarh, Assam. Proposal was received from Assam Industrial Development Corporation Ltd., Vide Online Ref. No:- 0936 / Dated : 26/11/2012 & recommended by State Govt. & MSME-DI, Guwahati. Pre-registration Information Name of Organization : Assam Industrial Development Corporation Ltd.

State : Assam

District : Dibrugarh

Industrial Estate : Infrastructure Development Project, Moran Basic Information about Proposal:

Particulars Description

Whether appraised DPR with approved layout plan : No

Total Area of industrial estate/ area (acre): 94 of DPR 30.77 acre

Area to be developed (acre) 94 of DPR 30.77 acre

Number and sizes of plots to be developed : 94 of DPR 60 plots of various sizes (500sqm, 1000 sqm, 2500sqm)

Implementing Period : 90 of DPR 21 Months

Other ID projects sanctioned in same district: year of sanction, number of plots allotted, units set up, etc. :

No

Performance of ID projects in state. : 10 of Annexure Out of 7 IIDs in the state, 5 are completed and 2 are ready for commissioning

Details about Proposal:


Implementing Agency (IA): 10 of DPR

Assam Industrial Development Corporation (AIDC) Ltd. A Govt of Assam Undertaking

This is as per guidelines of MSE-CDP.

Track Record of the IA 10 of DPR

Implemented 7 IIDs, 2 IGCs, 1 EPIP

This is as per guidelines of MSE-CDP.

Appraisal by SIDBI (Observations and recommendations). Attach

Appraisal yet to be done Proposal is for in-principle approval.

212


SIDBI report.

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) 70 of DPR

Yes, as per guidelines of the scheme

Yes.

Whether land is in possession in the name of IA with Clear Title 71 of DPR

Land Possession taken Document in support of land in the possession of AIDC is not available.

Whether Zoning regulations and non-agricultural conversion etc complied with):

Under Process No comments.


Already exist Copy not available at page 89 of DPR it is mentioned that State Level Committee will be formed.


Yes Copy not available.

Basis of elements of project Cost : 3 of Annexure

APWD Schedule of rates 2010 -11 No comments

Tangible Outcomes of the project 64 of DPR

Small and medium scale units mainly based on plastics, bamboo etc are expected to come up

Tangible outcomes relate to no. of units that may come up once the upgradation is complete, increase in employment, increase in turnover etc. which is not mentioned at relevant page 64.

Justification of the Proposal 57 of DPR

The district has no developed industrial infrastructure. However, the district has good potential for development of industries based on local resources

No comments

213

Project Cost: Particulars Estimated by IA(In Lakh)

Land filling/leveling including boundary wall and fencing: 94 of DPR

212.90

Laying roads 94 of DPR 200.00

Road side greenery & social forestry 94 of DPR 10.00

Water supply including overhead tanks, and pump houses94 of DPR 104.40

Water harvesting94 of DPR 9.60

Drainage94 of DPR 60.00

Power distribution, Street light arrangements, etc. 95 of DPR 246.60

Road side greenery 95 of DPR 150.00

Effluent Treatment Facilities 95 of DPR 80.00

Contingencies & Pre operative expenses : 95 of DPR 21.70

Other ((Sanitary Conveniences): 10.00

Total 1105.10 Means of finance:

Particulars Proposed by IA

GoI Grant under MSE-CDP: 800.00

State Government 194.60

Others 110.50

Total 1105.10 Proposal for Steering Committee: Cluster Division recommends the proposal. Committee may approve the proposal for ‘In-principle’ approval for setting up of ID Centre at new Industrial Estate, Moran, Dibrugarh, Assam.

214

Agenda No. 32.40 Proposal for In-principle approval of setting up of Common Facility Centre in Fan Cluster, Hyderabad, Andhra Pradesh. Proposal was received from MSME-DI, Hyderabad with their recommendation, Vide Online Ref. No:- 1145 / Dated : 21.02.2013. 1. Brief Information of Cluster Name of Cluster : Fan Cluster Location of Cluster : Bollarum Main Product : Ceiling fans and TPW varieties No. of Enterprises including break up(micro, small, medium) :

Micro - 120 Small : 30 Medium : 11

Turnover(Rs in Crore) for the last five years : (P- 13 of DPR)

2007-2008 : 500 2008-2009: 550 2009-2010 : 600 2010-2011 : 720 2011-2012 : 882

Exports(Rs in Crore) for the last five years : 2007-2008 : 48.5 2008-2009: 51 2009-2010: 54 2010-2011: 55 2011-2012: 60

Employment in Cluster : (P-11 of DPR) 23700 Technology Details : (P-23 of DPR) Semi-Advance Technology Whether DS Conducted : (P-16 of DPR) Yes Main findings of DSR : (P-16 of DPR) Clusters technological backwardness resulting in

critical gaps in Fans manufacturing, Usage of sub quality Components & absence of in-house/local testing facilities. Decline in enterprises sustainability, market competitiveness, profitability. Limited compliance of B.I.S standards. Need to provide for availability of quality fan Stamping & all testing facilities under one roof.

Main Problems of Cluster : (P-22 of DPR)

Non availability in Cluster of required in house on /local testing facilities as per BIS/ BEE standards or requirements. Absence of low carbon, online skewed & riveted stamping crucial to meet power consumption standards. Poor components quality. Fans demand globally growing but Clusters growth declining. Marking competitiveness failing to keep pace with technically advance manufacturers.

215

Other Information : (P-17 of DPR)

DSR especially mentioned establishment of CFC for overall Cluster improvement particularly in stamping manufacturing, fan tasting & plastic mokded components quality improvement.


(IA)

(a.) Justification for CFC (P-46 of DPR)

CFC will eliminate technological backwardness in core components availability and in other crucial areas. Make available quality components as per BIS& BEE specification. Foster enterprises capacity built up, sustainability & make them self-propelling for growth. Improvisation in their market competitiveness in domestic & export markets.

---

(b.) Location of CFC (P-74 of DPR)

Bollarum, Medak district ---

(c.) Land for CFC i. Whether land acquired (P- 74 of DPR)

Lease Agreement in favour of Hyderabad Fan Cluster Co. Pvt. Ltd. entered, will be registered after approval.

Lease agreement is not available.

ii. Title is in name of Yash International Hyderabad i.e. Lessor. iii. Valuation and its basis Lease amount Rs.12,00,000 P.A with 5%

increase every year iv. Land is sufficient Yes v. Change of land use Not required. Located in Industrial Area vi. If on lease, duration of lease 18 Years vii Whether lease is legally tenable

Yes

(d.) Total Building area(sq ft) (P-74 of DPR)

28,220 Sq.ft ---

(e.) Rate of construction of building (P-76 of DPR)

Rs.612.45 per Sq. Ft ---

(f.) Main Facility Proposed (P-36 of DPR)

• Quality plastic component development facility

• Quality stampings component development facility

---

216

• Testing Lab (g.) Prod capacity of CFC (P-95 of DPR)

Testing Facility-RM testing 100 tests/day, Air Delivery 1 test/day, Tensile testing 100 tests/day, Salt tests 5 tests /day Stampings 20 Tons/day. Injection Molding Capacity will depend on component weight and number of cavities per die ,

---

(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.) (P-46 of DPR)

CFC will almost double cluster turnover in 5 years and growth rate of 20%, Increased employment potential, Enablement of cost& quality advantage to enterprises, Improved Cluster enterprises sustainability Enhanced productivity due to better technology & equipment, Cost reduction by 10/15%, Increased profitability and value accrual Greater export orientation through appropriate technology & equipment.

---


Not required being non - pollutant CFC NOC from Pollution Control Board is required.

(j.) Man Power in CFC (P-83 of DPR)

54 ---

(k.) Revenue generation mechanism for sustainability of assets(service/user charges to be levied, any other-to be specified) (P-95 of DPR)

Total gross revenue in flow works out of Rs. 917.17 lakh per annum on the basis of operating capacity (on two shift basis for value adding facilities) of 80 percent.

---

3. Information about SPV Description Proposed by Implementation Agency (IA) DPR/Annexure

Page No. (a.) Name and Address (P-58 of DPR)

Hyderabad Fan Cluster Pvt. Ltd. Regd Off Hyderabad Fan Cluster Co. Pvt. Ltd., D.No.A-2-310/A/5, Road No.14, Nandinagar, Banjara Hills ,Hyderabad-500037 Adm off. A-5 SIE, APIE Balanagar, Hyderabad 500 037.

---


Private Limited Company. ---

217

Description Proposed by Implementation Agency (IA) DPR/Annexure Page No.

(Annex.-III) (c.) Name of the state Govt. and MSME officials in SPV

Agency identified by Govt of AP. Names yet to be advised.

Provision should be made

(d.) Date of formation of SPV (Annex.-III)

22nd July 2010 ---

(e.) Number of Members (P-61 of DPR)

25 ---

(f.) Bye Laws or MA and AOA submitted (Annex.-III)

Yes ---

(g.) Authorized Share Capital (Annex.-III)

Rs.3.0 Cores ---

(h.) Paid up capital as on............ Rs.11.0 Lacs as on 08.10.2012. --- (i.) Shareholding Pattern (P-61 of DPR)

5 Directors 10% each, 20 Members 2.5% each

---


-- Commitment letter is required.

(k.) SPV specific A/c ING Vysya Bank, SP Road, Secundrabad-500003, Current A/c No.700011014755

SPV specific account is not available.


Soft Intervention completed by MSME - DI Hyderabad with good results. SPV members actively participated. They visited Dubai & Sri Lanka for market development. Linkage with banking sector strengthened Cluster association formed. There is good co operation among SPV members & also with other Cluster enterprises.

---

(m.) Technical Institution (P-70 of DPR)

MSME Testing Station Hyderabad. ---

(n.) CFC may be utilised by SPV members as also others in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (Annex- XII)

SPV member’s commitment letters in annexure XII enclosed committing to meet their requirement of envisaged facility from CFC.

---

(o.) (a) Power requirement for Total connected load -446 KVA ---

218

Description Proposed by Implementation Agency (IA) DPR/Annexure Page No.

commercial/domestic purpose (P- 85 of DPR)

(b) Water 6000 ltr per day --- (c) Gas/Oil/Other Utilities Diesel for DG set ---


(IA) Remarks

(a.) Implementing Agency State Govt. Identified agency and will communicate shortly

Implementing agency has not been finalized so far.

(b.) Implementation Period (P-113 of DPR)

24 Months from date of final approval of Grant- in - aid assistance from GOI

---

(c.) Appraisal of DPR and main Recommendations

In Progress at SIDBI Hyderabad SIDBI appraisal is not available.

(d.) Comments of Technical Division

Technical division recommended the P&M of Rs. 1243.60 lakh as recommended by MSME-DI, Hyderabad.

(e.) Approval of Technical Committee

The proposal for setting up of CFC in Fan Cluster, Hyderabad region, Ranga Reddy District was discussed in the Technical Committee Meeting held on 19.02.2013 and the Committee therefore, recommended the plant & machineries of worth Rs. 1243.60 lakh as recommended by Director, MSME-DI, Hyderabad under MSE-CDP before finalizing the appraisal by SIDBI

(f.) Working capital(In-principle sanction of loan from a bank, if applicable arrangement made) Annex- IX

In-principle sanction from ING Vysya Bank obtained.

---

219


(P-107 of DPR) (a.) BEP 32.26% (b.) IRR, Payback period Over 23.28%, 3 Years 9 Months (c.) DSCR Not applicable (Non availment of term loan in the project) (d.) Return on Capital employed (ROCE) 26.21% (e.) NPV Positive & High (Rs. 1001.27 Lacs at project life of

10years. (f.) DER No institutional loan is being availed except Working

Capital requirement. (g.) Sensitivity Analysis Project sensitivity is healthy viz-a-viz ROCE (24.13%) even

at assumed 5% fall in reduction in Usher Charges Project pay back period is less than 4 years 1 month so project is viable even under unlikely risk of environment and circumstances Please Ref page 111 of DPR.


Particulars Total Cost (Rs. in Lakh) (1.) Land and its Development 15.00 (2.) Building and other Civil Constructions 172.83 (3.) Plant & Machinery(including electrification) 1305.78 (4.) Misc. fixed assets 15.00 (5.) Preliminary & Pre-operative expenses, maximum 2% of project cost

30.00

(6.) Contingency (2% building and 5% on plant and machinery) 68.75 (7.) Margin money for Working Capital 3.91 Total Project Cost 1611.27 7. Means of Finance : The suggested means of finance are as follows:

Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 16.22 261.27 (2.) Grant-in-aid from Govt. of India 83.78 1350.00 Total 100.00 1611.27

220

8. Shortcomings:

• Lease agreement and NOC from Pollution Control Board are required. • Provision should be made regarding name of the state Govt. and MSME officials in SPV. • Commitment letter for contribution and SPV specific account no. are required. • SIDBI appraisal is required.

9. Proposal for Steering Committee: Cluster Division recommends the proposal for ‘in-principle’ approval so that complete proposal as per guidelines. Steering Committee may consider the proposal for ‘in-principle’ to set up of Common Facility Centre (CFC) in Fan Cluster, Hyderabad, Andhra Pradesh.

221

Agenda No. 32.41 Proposal for in-principle approval to set up Common Facility Centres of Gold Jewellary Cluster, Vijayawada, Krishna, Andhra Pradesh. Proposal was received from Sri Vishwakarma Goldsmiths Private Limited (SPV), Vide Online Ref. No:- 0791 / Dated : 15/10/2012 & recommended by MSME-DI, Hyderabad.

DSR Details DSR Conducted By : Sri Vishwakarma Gold Smiths Private Limited with the help of

Foundation for MSME Clusters

Validated By : Commissioner of Industries, GoAP and MSME-DI, Hyderabad


When Completed : 13/04/2011

1. Basic Information of Cluster Name of Cluster : Gold Jewellary Cluster

Location of Cluster : vijayawada

Main Product : Gold Ornaments like Bangles, Necklace, Bracelets




1st Year : Amount : 118.00 2nd Year : Amount : 131.00 3rd Year : Amount : 146.00

4th Year : Amount : 162.00 5th Year : Amount : 180.00


1st Year : Amount : 0 2nd Year : Amount : 0 3rd Year : Amount : 0

4th Year : Amount : 0 5th Year : Amount : 0

Employment in Cluster : 24000

Technology Details : Melting, wire drawing, cutting and finishing process.

Whether DS Conducted : Yes, conducted by SPV with the help of Foundation for MSME Clusters

Main findings of DSR : The Vijayawada Industries plays the most dominant part in the economy of the city. In fact the Vijayawada Industries contribute much to the industrial scenario of the state of Andhra Pradesh. There are more than 6000 firms which are related to jewelry industry in the cluster. Refinery Units, Wire & Sheet Units, Micro Manufacturing units, Embossing & Dye units, Engraving Units, fitting & cutting units, Design & Drilling, Moulding & Casting Units, Polishing units constitutes local value chain.

222

With an estimated annual turnover of 180 crores and providing direct and indirect employment to 24000 workers, Vijayawada Gold Jewelry Cluster is undoubtedly one of the major jewelry making regions in the country. However its unorganized nature, poor growth of micro firms due to lack of infrastructure facilities, limited skill sets of workers in making of high-end jewelry, invasion of major retail chains are adversely effecting the growth of local jewelry making industry. At present there are more than 1000 part manufacturing firms (Gold Smiths) which are heavily depending on wire & sheet cutting, engraving, drilling and catsing units in jewellery making leading to higher production costs and time lines. Besides majority of the firms are making traditional obsolete designs and no efforts are made for new design development. Similarly these Micro Firms are depending on local private firms for testing and hall marking which is adversely affecting the value chain. To mitigate the above problems a society namely Sri Vishwakarma Gold Ornaments Manufacturers Industrial cooperative Society Limited was started in 2006. The Society by forming an SPV is contemplating to establish a common production cum demonstration plant, design development centre and testing cum hall mark facility which will be utilized by micro firms so as to reduce the production costs, improved productivity and strengthen their position in supply chain.

Main Problems of Cluster :

1. Inability to keep abreast of modern trends in product design, fashion and technological development 2. Closed Marketing Behaviour 3.Dominance of few leading traders and wholesalers 4. Lack of in-house testing cum hall marking Facilities 5. Large scale production of identical and homogenous products 6. Poor R&D back up 7. Low Product Diversification 8. Poor backward and forward integration with market 9. Poor Marketing tie-ups 10. Limited Industry Institutional Linkage


Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for CFC 1. Common Production cum Demonstration Plant: More than 2000 craftsman are lacking basic infrastructure facilities and proper equipment in the cluster and are depending on part manufacturing firms for making of various types of gold ornaments. This is mainly because of their unplanned growth and dearth of affordable and cost effective

---

223


technology. Their large number and diverse trade have further aggravated the problem. Under these constraints, setting up of an individual manufacturing Plant is no longer feasible. Moreover even the part manufacturing firms with their obsolete machinery and manufacturing process are unable to meet Hallmark standards there by incurring heavy losses and limited market penetration. Hence the desirable option is of shared or combined production plant where in managerial and operational aspects are collectively addressed and the cost of manufacturing becomes affordable. Such common facilities also facilitate proper management of quality standards. The proposed plant will cater to the needs of 200 such craftsmen who are in need of production facilities in Governorpet, a major area of concentration and serve as a model plant for other areas of concentration to emulate in future. 2. Common Testing cum Hall Mark Centre A hallmark is an official mark or series of marks struck on items made of precious metals platinum, gold, silver and in some nations, palladium. In a more general sense, the term hallmark can also be used to refer to any distinguishing characteristic or trait. As BIS has made it mandatory for Jewelry Industry to follow hall mark norms and maintain the specified purity, majority of the cluster firms are finding it tough to know what the purity of the ornament they made. Moreover there is only one private firm viz. M/s Pavan Hall Mark Centre which is dealing with laser hall marking which is charging exorbitant prices in the cluster. This is resulting in higher rejection rates and dent in profit margins. Thus there is definite need to establish a common testing cum 3D laser Hall Mark Facility which will cater to the need of all cluster firms. 3. Common Design Development Centre In the cluster only 20

224


composite firms are having their own design development facilities, whereas other firms are depending on skilled workers for manual design development without any formal training. These cluster firms are finding it hard to establish a Design Development Section on their own and are not in a position to hire the services of a professional designer. This is resulting in limited market penetration beyond cluster area there by effecting economics of scale. The cluster firms are not in a position to compete with those of West Bengal, Rajasthan and Kerala nor can they export their jewelry made of obsolete designs. Establishment of a common design development centre will ensure cluster firms to choose proper designs from design bank at affordable prices besides sending their workers to be trained in latest trends in designs and patterns through CAD and other related software. The establishment of a design bank not only increases the market share but also increase employee wages in the cluster.

(b.) Location of CFC Door No: 27-14-56A, Jhansi Nilayam, Rajagopalachari Street, Governorpet, Vijayawada - 520002

---


60 ---


90 ---

(c.) Land for CFC ---

i. Whether land acquired It is mentioned in the SIDBI appraisal that the CFC is proposed to be set up in lease premises taken from Smt. I. Jhanshi Rani with lease period of 14 years from 01.05.2011 to 30.04.2025. However, as per the modified guidelines of MSE-CDP, the lease should be legally tenable and for a

Lease deed duration should be 15 years.

225


fairly long duration (say 15 years). as the no. of years suggested by MSE-CDP is a tentative figure, it may accept the lease period for 14 years.

A condition has been stipulated to “Register the lease agreement of the premises (where CFC is to be set up) with the competent authority”.

ii. Title is in name of Owner Should be in the name of SPV.


Not applicable NA

iv. Land is sufficient Yes for present and future requirements ---

v. Change of land use A commercial complex approved by local municipality

---


15 years lease (registered) In the SIDBI appraisal lease deed shown for 14 years.


Yes Lease deed is required.


2016 ---


NA, Lease Premises ---

(f.) Main Facility Proposed Common processing cum demonstration centre, testing cum hall marking facility, design development cum training facility

---

(g.) Prod capacity of CFC 9600 job works in processing, 1800 designs, training programme for 100 persons, 40800 hall markings, 15000 quality tests, 36000 nos. of gold and silver coin making, and 48000 nos. of packing

---

(h.)Major Outputs/ 1. An estimated 300 artisans who do not ---

226


Deliverables of CFC, Projected performance of the cluster after proposed intervention (in terms of production, export/domestic sales and direct/indirect employment, etc.)

have units of their own will benefit from the proposed Common Processing cum Demonstration Plant which results reduction in production costs by 20 to 30%, increase in profitability by 7 to 12%. 2. The Common Design Development Centre is expected to be utilised by 300 designers whose wage component will be increased by 30% and also encourage free lance designing in the cluster. Around 500 cluster firms will purchase designs at subsidised rate which results in production of new patterns and models to penetrate high end markets. 3. The Common Testing cum Hall Mark Facility is expected to be utilised by 1000 firms there by improving the quality of ornaments produced and reducing rejection rates. The hall marking will enable part manufacturing firms to go for direct marketing. 4. Export marketing will be initiated by atleast 20 composite manufacturing firms with the development of new designs as per the international market trends. 5. Increased productivity and sales will have direct impact on employment which is expected to increase by 20% in the cluster. 6. Domestic Turnover will increase by 25%, reaching an export turnover of Rs. 5 crores, increase in profitability by 5%, employment by 20%.


Not required but NOC obtained from Local District Industries Centre

NOC is required from Pollution Control Board.

(j.) Man Power in CFC A total of 22 skilled and 4 administrative personnel are required for smooth running of the CFC

---


1. The user charges for processing centre are considered Rs.1000 per job work. The average sale price of each design is considered at Rs. 1200 for members and Rs. 1300 for non members. Rs. 10000 is considered as training fees in CAD per candidate. The user charge for each hall

---

227


marking is Rs. 50 for member and Rs. 60 for non-member. 2. Rs. 75 will be charged for each quality test from members and Rs. 90 from non-members in common testing facility. For each gold coin making the user charge will be Rs. 30 for members and Rs. 20 for non-members. Likewise for Silver coins the charges will be Rs. 20 & 30. 3. Finally for packing the members will give Rs. 5 per pack and non members Rs. 10




(a.) Name and Address Sri Vishwakarma Goldsmiths Private Limited, Door No: 27-14-56A, Jhansi Nilayam, Rajagopalachari Street, Governorpet, Vijayawada, Krishna District, Andhra Pradesh 520002

---


Private Limited Company ---


As of now none but provision has been made in AoA and MoA to include the one official nominated by State and one from Dc-MSME

Name of the state Govt. and MSME officials in SPV should be included.

(d.) Date of formation of SPV 25.07.2011 ---

(e.) Number of Members 32 ---


MoA and AoA submitted ---

(g.) Authorized Share Capital Authorised share capital is 27.20 lakhs

---

(h.) Paid up capital as on............ 10 lakhs ---

228



(i.) Shareholding Pattern At present 32 gold smiths/ artisans of SPV are the members with each members having equal or less than 10% shareholding

---


Already taken from all the members Commitment letter is required from SPV.

(k.) SPV specific A/c The SPV has opened a current account in Bank of India specifically for CFC operations

SPV specific bank account in Schedule A Bank is required.


All the SPV members belongs to Cooperative Society viz. M/s Sri Vishwakarma Gold Ornaments Manufacturers Industrial cooperative Society Limited. The society was established in the year 2006, under societies act with the main objective of establishing Common facilities and promoting common sales for part manufacturing firms. So far the society has undertaken following cooperative initiatives: 1. Formed a marketing consortia with 50 of its members and established a common sales outlet called Swarna Bazar in the year 2009. The total project cost is Rs. 50 lakhs out of which Bank of India has given a working capital loan to the tune of Rs. 30.00 lakhs. The annual turnover of the outlet for the year 2010-11 has touched 1 crore mark and established reasonable brand name in the local market. 2. The society with the help of a cluster expert has conducted a diagnostic survey in the cluster to highlight the issues plaguing the cluster. The DSR was submitted to DC-MSME along with application for in-principle approval for hard interventions. 3. The society has organized an

---

229



awareness work shop on 13.04.11 about the importance of hard interventions in the cluster with the help of MSME-DI, Hyderabad. 4. The Society is also contemplating to form an entrepreneur club by the end of the July 2011 under the aegis of MSME-DI, Hyderabad. 5. An interface with technical expert was organized on 28th and 29.09.11where Mr. Ramakrishna, Director, BIS, who explained about quality norms and guidelines for establishment of Hallmark centre. 6. The Society members regularly participate in all India industrial exhibition organsed annually at Vijayawada and UBM, Chennai through establishment of their own stalls. 7. Facilitated Collateral free lending to the tune of Rs. 30 lacs for 50 firms through bank of India as working capital loan for purchase of Gold. Applications for 100 more firms are under process. 8. Organised awareness programme for public on hall marking at All India Industrial exhibition supported by District Industries Centre

(m.) Technical Institution SPV will abide by the decision of Commissioner of Industries and MSME-DI, Hyderabad decision on finalisation and appointment of a suitable Technical Institution

---


All the 32 members have given consent to utlise the facilities in writing. Besides all the 200 firms of the society (members of SPV are also members of society) are going to use the facility and for which they already signed a letter of agreement

---

230



(o.) ---


22 HP ---

(b) Water 100 liters per day ---

(c) Gas/Oil/Other Utilities Nil ---

4. Implement Arrangements



(a.) Implementing Agency Commissioner of Industries will nominate suitable agency in this regard

Implementing agency is not identified.

(b.) Fund receiving Agency Commissioner of Industries will nominate suitable agency in this regard

(c.) Implementation Period one year ---


The present initiative of SPV/ State Govt./ GoI to establish CFC for the gold ornaments cluster to provide upgraded common facilities to MSEs under MSECDP of GoI, appears to be timely and need based approach. The project is technically feasible and financially viable. The proposed performance indicators and financial position are satisfactory. (as given by SIDBI)

---


The project is technically feasible (as given by SIDBI)

The proposal is under examination in the Technical division

231




Office of the Development Commissioner - MSME has instructed to prepare a DPR for establishment of CFC vide letter No. , dated

Yet to be placed before Technical Committee.


The project is technically feasible and financially viable.

---


No bank loan required as required working capital is very limited

---



Division

(a.) BEP 25.13 ---

(b.) IRR, Payback period 19.11 ---

(c.) DSCR Not Applicable as there is no loan component

---


30.26 ---

(e.) NPV Positive (78.76 lakhs) ---

(f.) DER Not Applicable as there is no loan component

---

(g.) Sensitivity Analysis 1. The proposed CFC can withstand upto 10% decrease in capacity utlisation and 10% drop in revenue. 2. The user charges taken are on conservative side but justified due to socio-commercial model of CFC concept. 3. Even at the fall of capacity and revenue the the IRR and ROCE are positive which reflects sustainable nature of the CFC.

---

232








5.19


11.28



7. Means of Finance : The suggested means of finance are as follows:

Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 10.18 26.45 (2.) Grant-in-aid from Govt. of India 89.82 233.23 (3.) Grant-in-aid from Govt. of AP 0.00 0.00 (4.) Bank Loan/others 0.00 0.00 Total 100.00 259.68 8. Plant and machinery (with Brief Specification)

S.No. Description No. Power Requirement(HP/KW) Cost

1. Kanni Forming Machine 1 2.0 533055.000

2. Diamond Wire Drawing dies of various sizes

100 0.0 301783.000

3. Faceting & Milling Machine 1 1.0 1643000.000

233


4. Faceting & Milling machine for bangles and wedding bands

1 1.0 1770200.000

5. Bangle Design Machine 1 1.5 413400.000

6. wire sheet & rolling Mill 1 1.0 275600.000

7. Gold & Silver Dyes 36 0.0 3339000.000

8. Fly Press Machine 2 1.0 74200.000

9. Gold Melting Machine 1 2.0 201400.000

10. Gold refinery machine 1 2.0 328600.000

11. Hydraulic Coining Press Machine 1 2.0 1340900.000

12. Chain Making Machine 1 2.0 689000.000

13. Laser Welding Machine 1 2.0 1102400.000

14. Fill & Seal Machine 1 0.5 477000.000

15. Laser Marking Machine 1 1.0 1886800.000

16. XRF Machine 2 2.0 4801800.000

17. Assay Balance 1 1.0 694300.000

18. Tools & equipment for sampling 1 0.0 524700.000

19. Furnaces, Scrubber parting tray 1 0.0 413400.000

20. Safety Equipment 1 0.0 601020.000

21. Reference Material 1 0.0 600000.000

22. Personal Computers 5 0.0 185941.000

23. Software with training 1 0.0 67416.000

24. Laser Printers 2 0.0 31875.000

25. Cabling 1 0.0 20200.000

234


26. Accessories 1 0.0 20200.000

Total 22337190

9. Shortcomings • Lease agreement and NOC from Pollution Control Board are required. • Provision should be made regarding name of the state Govt. and MSME officials in SPV. • Commitment letter for contribution and SPV specific account no. are required. • In the SIDBI appraisal lease deed shown for 14 years. • Implementing agency is not identified.

10. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for setting up of Common Facility Centre (CFC) in Gold Jewellary Cluster, Vijayawada, Krishna, Andhra Pradesh.

235

Agenda No. 32.42: Proposal for final approval to up-grade infrastructure facilities at JRD Industrial Estate, Kanuru, Vijayawada, Krishna District, Andhra Pradesh. Proposal was received from Andhra Pradesh Industrial Infrastructure Corporation Limited, Vide Online Ref. No:- 0716 / Dated : 21/09/2012 & recommended by MSME-DI, Hyderabad. Details of the proposal are as under: Pre-registration Information Name of Organization : ANDHRA PRADESH INDUSTRIAL

INFRASTRCUTURE CORPORATION LIMITED

State : ANDHRA PRADESH District : KRISHNA Industrial Estate : JRD TATA INDUSTRIAL AREA SERVICE

SOCIETY Basic Information about Proposal: Proposal received from

Andhra Pradesh Industrial Infrastructure Corporation Limited

Location of site Kanuru, Vijayawada, Krishna District Year of setting up of Indl. Estate (P-5 of DPR)

1996

Present arrangements of maintenance of the industrial estate

Andhra Pradesh Industrial Infrastructure Corporation Limited

Main problems related to infrastructure (P- 13 of DPR)

No proper roads are laid in the industrial estate adversely effecting transportation of raw material and finished good.

Whether appraised DPR received or not Yes Total Area of industrial estate/ area (acre): (P- 10 of DPR)

41.18

Area to be up-graded (acre) 41.18 Number of plots 144 Units set up (P-7 of DPR)

100

Profile of units (micro/women owned/SC, ST) (P-6 of DPR)

59 of the existing units in the industrial estate are owned by women entrepreneurs and 24 units are owned by micro entrepreneurs. 60% of the workforce belongs to SC/ST category and 20% are minorities.

Implementing Period (P-37 of DPR)

24 months

236

Details about Proposal: Description Comments By Cluster

Div

Implementing Agency (IA) (P- 3 of DPR)

Andhra Pradesh Industrial Infrastructure Corporation (APIIC) Limited Parisrama Bhavan, 6th Floor, Basheer Bagh, Hyderabad-500004

An undertaking of Govt. of A.P.

Track Record of the IA (Annex- 37)

APIIC Ltd vested with the objective of providing industrial infrastructure through out the state of AP for development of industrial areas, the Corporation has so far developed more than 300 industrial parks spreading over an extent of about 1,21,655 acres(including allotted area). Besides, the Corporation is also developing sector focussed parks like apparel park/food processing parks/leather parks, Special Economic Zones in the state. The Corporation has also constructed 3500 industrial sheds, 4800 dormitory units, 466 commercial shops.

---

Appraisal by SIDBI (Observations and recommendations). Attach SIDBI report.

The SIDBI appraised the project as technically feasible, economically viable and meet the parameters under the scheme. Attached appraisal report in upload section.

---

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) (P- 13 of DPR)

JRD TATA Industrial Estate is located 5 KM from Vijayawada railway section, 2KM from NH5 and NH9. Electricity and water facilities are available. Availability for local skilled workers and able to quickly adopt to the changes in technology.

---

Whether Zoning regulations and non-agricultural conversion etc complied with): (Annex- 4)

JRD TATA Industrial Estate is located in Industrial notified area and complies with zoning regulations.

Vide G.O. M.s. No. 58 dated 23.02.2007, Govt. of Andhra Pradesh, the industrial estate maintained by APIIC.


Monitoring committee is to be constituted. State Level Committee required.

237



JRD TATA services society is willing to contribute any escalation in cost.

---

Tangible Outcomes of the project (P- 41 of DPR)

Particulars Infrastructure Dev. Program

Before After No. of units 100 144 Turnover Rs. 200

crore Rs. 500 crore

Employment- Direct

2517 6000

Employment- Indirect

4000 8000

---

Project Cost: The project cost for up-gradation of infrastructure facilities at JRD Industrial Estate, Kanuru, Vijayawada, Krishna District, Andhra Pradesh has been estimated at Rs. 767.62 lakh by IA. The break-up of the cost of project and cost eligible for grant from GoI is given here under:

(Rs. in lakh)

S. No. Particulars As per IA As per SIDBI Eligible under MSE-CDP

1. Laying roads 485.00 200.00

2. Road side greenery & social forestry 3.87 3.87

3. Water supply including overhead tanks, and pump houses

36.50 36.50

4. Water harvesting 6.25 6.25

5. Drainage 140.00 60.00

6. Power distribution, Street light arrangements, etc.

50.00 50.00

7. Administrative and Other Services Complex

22.00 22.00

8. Conference Hall/Exhibition centre 4.00 4.00

9. Contingencies & Pre operative expenses :

20.00 20.00

Total 767.62 402.62

238

Means of finance: (Rs. in lakh)

S. No. Particulars Proposed by IA Proposed by SIDBI As per MSE-CDP

1. Govt. of India Grant (80%) 614.10 322.10

2. Others 153.52 445.52

Total 767.62 767.62 Note: Upto 80% GoI is admissible for ID project have more than 50% (a) micro (b) women owned (c) SC/ST units. Before release GoI grant, IA will provide documentary proof to avail 80% GoI grant. Proposal for Steering Committee: Cluster Division recommends the proposal. Committee may consider the proposal for final approval to up-grade infrastructure facilities at JRD Industrial Estate, Kanuru, Vijayawada, Krishna District, Andhra Pradesh at a total cost of Rs. 767.62 lakh with GoI assistance of Rs. 322.10 lakh.

239

Agenda No. 32.43 (i): Proposal for conducting Diagnostic Study in Blacksmith Products Manufacturing Cluster, Barki Lari, Ramgarh, Jharkhand. Proposal was received from MSME-DI, Ranchi, Vide Online Ref. No:- 0938 / Dated : 27/11/2012 & recommended by them. Details of the proposal are as under: Pre-registration Information Name of Organization : MSME-DI, Ranchi

State : JHARKHAND

District : RAMGARH

Cluster Name & Location : Blacksmith Products Manufacturing, Barki Lari Brief Information of Cluster Main Product : Agricultural Implements, Door Fittings, Hand Tools, Home Utensils


Process of manufacturing is completely manual i.e traditional practice. Pollution is at minimum level. It can be checked with modern techniques


No. of Units : 46



50.000



Direct : 150, Indirect : 20 Women : 0, SC/ST : 170


Karmali Karigar Adivasi Udyogik Swavlambi Sahkari Samiti Ltd PO Lari, Ramgarh Shri Gautam Karmali Mob- 09576136502

Main Problems of Cluster : Non Availibility of raw material, finance, marketing, gap of technology, plant & machinery

Any other information : All entrepreneurs belong to ST community hence the formation of this cluster will help significantly in enhancing the livelihood thru employment generation

240




MSME-DI, Ranchi

Project Cost with break up Project Cost Govt. of India grant- Rs. 1.00 lakh Break-up S.N. Particulars Amount

(Rs.) i) Survey of units 45,000 ii) Stationery binding & printing 15,000 iii) Outsourcing of technical expert for

preparation of DSR 20,000

iv) Validation of DSR mtng with association & State Govt., Director of Industries

20,000

Total 100,000


NIFFT, Ranchi, NML Jamshedpur, IDTR, Jamshedpur

Justification for DSR To elevate the socio-economic profile of tribal karmali people & upgradation of their units, also 100% units will be covered for upliftment

Outcomes of conducting DSR Roadmap for further upliftment of the units of tribal village community


Rs. 1.00 lakh

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Blacksmith Products Manufacturing Cluster, Barki Lari, District Ramgarh at a total cost of Rs. 1.00 lakh or actual, whichever is less.

241

Agenda No. 32.43 (ii): Proposal for conducting Diagnostic Study in Food Processing, Ormanjhi, Ranchi, Jharkhand. Proposal was received from MSME-DI, Ranchi, Vide Online Ref. No:- 1164 / Dated : 11/02/2013 & recommended by them. Details of the proposal are as under: Pre-registration Information Name of Organization : MSME-DI, Ranchi

State : JHARKHAND

District : RANCHI

Cluster Name & Location : Food Processing, Ormanjhi Brief Information of Cluster Main Product : Energy Drinks, Fruit Juice , Pickles, Chutney, Honey,

Spices, Tomato Sauce, Puree & Allied Products


NOC will be get from Jharkhand Pollution Deptt. and the waste of this unit will be re-processed

Age of Cluster : 20

No. of Units : 25


Turnover (Per Annum) : (Rs. in Lakhs) 1000.000




Sharad Kr. Poddar Vice President, Jharkhand Small Industries Association, Udyog Bhawan, Kokar Industrial Area, Ranchi Mob-9431115969, 9334852125, 0651-2543429

Main Problems of Cluster : Entire process of procurement, processing & supply chain has to be managed by individual MSEs which is very difficult. Non availability of primary processed raw material, shut down during off season, unorganised sector, no testing facility, no quality packing facility, cleaning

242

facility, absence of cold storage, marketing aspect, proper transport facility.

Any other information : Proposed solution - CFC structure in order to overcome the problems of the member units the CFC is proposed with facilities for solution of given problems.




MSME-DI, Ranchi

Project Cost with break up Rs. 1.00 lakh S. No.

Particulars Amount (Rs. in lakh)

1. Survey of units 0.45 2. Stationery binding & printing 0.15 3. Outsourcing of technical expert for

preparation of DSR 0.30

4. Validation of DSR mtng with associations & State Govt. Director of Industries

0.10

Total 1.00


CSIR, Agriculture Research Institute, Palandu, CFTRI, Mysore, BAU, BIT, Ranchi

Justification for DSR To elevate the socio-economic profile of the people of the area and 100% units will be covered for upliftment

Outcomes of conducting DSR Action plan for DSR is upliftment of MSEs & the people of the area.


Rs. 1.00

Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for conducting Diagnostic Study in Food Processing Cluster, Ormanjhi, Ranchi, Jharkhand at a total cost of Rs. 1.00 lakh or actual, whichever is less.

243

Agenda No. 32.44: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Pump and Foundry Cluster, Rajkot, Gujarat. Proposal was received from Gujarat Industrial and Technical Consultancy Organization, Vide Online Ref. No:- 0531 / Dated : 06/07/2012 & recommended by State Govt. & MSME-DI, Ahmedabad. 1. Basic Information of Cluster Name of Cluster : Pump and Foundry Cluster

Location of Cluster : Rajkot

Main Product : Casting for automobile components, Casting for pumps & machine tools, Centrifugal Pumps and Submersible Pumps


Micro :59 Small : 3 Medium : 0


1st Year- 436.42 2nd Year- 501.89 3rd Year - 613.50 4th Year - NA 5th Year - NA


1st Year- 5 2nd Year- 6 3rd Year - 7 4th Year - NA 5th Year - NA

Employment in Cluster : PUMPS-4100 persons FOUNDRY- 20000 persons

Technology Details : not applicable

Whether DS Conducted : yes

Main findings of DSR : Interactions with various units in the cluster revealed that there is an urgent need to strengthen the following areas: (a) Common Product Development, Testing and Calibration (PDTC) facility within the Cluster. Facilities for conducting a number of important tests such as metallurgical microstructure analysis, NDT (non-destructive testing) analysis such as magnetic particle testing, X-ray and Radiography) and so on are not available within the cluster. Hence, the engineering units have to send their samples to laboratories in Ahmedabad (such as Divine laboratory, in Vadodara (such as TCR Laboratory). In addition, there is a need at the cluster level for a common facility for applications like casting simulation and methoding software, pump design software and other ERP solutions. There is a

244

need for the comprehensive testing facility for pump and electric motors also in the cluster. (b) Export documentation and facilitation services: A number of MSMEs are exporting their products to OEM in Europe and after-sales market in Middle East. However, due to lack of knowledge and inability to complete the documentation formalities, they are unable to claim government benefits such as DEPB (Duty Entitlement Pass Book) Scheme etc. There is a dearth of BDS providers in this area in the cluster. (c) Technical support: Majority of the MSMEs are presently using conventional manufacturing processes such as manual lathe and turning machines. Knowledge about up gradation of manufacturing processes by use of advanced machining centres such as CNC (computer numerically controlled) machines and VMC (Vertical Milling Centre) is not existing among majority of the units. Similarly, most of the machine tool manufacturers in the cluster manufacture conventional machine tools only and do not have knowledge of upgrading to advance machine tool manufacture. (d) Vendor development: Most of the high end product manufacturers are buying castings from foundries located in other clusters such as Kolhapur, Belgaum, Ahmedabad etc due to lack of availability of good quality castings for machine tools within Rajkot. Most of the foundries in Rajkot are primarily catering to diesel engine, pumps and motors and automobile segments. There is a need to develop good local vendors of castings in Rajkot.

Main Problems of Cluster : 1.From the survey result, 65% of the units faced testing related Problems due to unavailability of advance testing laboratory within Rajkot. 2.Currently cluster members have to send samples for testing to EQDC, Gandhinagar and ERDA, Vadodara which results in time loss and transportation cost 3.The cost of carrying out tests is higher which results in higher cost of the final product for the unit. 4.The queue at the present testing facility in Gujarat becomes an obstacle to pump manufacturing to get ISI/BEE certification. This has resulted in decreasing their competitiveness in the market. ISI and BEE both required independent testing laboratory report. As a result the units have to incur more expenses on testing. 5.Testing laboratory takes much time for testing and thus delay in certification. 6.Priority charges to get early turn for testing of products. 7.The cluster members lack technological knowledge and awareness needed for growth and sustainability.

245



(a.) Justification for CFC Only a handful of MSMEs have reach to better technology and affordability to have its own laboratory setup in this cluster. 1.A vast segment of pump units in the cluster can be categorised as micro and lack the vision to modernize and grow their business. Thus the proposed facility will help the cluster in long term to compete in the market. 2. MSME have traditional manufacturing systems and little awareness about the new technologies and product developments due to lack of knowledge of latest technology and know-how, lack of access to finance/capital for expansion/modernization and lack of marketing skills. Thus advance laboratory testing and research centre is required for Rajkot Pump Cluster. 3.The MSME units have need to reduce the cost of testing to able to reduce cost of the product thus the proposed facility will provide testing services at cheaper rate compared to that of prevailing in the market. 4.The casting is the main component for the pump manufacturing units. The proposed facility will provide metallurgical testing facility to foundry units to improve the quality of casting and subsequently the final end product. i.e. pumps and overall quality level of the cluster.

In its comments, Mechanical Division of this office has mentioned that cluster is already equipped with testing facilities.

(b.) Location of CFC Phase II, Plot No 372, Aaji GIDC Estate, Rajkot-360001 Gujarat

--


90 --

246




10 --

(c.) Land for CFC i. Whether land acquired yes Only proposed.

ii. Title is in name of Rajkot Engineering Association Should be in the name of SPV.

iii. Valuation and its basis not applicable NA

iv. Land is sufficient yes --

v. Change of land use Necessary approval from GIDC has been taken

NA

vi. If on lease, duration of lease .......... Proposed on long lease.


................. NA

(d.) Total Building area(sq ft) 18000 square feet --


Rs 265.80 Lacs Construction cost is Rs. 1427 per sq. ft.

(f.) Main Facility Proposed testing facility for pumps and foundry --

(g.) Prod capacity of CFC annexure-7, page 16 Also required in quantitative terms.


1. Wide range of test can be performed. 2.Quality Equipments for accurate testing of the samples. 3.Testing rates are lower compared to other testing lab providing similar services. 4.The CFC will provide complete testing for Pump & foundry units, as a result individual units need not establish their own laboratory, avoiding capital investment for the units. 5.Quality of the product will increase with the testing services of the proposed CFC. 6.Lower testing price & Timely testing services to the Cluster members.

Should be based on turnover, export, employment of the cluster in quantitative terms with time limits.

247



7.The proposed CFC will satisfy certification need of the cluster units and help in competing in the local & international market. 8.It is estimated that 60% of the unit will go for ISO /BEE quality certification with service of proposed CFC. 9.The cluster units will save on testing cost and time. 10.The productivity of the cluster member will increase by 25% and the employment generation will also increase 25%. 11.The number of units that will be benefited from the proposed CFC is 62 members and around 532 non-member units. 12.The number of units going for ISI/BEE certification would increase by 60% 13.The following table provides the measurable outcome in the cluster before and after CFC.


not applicable Consent to establish required.

(j.) Man Power in CFC total 10 Nos --


the testing charge at proposed CFC will be 40% lower than that of prevailing in the market

Details required.



Division

(a.) Name and Address Rajkot Engineering testing and Research centre, Plot No. 58/1, Bhaktinagar GIDC, Rajkot-360001

--

248




Company Under section 25 of the companies act 1956

--


Government of Gujarat --


26 September, 2011 --

(e.) Number of Members 62- all are from Micro Category Details of only 59 nos. given.


Yes --


Rs. 5,00,000 --


Rs. 5,00,000 --

(i.) Shareholding Pattern Total 10 Directors each holding 5000 shares of Rs. 10 each

--


Commitment letter for contribution is provided

Commitment letter is not received.

(k.) SPV specific A/c Bank of India Bhaktinagar SME branch, Rajkot - A/c No. 312120110000629

--


The REA (Rajkot Engineering Association) is operating raw material bank which provides services around 500 micro and small foundry units of Rajkot. At present they are procuring pig iron, which is the major raw material for foundry. In the FY 2009-2010 the raw material bank has traded 2983.25 MT of pig iron with a turn-over of Rs. 69 Lacs.

Details of SPV activities is required.

(m.) Technical Institution The Energy Research Institute (TERI), New Delhi

--

(n.) CFC may be utilised by SPV members as also others in a cluster. However, evidence should be furnished with regard to SPV member ability to

The usage of CFC by the members has been considered at present for the financial projection purpose. The rate of non-members will be different than that of members. However at present we have not considered revenue generation

Commitment of atleast 60% utilization of installed capacity is required.

249



utilise at least 60 percent of installed capacity.

from the non-members. The parameter such as utilization of the facility and rate of service etc. is based on the market survey carried out by GITCO. The survey was spanning across Pump Manufacturers, Foundry units and Testing Laboratories of Gujarat

(o.) (a) Power requirement for commercial/ domestic purpose

Commercial Purpose --

(b) Water 1. For domestic purpose- 1000 Ltr. per day 2. For testing purpose- 10000 Ltrs. per month

--

(c) Gas/Oil/Other Utilities not applicable -- 4. Implement Arrangements Description Proposed by Implementation


Division

(a.) Implementing Agency --- Should be CED, Ahmedabad.

(b.) Fund receiving Agency ---

(c.) Implementation Period 8-10 months from the approval of the proposal and from respective government. ( as per annexure-15, page no-63)

Should be 2 years from the date of final approval.


DPR has been submitted to SIDBI. Appraisal report is awaited.



. The comments of Technical Division alongwith other observation conveyed to State Govt. on 3.12.12. Reply awaited.


. Yet to be place before the Technical Committee.

(h.) Working capital(In-principle sanction of loan

not applicable In-principle approval of working capital is required.

250

from a bank, if applicable arrangement made) 5. Financial Analysis of CFC



(a.) BEP break even comes at 25% for third year at 65% capacity utilization

--

(b.) IRR, Payback period IRR @ 16.89% Pay back period comes at 5 years

--

(c.) DSCR Not applicable as SPV will be getting grant from GOI/GOG, so there wouldn't any debt component in project

--


10.31% 25% is desirable as per the guidelines.

(e.) NPV NPV @ 10% comes Rs.321 crores --

(f.) DER Not applicable as SPV will be getting grant from GOI/GOG, so there wouldn't any debt component in project

--

(g.) Sensitivity Analysis Annexure-16 (page No.-65) -- 6. Total Cost : The total cost of the CFC is as follow:










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7. Means of Finance: The suggested means of finance are as follows:

Particulars %age Amount (Rs. in lakh) (1.) SPV contribution 10.00 74.12 (2.) Grant-in-aid from Govt. of India 56.88 421.63 (3.) Grant-in-aid from Govt. of 33.11 245.40 Total 100.00 741.15 8. Shortcomings:-

Ø Land yet to be registered in the of SPV, Ø Major outputs should be based on turnover, export, employment of the cluster in

quantitative terms with time limits. Ø Consent to establish from Pollution Control Board. Ø Details of revenue generation, Ø Details of SPV activities towards trust building, Ø Commitment letter of SPV contribution, Ø Commitment of atleast 60% utilization of installed capacity, Ø Clarification regarding IA. Ø In-principle approval of working capital. Ø As per DPR, ROCE is 10.3%, However, as per guidelines, ROCE is excess to 25% is

desirable. Ø SIDBI appraisal.

9. Proposal for the Steering Committee: Cluster Division recommends the proposal for ‘In-principle’ approval so that complete proposal as per guidelines including SIDBI appraisal is submitted by the State Government within six months, failing which the proposal shall be dropped. Steering Committee may consider the proposal for in-principle approval for setting up of Common Facility Centre (CFC) in Pump and Foundry Cluster, Rajkot, Gujarat.

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Agenda No.:- 32.45 Proposal for Soft Interventions of Turmeric, Sangli, Maharashtra. Proposal was received from Turmeric Cluster Sangli (SPV), Vide Online Ref. No:- 0787 / Dated : 14/10/2012 & recommended by MSME-DI, Mumbai. DSR Details DSR Conducted By : MITCON Consultancy & Engineering Services Pune

Validated By : MSME-DI Mumbai, DIC Sangli, NABARD, Halad Sanshodhan Kendra, Govt. Polytechnic and Cluster Actors


When Completed : 21/02/2012 Pre-registration Information Name of Applicant : Turmeric Cluster Sangli

State : Maharashtra

District : Sangli

Cluster Product & Location : Turmeric, Sangli Brief Information of Cluster

Main Product : Polished Turmeric, Turmeric Powder


At present semi-mechanized technology along with conventional drying, polishing & packaging is being used in the cluster. Non-polluting processes & Turmeric processing & manufacturing does not lead to pollution of any kind.

Age of Cluster : 80

No. of Units : 130



8000.00



Presence of association/NGO, M/s Sangli Turmeric Cluster Pvt. Ltd.

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Contact details : Contact Details - (0233)2322101 Fax No. - (0233)2322102 Mob No. - +91 9823053598


Would create awareness amongst Entrepreneurs about the advantages of Cluster approach & result into maximum no. of participation.


Being the first this kind of a cluster, at present no competition is seen. In fact, cluster approach would generate more revenues & explore international avenues. Thus would help to establish Turmeric Sangli as international quality & brand.

Main Problems of Cluster : Non availability of testing facilities, lack of R&D, lack of awareness & facility of export quality packaging, conventional polishing process, lack of brand image etc.

Need for CFC, if any : Yes, CFC is required, & has been proposed as Hard Interventions in Diagnostic Study Report.

Any other information : 1)Sangli region has been internationally acknowledged as "Turmeric City". 2)Ample quantity of turmeric locally produced as well as turmeric produced from various states transported to this region to store turmeric for long duration at local village Haripur, which is known for its quality of soil to store Turmeric in its original form retaining valued contents for long duration with minimum storage cost & provide good quality of raw material.

Analysis of Proposal Parameters Proposed by Implementation Agency



District Industries Centre Sangli. Being the district office of State Govt. of Maharashtra, has been well conversed with Cluster Development.

MIDC, Mumbai should be the implementing agency.


Capacity building & trust building, technology upgradation, quality control & standardization, product development & value added products, marketing development assistance.

As per guidelines.


Yes. Stakeholders have validated the Diagnostic Study Report, copy of the same with letter from General Manager, DIC Sangli.

Yes, DSR validated by the stakeholders.

Project Cost with break up : (Rs. in lakh)

Project Cost : 20.02 GOI Contribution : 18.36

Recommended as per revised action plan

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Cluster Beneficiaries : 2.04 PC - 20.02 GoI : 14.84 Cluster actors : 5.18


Halad Sanshodhan Kendra, PVPIT, Chamber of Commerce Sangli, CFTRI Mumbai.

Expert agencies are associated.

Justification for SI The Soft Intervention Program is aimed towards Networking, Capacity Building, Technology upgradation & Market Development of Turmeric Cluster in Sangli. The Turmeric units (especially Micro Enterprises) from this region have formed Special Purpose Vehicle (SPV) i.e. M/s Sangli Turmeric Cluster Pvt. Ltd to carry out soft interventions in Turmeric Cluster, Sangli under MSE- CDP Scheme of O/o DC MSME, Govt. of India , New Delhi.

As per guidelines.


Drying: Having created common drying facility would not only substantially reduce the drying hours to 36 to 48 hours from 400 to 450 hours & uniform drying but would provide hygienic conditions so as to ensure Curcumin percentage to the tune 3 to 4%. Polishing: Primary processing units & powder making units would avail polishing processes made available in Common Facility Centre wherein dust proof polishing machine in stainless steel would avoi

Likely outcomes indicated in the proposed action plan against each activity.


S. No. Description Total GOI Association Likely Outcome 1 Trust Building (4 Meetings)

– Cluster awareness programme integration of MSE-CDP Scheme with NMCP

0.80 0.72 0.08 Would create awareness amongst Entrepreneurs about the advantages of Cluster approach & result into maximum no. of participation.

2 Building Awareness (2 programmes) – Awareness programme various Central and State Govt. Schemes

0.80 0.72 0.08 Would create awareness amongst Entrepreneurs about various Govt. Schemes available & would help them to draw business strategies.

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S. No. Description Total GOI Association Likely Outcome 3 Organizing training –

programmes/seminars/worshop/study tours to other clusters - Seminar on Export procedure and documentation,

0.60 0.48 0.12 1) Cluster members would acquire detailed knowledge about the various facilities & Schemes available from Financial Institutes for Micro & Small Enterprises which would help them to explore business opportunities. 2) Would get exposure about Export procedures which in turn would help to explore avenues abroad.

4 Workshop on improvement in testing facilities and bio-technology interventions

0.80 0.64 0.16 1) Resulting in the increased yield. 2) Would identify & add-on to the Curcumin percentage in analyzing the rhizomes. 3) Entrepreneurs would be educated about various Tests & the importance of Testing while selection of quality raw material & finished products which would help in reducing the percentage of rejection & improving quality.

5 Interactive seminar with banks and financial institutions for adequate working capital requirements and credit flows.

0.60 0.48 0.12 The expected overall impact of the cluster programme is to enhance mobilization of financial resources to support sustainable economic growth, create awareness about global financial scenario, credit terms, letter of credit, financial documentation etc.

6 Study tour to other clusters 1.00 0.80 0.20 Entrepreneurs from cluster would get an opportunity to witness extraction of Value Added Products (i.e. Curcumin) on field.

7 Seminar on packaging for exports

0.40 0.32 0.08 1) Would generate more awareness about quality prospects & standards. 2) Would invite more attention with respect to international standards & packaging norms.

8 Awareness programme on 0.30 0.24 0.06 Would sensitize & spread

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S. No. Description Total GOI Association Likely Outcome Bar Code awareness amongst the Cluster

Actors to obtain Barcode, thus to increase retail supply.

9 Capacity Building – Brochure preparation

0.50 0.30 0.20 Will serve to be a vital tool for advertising & provide information & the latest updates and newest products and services nationally & internationally.

10 Website designing/development and launching common marketing brochure

0.50 0.30 0.20 Cluster beneficiaries would reach to the global market demand & showcase supply & quality, strengths of the turmeric & value added products.

11 Service of BDS provider (@ 15,000 p.m.) – marketing and business development executive

2.70 2.43 0.27 1) Knowledge of latest CGMP (Good Manufacturing practices) 2) Knowledge of latest methodology of extraction. 3) Knowledge of latest trend in marketing & international market.

12 Participation in one foreign fair – participation in foreign exhibition

5.00 2.50 2.50 Participation would provide exposure to international market trend.

13 Misc. development cost – participation in domestic trade fair / exhibition related development cost.

1.50 1.20 0.30 Cluster beneficiaries would organize buyer seller meet at Mumbai to generate more business. This platform would provide common opportunity to built up trade relations.

14 Local organizer (@ Rs.9,000 p.m for 18 months)

1.62 0.81 0.81 Will help to strengthen the bonds between the members of the community work for the general welfare of the community.

15 Local travel staff, telecommunication etc.

0.90 0.90 0.00 Will help organize action or share information about events in the area.

16 Purchase of laptop with printer and projector

0.75 0.75 0.00 Will help to store, retrieve, process, and transmit data and information of all types.

17 Participation of CDE/CDA/Cluster official

1.25 1.25 0.00 Visit of CDE/CDA/Cluster official along with

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S. No. Description Total GOI Association Likely Outcome along with entrepreneurs of the cluster. Economy /excursion fair + TA

entrepreneurs.

Total 20.02 14.84 5.18 Proposal for Steering Committee: Cluster Division recommends the proposal. Steering Committee may approve the proposal for Soft Interventions in Turmeric Cluster, Sangli, Maharashtra for 18 months at a total cost of Rs. 20.02 lakh and GoI grant of Rs.14.84 lakh & the remaining Rs.5.18 lakh to be contributed by cluster units/associations.

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