Volume 54
:::: IN THIS ISSUE ::::

OUR INITIATIVES
  • Meeting with SHG:-Aawda village, Sheopur

KNOW YOUR CLUSTER

  • Chennai Auto Component Cluster
INFORMATION SHARING CORNER
  • Diagnostic study
CLUSTER DEVELOPMENT-ISSUES AND POLICIES
  • Modifications in the guidelines of Micro and Small Enterprises - Cluster Development Programme (MSE-CDP).
  • Cabinet nod to mkt development assistance for khadi
  • Clusters to help UP weavers to compete globally
  • SHG products on display at PMC exhibition from today
  • Punjab's industrial sector to get a new boost in coming two years
  • Microsoft India brings Affordable Online Software Solutions to Tirupur Manufacturers
  • No funds released for trade policy initiatives
  • Programmes for strengthening textile industry

ENERGY & ENVIRONMENT ISSUES

  • Solar mission goal may be scaled down 80 percent
  • Obama Announces $2.3 Billion in Tax Credits for Clean Energy
  • Offshore wind farm plans could bring huge opportunities to Wales
  • Brunei To Take Part In Globe 2010
  • Google to Start a Green Utility?
  • High-Performance Green Buildings
  • India Will Meet Its Copenhagen Climate Commitment, Ramesh Says

INFORMATION COMMUNICATION TECHNOLOGIES (ICTs)

  • Investments in infotech infrastructure pushed
  • Small enterprises to reap high returns from ICT growth
  • 15% growth rate projected for domestic IT, ITeS mkt in 2010
  • Imbibe ICT Culture for Good Governance, Legislators Told
  • Why India Became A Safe Heaven For Cyber Criminals?

INTELLECTUAL PROPERTY RIGHTS (IPR)

  • Nokia files third suit against Apple
  • India to formulate new science and technology policy
  • Industry flays IPR pact with WIPO
  • Expert suggests new topics in cross-strait IPR negotiation
  • Udupi brinjal up for GI status

MICRO, SMALL & MEDIUM ENTERPRISES (MSMEs)

  • Khadi gets Rs 725 cr from ADB for development
  • Credit likely to cost more for MSME sector
  • Shri Dinsha Patel emphasizes the need for banks, KVIC and DIC to become pro-active
  • Pledges abound to help MSMEs grow the nation
  • MSME ministry to submit task force report to PM soon

FORTHCOMING EVENTS

  • Automotive Testing Expo India 2010
  • Schweissen & Schneiden India
  • International Leather Goods Fair 2010
  • India International Seafood Show 2010
- EDITORIAL SUPPORT -

Minakshi Mehra

• B P Singh

 

 

 

 

 

 

 

 

 

 

 

 
 
CLUSTER DEVELOPMENT - ISSUES & POLICIES

::: IN FOCUS :::
Modifications in the guidelines of Micro & Small Enterprises - Cluster Development Programme (MSE-CDP)

The Cabinet Committee on Economic Affairs approved the modifications in the guidelines of Micro and Small Enterprises - Cluster Development Programme (MSE-CDP).

The major modifications approved the CCEA include:

(i) Enhancement of the maximum project cost for Common Facility Centre (CFC) from Rs. 10 crore to Rs 15 crore, with Government of India contribution of 70% (90% for Special Category States and for clusters with more than 50% women/micro/village/SC/ST units);

(ii) Enhancement of the maximum project cost for Infrastructure Development from Rs 5 crore to Rs 10 crore, with Government of India contribution of 60% (80% for Special Category States and for clusters with more than 50% women/micro/SC/ST units);

(iii) Enhancement of the maximum project cost for Soft interventions from Rs 10 lakh to Rs 25 lakh, with Government of India contribution of 75% (90% for Special Category States and for clusters with more than 50% women/micro/village/SC/ST units); more

Cabinet nod to mkt development assistance for khadi :-
...............................................................................

The government today approved a scheme for financial assistance to khadi and polyvastra, a synthetic variety of khadi, at an estimated cost of Rs 345.05 crore, which will be spent over the next two financial years.
more...

Clusters to help UP weavers to compete globally :-
...............................................................................

The Union Ministry for Textiles is all set to launch its cluster development scheme across five districts of the state of Uttar Pradesh. To impart training to weavers of the state is the key objective of this development program, in order to make the weavers capable of competing on international platform. more

SHG products on display at PMC exhibition from today:-
...............................................................................
The Pune Municipal Corporation (PMC), which now boasts of 7,000 registered women's Self-Help Groups (SHGs) with its Urban Cluster Development (UCD) cell, will hold a five-day long exhibition displaying various handicrafts, household utilities at three different places in the city, beginning Thursday, in an attempt to explore markets for them.
more...

Punjab's industrial sector to get a new boost in coming two years :-
...............................................................................
The Punjab Government has formulated a massive action plan to rejuvenate the existing industry and generate a conducive climate through infrastructure creation in the coming two years.
more...

Microsoft India brings Affordable Online Software Solutions to Tirupur Manufacturers :-
...............................................................................
Tirupur Exporters' Association (TEA), to Offer Relevant IT Solutions for the Textile Cluster in a 'pay as you go'Model through G-Tech Info Solutions (Intl.) Pvt. Ltd.

Project Vikas launches online solutions for SMEs in Tirupur, encompassing textile manufacturers and exporters .
more...

No funds released for trade policy initiatives :-
...............................................................................
The finance ministry has not released a single penny allocated in the federal consolidated outlay plan for 2009-10 to the ministry of commerce for undertaking different trade policy initiatives, The News has learnt.
more...

Programmes for strengthening textile industry :-
...............................................................................
In order to facilitate modernization/ technology upgradation of textile mills, Government of India had launched Technology Upgradation Fund Scheme (TUFS) for textile and jute Industries with effect from 1.4.1999 for a period of 5 years which was subsequently extended upto 31.3.2007 and further extended during Eleventh Five Year Plan.
more...

ENERGY & ENVIRONMENT ISSUES

Solar mission goal may be scaled down 80 percent :-
...............................................................................
The goal of India's solar energy mission to produce 20,000 MW of power from the sun by 2022 may be reduced by as much as 80 percent before the prime minister formally inaugurates the mission here Monday, official sources said. more

Obama Announces $2.3 Billion in Tax Credits for Clean Energy :-
...............................................................................

On the day that it was confirmed there were 85,000 jobs lost in the U.S. in December the country's President Barack Obama announced that he hoped to create 17,000 jobs by allocating $2.3 billion in tax credits to the clean energy manufacturing sector. more...

Offshore wind farm plans could bring huge opportunities to Wales :-
...............................................................................
Jan 8, 2010 the Government announced the winners of leases to develop nine offshore wind farm sites. Chris Kelsey assesses what the development could mean for Wales IT would be difficult to overstate the importance of the Crown Estate's announcement of the consortia selected to develop the next round of offshore wind sites.   more...

Brunei To Take Part In Globe 2010 :-
...............................................................................
Bandar Seri Begawan - Brunei will be joining the world again to explore and discuss issues that lie at the bean of corporate sustainability, global energy and environment priorities, emerging environmental markets, and the future of sustainable urban development, in a conference to be held in Canada in March this year.  
more...

Google to Start a Green Utility? :-
...............................................................................
Google is doing a lot these days to help the environment. Now, they have just filed to buy and sale wholesale electricity. Are they looking to enter the utility market?  
more...

High-Performance Green Buildings :-
...............................................................................
It pays to go green with new construction. According to the US Green Building Council (USGBC), green buildings cost no more to build-and sometimes less-when project teams take an integrated design approach that considers sustainability goals throughout the whole building lifecycle.  
more...

India Will Meet Its Copenhagen Climate Commitment, Ramesh Says :-
...............................................................................
India will include its proposal to limit greenhouse gases through 2020 in the Copenhagen climate- change agreement, meeting a pledge made last month, the environment minister said.  
more...

INFORMATION COMMUNICATION TECHNOLOGY

Investments in infotech infrastructure pushed :-
...............................................................................
TO ensure the country will maximize the benefits of information communications technology (ICT), a veteran legislator stressed that the government and the private sector must invest toward beefing up the ICT infrastructure. At the same time, he said there must be a permanent body that would promote ICT utilization and to "effectively coordinate and implement national and local ICT services."
more

Small enterprises to reap high returns from ICT growth :-
...............................................................................
Small and medium sized enterprises (SMEs) stand to reap the most from investments in information communication technology as new studies say such businesses can enhance their profitability by adopting the internet and mobile telephony.
more...

15% growth rate projected for domestic IT, ITeS mkt in 2010 :-
...............................................................................
Important structural changes, brought about by the impact of the economic slowdown, will accelerate industry transformation. The domestic information technology (IT) and IT-enabled Services (ITeS) market, excluding exports, is expected to grow at a rate of 15 per cent in 2010 to touch a revenue of Rs 120,666 crore, according to advisory services and research firm IDC.
more

Imbibe ICT Culture for Good Governance, Legislators Told :-
...............................................................................
The Benue State House of Assembly, alongside other States, has been told to immediately imbibe the culture of ICT for its obvious advantages to good governance.
more

Why India Became A Safe Heaven For Cyber Criminals? :-
...............................................................................
Cyber Law in India is an essential part of Information and Communication Technology (ICT) regulations in India. ICT has brought before the government of India (GOI) certain challenges that it was not willing to accept and rectify. The worst among them are coming in the form of technology-assisted terrorism and cyber terrorism.
more

INTELLECTUAL PROPERTY RIGHTS (IPRs)

Nokia files third suit against Apple :-
...............................................................................
Nokia is determined not to leave any stone unturned in its legal battle against Apple, and has filed its third lawsuit in three months, this time returning to the US District Court in Delaware. The new broadside comes less than a week after it made a complaint to the US International Trade Commission, seeking an injunction against Apple products that, it claims, infringe seven of its patents.
more

India to formulate new science and technology policy :-
...............................................................................
India is planning to develop a suitable science, technology and innovation policy framework to encourage innovations. At the end of the current 11th plan, India might need a strategy to assess and measure the economic impact pf R&D and technology-led GDP growth and prepare a roadmap for adequate investments into the science, technology and innovation during the 12th plan period.
more

Industry flays IPR pact with WIPO :-
...............................................................................
The government's plan to take the help of the World Intellectual Property Organisation (WIPO)-a UN arm-to put into action an intellectual property rights (IPR) strategy has met with strong disapproval from a section of the local pharma industry, which suspects the arrangement would benefit only multinational patent holders.  
more...

Expert suggests new topics in cross-strait IPR negotiation :-
...............................................................................
An expert on cross-strait intellectual property rights (IPR) issues suggested Friday three new topics when both sides of the Taiwan Strait discuss the issue in their next round of talks.
more..

Udupi brinjal up for GI status :-
...............................................................................
Is the humble Udupi gulla (a brinjal variety) going to bask in the same fame as Nagpur oranges or Darjeeling tea? What makes these goods famous is their place of origin and unique taste.
more..

MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

Khadi gets Rs 725 cr from ADB for development :-
...............................................................................
Union Micro, Small and Medium Enterprises Minister Dinsha J Patel today said a loan of Rs 725 crore (USD 150 million) has been approved by the Asian Development Bank to develop khadi industry in India. more

Credit likely to cost more for MSME sector :-
...............................................................................

While the credit offtake had picked up marginally, public sector banks were keeping idle cash for higher returns detrimental to the interest of the Micro, Small and Medium (MSME) Sector, Federation of Indian Export Organisations President A Sakthivel said. more...

Shri Dinsha Patel emphasizes the need for banks, KVIC and DIC to become pro-active :-
...............................................................................
The Minister for MSME, Shri Dinsha Patel attended the Rashtriya Hastshilp Mahotsav 2010 organised by Jharkhand Khadi and Gramodyog Board at Jamshedpur. Speaking on the occasion the Minister complimented the organizors for organizing such a good Mela and distributed prizes to the Stalls as well as to the Weavers and workers of this sector. He desired that such exhibitions and Melas should be organized in other States also.   more...

Pledges abound to help MSMEs grow the nation :-
...............................................................................
MCX's essense and I n d i a m a r t ' s team's presence marked the second day of the Milagrow conference . Rajeev Karwal and his team were on the floor with sleeves rolled up to make the best out of the best opportunity in the whole spectrum of business.  
more...

MSME ministry to submit task force report to PM soon :-
...............................................................................
The ministry of micro, small & medium enterprises (MSME) will soon present the high-powered task force report on implementation of the new Prime Minister's Employment Generation Programme (PMEGP) to Prime Minister Manmohan Singh.  
more...

FORTHCOMING EVENTS

  • Automotive Testing Expo India 2010 | more |
  • Schweissen & Schneiden India | more |
  • International Leather Goods Fair 2010 | more |
  • India International Seafood Show 2010 | more |


  •  
    :::: OUR INITIATIVES ::::

    Meeting with SHG:-Aawda village, Sheopur

    Meeting with SHG

    ACDS (Clusterkraft) organized a meeting with women SHG on January 8, 2010 in Aawda Village, Sheopur with the help of MPRLP team (Madhya Pradesh Rural Livelihoods' Project), to endow them with information about wooden toy cluster. The meeting was organized as per pre- existing involvement of females in wooden work as well as their willingness to learn new skills. The Women SHG was considered because:-

    1. It would involve family participation thereby making the work more lively and creative.

    2. March onwards major work in the districts would be related to agriculture.

     
    :::: KNOW YOUR CLUSTER ::::
    Chennai Auto Component Cluster
    Today Chennai is popularly known as Hub of automobile industry and also known as Detroit of India. The auto component cluster at Chennai is an induced one, and has been linked to the established of the larger industries like Ashok Leyland, TVS Group, Rane Group and Amalgamation group of companies.

    Chennai is located in the northern part of Tamil Nadu and well connected with sea, Air, Train & road routes with vast National / International network.

    The core cluster actors in Chennai auto component cluster could be Large and Medium enterprises, Vendors to these large firms, Small firms catering to replacement markets, Job shops in metal cutting, grinding, metal forming, Foundries, Heat treatment units, Forging units, OEM manufacturers of vehicles- as customers and Material supplier.

    There are about 40 medium and large enterprises. Most of the Industries in this category are sub assembly manufacturers supplying to OEMs in India. Some of these units have also entered the export markets recently. Number of SMEs is high in the cluster. It is estimated that number is more than 200 firms. Mostly they are catering to replacement market because of low product cost.

    There are about 1000 job shops. However most of them cater to not only automobile industry but also other engineering industry. The units with advanced technology machine tools like CNC lathes, Machining Centres etc., employ diploma holders, Engineering graduates who are then trained in parts programming and then put on the job. However such units are less in number. Some of the units expressed that enough CNC trained operators were not available in the cluster. The wages and facilities provided to the employees are not good.

    Many industries are not quality certified. They have got low margins because of cutthroat competition among this group of industries. There are approximately 31 foundries in the cluster. About 21 of them are SMEs. 50% of them are ISO-9000 certified. There are few Heat Treatment units existing with good facilities and manufacturing practices. They are getting constant pressure from the OEMs in delivery schedules. Few units are ISO 9000 certified.

    Some of the Threats for the cluster are Quality is poor and rejection rates are high. Absence of sufficient testing facilities, Sense of insecurity due to 'tierisation', Non-broadening of market horizon, Resigned attitude of management due to recession, Weak linkages between SMEs and Institutions, Technology up gradation slower, Low Research & Development efforts, Inadequate flow of market information, Size of firm &Economies of scale low, Scattered production of auto components in the SSI Sector, Technically sound but needs inputs and guidance in financial, management and cost effectiveness.

    Some of the Strengths are easy availability of trained and skilled manpower, managements with technical background, easy availability of raw materials and other inputs, presence of many Auto component majors in the region, presence of Giant automobile industry like Ashok Leyland, Ford, Hyundai, Car Plant, and Royal Enfield, availability industrial parks with state-of-art technology, annual growth rate of production and exports of auto components is high.
     
    :::: INFO CORNER ::::
    Diagnostic study

    The in-depth information to identify the clusters' strengths and weaknesses is obtained through the diagnostic study of clusters. A diagnostic study provides a broad framework, which will need to be regularly fine-tuned and revised with the stakeholders. The main objectives of a cluster diagnostic study are to understand the socio-economic environment of the cluster, identify the most effective leverage points for intervention and develop a baseline for future monitoring and evaluation. Also it helps in building initial trust with and among the stakeholders.

    Based on the findings of the diagnostic study, and working with the cluster stakeholders, a vision and action plan for the cluster and a strategy to achieve it will be drafted

     

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