Volume 55
:::: IN THIS ISSUE ::::

OUR INITIATIVES
  • Workshop on Energy Conservation

KNOW YOUR CLUSTER

  • Maheshwar Handloom Cluster
INFORMATION SHARING CORNER
  • Public-private partnership (PPP)
CLUSTER DEVELOPMENT-ISSUES AND POLICIES
  • Budget 2010: A lost opportunity for MSMEs once again
  • Stimulus packages prevented decline of Handicrafts exports says Thiru. Dayanidhi Maran
  • Cabinet nod to mkt development assistance for khadi
  • A company for weavers to come up soon
  • Stakeholders urge African countries to adopt economic and innovative forms of energy
  • CII's district plan begins with Howrah
  • Thiru. Dayanidhi Maran inaugurates handicrafts Cluster Sourcing exhibition over Rs 6 crore distributed tobeneficiaries artisans
  • 'Business incubator' will help grow entrepreneurship
  • Schemes for knitwear cluster discussed
  • MIPR to focus on halal brand, aquaculture, eco-tourism
  • Indian industry lacks strategic depth: CII-BCG

ENERGY & ENVIRONMENT ISSUES

  • Angry Villagers Bear Pollution Costs of Sponge Iron Industry
  • Dr. Abdullah advocates use of Renewable Energy for green and pollution free Arunachal Pradesh
  • Infrastructure looks beyond funding

INFORMATION COMMUNICATION TECHNOLOGIES (ICTs)

  • Business opportunities in ICT
  • Malaysia banks on ICT to meet 2020 development goals
  • Government of Australia Invests $40 Million (AUD) For Teachers' ICT Training
  • Now Skoool web technologies in all Kerala schools
  • How ICTs Are Changing the Way We Live: eLearning Africa Launches Online Photo Competition

INTELLECTUAL PROPERTY RIGHTS (IPR)

  • Bhagalpur tussar silk inches closer to patent
  • FICCI organises seminar on IPR
  • Israel and the US have reached an agreement on pharmaceutical intellectual property
  • Handloom & handicraft clusters should apply for IPR - expert
  • EPO resumes IP-related projects in the ASEAN countries
  • IIPA Report Documents Copyright Theft in 39 Countries

MICRO, SMALL & MEDIUM ENTERPRISES (MSMEs)

  • Vendor development programme
  • Govt launches design scheme for MSME units
  • Govt to implement Task Force's suggestions on MSME
  • Panel to examine administrative set up for MSME development
  • MSME Ministry seeks Rs 5,500 cr support
  • PSUs to buy 20% of total purchases from MSMEs

FORTHCOMING EVENTS

  • Bangalore International Automotive Expo 2010
  • HITEX Pharma Show 2010
  • Aahar International Food Fair
  • National Conference on Emerging Trends in IT and Communication Systems
- EDITORIAL SUPPORT -

• Minakshi Mehra

• B P Singh

 

 

 

 

 

 

 

 

 

 

 
 
 
CLUSTER DEVELOPMENT - ISSUES & POLICIES

::: IN FOCUS :::
Budget 2010: A lost opportunity for MSMEs once again

Let me, at the outset, say that though overall it is a progressive budget with clear focus on infrastructure, agriculture and inclusiveness, it does not mean much for the MSME sector

For the micro, small and medium enterprises, although there has been an apparent increase of approximately Rs. 800 crore, some of the major announcements which were expected in the budget were sorely missing.

It was expected that the MSMEs would atleast get a 50% reservation out of the total quota of 40% reservation of the priority sector lending. Internationally, in most of the developed/ developing countries, MSMEs get between 40% and 60% of the banking loans, whereas in India, it languishes between 8 - 10%. This is the biggest reason for MSMEs to not be able to grow, turn sick, or resort to taking money from the parallel economy at much higher rates. more

Stimulus packages prevented decline of Handicrafts exports says Thiru. Dayanidhi Maran :-
...............................................................................
The two stimulus packages announced by the Government in December 2008 and January 2009 for providing relief to the exporters , has helped preventing the decline in exports of Handicrafts. As per latest exports data, handicrafts exports grew by 11% in January 2010 as compared to the corresponding period of last year . Thiru. Dayanidhi Maran said this, while addressing the Consultative Committee of Members of Parliament attached to Textiles Ministry, here yesterday. 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...

A company for weavers to come up soon :-
...............................................................................
Weavers in and around Tiruchi district will benefit in a big way when the Handloom Textiles Producers' Company Limited and a common facility centre will be established in course of time at Manamedu village near Musiri.
The company, being formed as part of the endeavour to promote and develop weaving sector by the Textiles Committee, an organ of the Union Ministry of Textiles, will enrol all the 3,000-odd weavers in and around Tiruchi and will be manned by a board of directors. more...

Stakeholders urge African countries to adopt economic and innovative forms of energy :-
...............................................................................
African countries have been urged to adopt solar and other economic and innovative forms of energy instead of oil and fossil fuels to avoid effects of climate change on their development. more...

CII's district plan begins with Howrah :-
...............................................................................
Despite industry being the chief polluter in the city, it is the same industry which can play a leading role in limiting this pollution and spreading awareness, Howrah district magistrate Sanghamitra Ghosh said here on Friday. more...

Thiru. Dayanidhi Maran inaugurates handicrafts Cluster Sourcing exhibition over Rs 6 crore distributed tobeneficiaries artisans :-
...............................................................................
Thiru. Dayanidhi Maran, Union Minister of Textiles inaugurated an Exhibition -cum sale "Cluster Sourcing Show" of Handicraft products developed through Cluster Development Scheme at Dilli Haat, here today. The Objective of the "Sourcing Show" is to provide a platform for marketing / business development support to the Handicraft products crafted by artisans by organizing themselves into Self Help Groups (SHGs) under the above Scheme of the Ministry of Textiles. more...

'Business incubator' will help grow entrepreneurship :-
...............................................................................
We generally take into account the performance of business and agriculture to assess gross domestic product (GDP) or gross domestic income (GDI). It is the market value of all final goods and services made within the country in a year. It is often positively correlated with the standard of living. more...

Schemes for knitwear cluster discussed :-
...............................................................................
With an aim to make knitwear cluster more competitive, a workshop was held to impart information about the schemes of the Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) here on Saturday evening. more...

MIPR to focus on halal brand, aquaculture, eco-tourism :-
...............................................................................
PROMOTION of the "Halal" brand, aquaculture and eco-tourism have been identified as the area of focus for the development of SMEs (Small and Medium Enterprises) into the international market, said a senior government official. more...

Indian industry lacks strategic depth: CII-BCG :-
...............................................................................
Higher, and rising, labour productivity, in part due to better educated and trained labour force, and superior infrastructure explain China's massive lead over India in manufacturing. Indian industry is still nowhere near being able to challenge China, says a study conducted by The Boston Consulting Group (BSG) for the Confederation of Indian Industry (CII). more...

ENERGY & ENVIRONMENT ISSUES

Angry Villagers Bear Pollution Costs of Sponge Iron Industry :-
...............................................................................
At dawn, 65-year-old Indian share farmer Gundicha Rout goes to the stone water trough in his backyard to wash his face and prepare for paddy husking. He reaches out for the water, dipping into a thin film of oil on its surface. As he swishes the water in his mouth, there is a bitter metallic taste. more

Dr. Abdullah advocates use of Renewable Energy for green and pollution free Arunachal Pradesh :-
...............................................................................
Dr. Farooq Abdullah, Union Minister for New & Renewable Energy has called for greater use of renewable energy for ensuring a greener and pollution free North East. Appreciating the region for its abundant resource and forest cover, he stressed the importance for its maintenance. The Minister observed that the renewable energy in the border areas will serve as a boon to the people as it would not only provide electricity but also ensure dissemination of proper information and knowledge about health, education, and environment etc. through electronic means. Dr Abdullah was in Itanagar this weekend as chief guest at the 24th Statehood Day celebration of Arunachal Pradesh. more...

Infrastructure looks beyond funding :-
...............................................................................
Almost all recent discussions on India's economic prospects have identified infrastructure as vital to sustainable economic growth in the country. This is perhaps because of the day-to-day experience that we have on account of poor road connectivity, inadequate capacity of airports, slow average speed of railways and energy shortage.   more...

INFORMATION COMMUNICATION TECHNOLOGY

Business opportunities in ICT :-
...............................................................................
When one young man supplied black soil for my lawn in December, he proposed the supply of human manure. I was eating a mango at the time and I almost threw up. Just the thought of human manure littered all over my lawn nauseated me. more

Malaysia banks on ICT to meet 2020 development goals :-
...............................................................................
"We acknowledge that we face significant challenges," Dr Aliah told delegates. "But we are seeing positive change as Malaysia continues to transform into an information-centred economy by focusing on innovation, value and high skills." more...

Government of Australia Invests $40 Million (AUD) For Teachers' ICT Training :-
...............................................................................
The Digital Strategy for Teachers and School Leaders, part of the Australian Government's $2.2 billion Digital Education Revolution, will help teachers and school leaders achieve ICT proficiency and embed these skills across the curriculum and teaching practices. more

Now Skoool web technologies in all Kerala schools :-
...............................................................................
The Kerala government in collaboration with Intel Saturday launched a regional version of the Skoool Learning and Teaching Technologies educational website -- an online platform to help teachers and students learn key concepts in mathematics and science. more

How ICTs Are Changing the Way We Live: eLearning Africa Launches Online Photo Competition :-
...............................................................................
eLearning Africa, the largest Pan-African conference on ICT for development, education and training, has launched an online photo competition. The organisers are inviting people to submit images that show how ICTs have changed the way Africans live, learn and work. The winning photos will be exhibited at the conference from May 26 -28, 2010 in Lusaka, Zambia. more

INTELLECTUAL PROPERTY RIGHTS (IPRs)

Bhagalpur tussar silk inches closer to patent :-
...............................................................................
"The process for GI registration of Bhagalpur tussar silk is under way," Dhananjay Kumar, who works as cluster development official in Bhagalpur, told IANS on phone.

Kumar said patenting tussar silk would help its weavers and boost the silk business. "The registration of the brand name will benefit weavers, who will gain access to more markets and get better prices," he said. more

FICCI organises seminar on IPR :-
...............................................................................
To create awareness on intellectual property rights (IPR) and its utility for the trade and industry, FICCI, Gujarat state council, in collaboration with the Foundation for MSME Clusters (FMC), New Delhi, held a seminar titled, Intellectual Property for Prosperity, on Saturday. more

Israel and the US have reached an agreement on pharmaceutical intellectual property :-
...............................................................................
Israel and the US have reached an agreement on pharmaceutical intellectual property. The agreement was reached after three years of negotiations. In a statement issued last week that the U.S. plans to move Israel off its Special 301 list of countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to U.S. persons who rely on IPR protection.   more...

Handloom & handicraft clusters should apply for IPR - expert :-
...............................................................................
Not having patents for their handloom and handicraft products, whether handed down traditionally since centuries or developed with years of sweat and research, is proving costly for artisans and small manufacturing units from these two high employment generating sectors. more..

EPO resumes IP-related projects in the ASEAN countries :-
...............................................................................
The EPO is implementing a third project on the protection of intellectual property rights (IPRs) in the ASEAN region as part of a European Commission-funded project known as ECAP. more..

IIPA Report Documents Copyright Theft in 39 Countries :-
...............................................................................
The International Intellectual Property Alliance (IIPA) submitted recommendations to the US Trade Representative (USTR) urging increased efforts to stem copyright theft and protect American jobs in the annual "Special 301" review of Intellectual Property (IP) protection and market access issues in foreign countries. more..

MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

Vendor development programme :-
...............................................................................
MSME Development Institute, Union ministry of micro, small and medium enterprises, in association with Kanara Small Industries Association (KSIA), Mangalore is organizing a one-day state level vendor development programme at the KSIA hall here on February 25. A joint press release from deputy director, branch MSME P V Velayudhan, and KSIA president Jayaraj Pai stated workshop is for benefit of MSMEs in the region. more

Govt launches design scheme for MSME units :-
...............................................................................
The government today announced a Rs 73-crore scheme for micro, small and medium enterprises (MSMEs) to provide them design expertise and make their products more competitive. more...

Govt to implement Task Force's suggestions on MSME :-
...............................................................................
The government today said it will "expeditiously" implement the recommendations of the Task Force on enhancing credit to the Micro, Small and Medium Enterprises (MSMEs).   more...

Panel to examine administrative set up for MSME development :-
...............................................................................
The Orissa government today decided to constitute a high level official committee to work out the administrative re-structuring to give a boost to the development of the micro, small and medium enterprises (MSMEs) in the state.   more...

MSME Ministry seeks Rs 5,500 cr support :-
...............................................................................
The Micro, Small and Medium Enterprises (MSME) Ministry has sought Rs 5,500 crore from the Finance Ministry for promoting the sector, which has been hit-hard by the global financial crisis.   more...

PSUs to buy 20% of total purchases from MSMEs :-
...............................................................................
In a bid to bolster the output of micro, small and medium enterprises (MSMEs), the government will launch a procurement policy which will make it mandatory for the public sector undertakings (PSUs) to buy at least 20% of their total purchases from MSEs. "We are preparing a Cabinet note to encourage the micro and small sector. The policy will be presented for Cabinet approval within one month," said the secretary of micro, small and medium enterprises ministry Dinesh Rai.   more...

FORTHCOMING EVENTS

  • Bangalore International Automotive Expo 2010 | more |
  • HITEX Pharma Show 2010 | more |
  • Aahar International Food Fair | more |
  • National Conference on Emerging Trends in IT and Communication Systems | more |


    		•
     
    :::: OUR INITIATIVES ::::

    Workshop on Energy Conservation

    A workshop was held at Hotel Friends Regency, Ludhiana on February 17, 2010 by Apex Cluster Development Services Pvt. Ltd. under SIDBI's BDS development project to discuss the results of the implementation of energy audits in the cluster. The workshop started with a brief review of the ongoing activities by the Mr. Sanjeev Chaudhay, CDM. Mr Sanjiv Kale, Business Manager, Energy Audits and Utility Consultancy Division, Forbes Marshall, gave presentation on the results of the energy audits conducted in four dyeing units of the cluster. The major highlights of his presentation are as follows :

    • Cost of fuel has increased considerably even if the consumption in units is same.
    • Potential of saving in fuel cost for all units in cluster is in double digits.
    • Average saving potential in the units in which audits have been done is 27 %.
    • Discussion on ways to achieve and sustain savings and return on investment.
    • Steam accounts for 20 % of the operating cost in a dyeing unit.
    • Discussed ways and means of reducing steam cost in dyeing units.
    • Discussion on factors impacting fuel bill.
    • Findings in the cluster on boiler efficiency, feed water temperature and manual blow down.
    • Methods to improve boiler efficiency with existing equipments.
    • Impact on fuel bill by improving steam fuel ratio.
    • Average reduction of 8 % in the total processing cost after implementation of recommendations.
    • Savings across other clusters were discussed.
    • Heat balance across dyeing machinery
    It was followed by an exhaustive interactive session, and queries of the industry stakeholders were answered. The program ended with a vote of thanks by Mr. Sanjeev Chaudhay, CDM.

     
    :::: KNOW YOUR CLUSTER ::::
    MAHESHWAR HANDLOOM CLUSTER
    The city of Maheshwar, the ancient name of which was Mahishmati is known for its rich art and cultural heritage is situated at 90 kms from Indore, Madhya Pradesh on the bank of river Narmada. In 1767, when Queen Ahilyabai Holkar made Maheshwar as her capital city, she encouraged the development of trade and industry in the city. During this period, the craftsmen from Hyderabad, Mandava and Gujarat were also brought in to settle them down at Maheshwar. Before this, the local industry was only producing gray cotton fabric. But after these skilled craftsmen migrated the production of sari, turbans and other dress materials also began. The sari that was 5 yards in length was called 'dandiya', whereas the one of 9 yards was called as sari. They used natural colours for the production of coloured textiles. Gradually, along with the simple textiles there began the production of checks and other fancy designs. The designs on the textiles were mainly inspired from the sculpted depictions in temples and this has given a unique recognition to the handicrafts of Maheshwar.

    At present there are around 1000 working handlooms, around 150 are cooperative units and 850 are outside cooperative units. Annual production including all the textile produced is around 10 Crores. Raw material required in the Maheshwar sari are Raw Silk Mulberry, Twisted Degumed Mulberry Silk, Twisted Undegumed Katan Silk, Mercerised Cotton, Mercerised Cotton and Zari Saris produced are categorized on the basis of texture and design.

    The handloom industry in Maheshwar utilizes the simple pit-loom. On an average the cost of these looms range from Rs 4000 to Rs 5000. Now-a-days many units have started using frame looms instead of the pit-looms and their usage have almost gone upto 10per cent of total number of looms. These frame looms are made of iron angles and can cost upto Rs6000-7000.

    The Maheshwar handlooms use 100per cent dobby and around 24-40 litres of the same is used in the cluster. In order to produce good quality cloth, 50per cent of the looms in the cluster use 5 wheel take-up motions.

    The products of Maheshwar are mainly marketed in the metropolitan cities like Delhi, Mumbai, Pune, Ahmedabad, Chennai, Baroda & Indore etc. Maharshtra makes up for the major portion of sales of saris and in fact the Induri saris are used only by Maharastran families in India. As the city of Indore is located only about 90 kms from Maheshwar so the weavers generally sell their stocks directly in that market and avoid the indirect route through dealers and traders.

    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.

    Easy availability of raw material, availability of Skilled labour, use of natural yarns and huge variety in cloth texture are some of the strengths. While poor dyeing techniques, old patterns and designs, lack of promotional activities and use of old production techniques are some of the weaknesses. Competition from other handloom clusters like Chanderi, Banaras - the , Saris produced in those clusters have a greater popularity.
     
    :::: INFO CORNER ::::
    Public-private partnership (PPP)

    Describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP. PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project.

    Micro, Small and Medium Scale Enterprises (MSMEs), by nature have the limitation to invest in high cost equipments and facilities which will reduce the operational cost and will improve quality and productivity. Due to their size, small firms may not be able to fully utilize the capacity of such machineries and facilities too. Under the circumstance it is possible for the MSMEs to come together to share the initial cost of capital investment and utilize the facility, machinery capacities together, to remain competitive in the field.

    Ministry of Micro, Small and Medium Scale Enterprises, Government of India, have schemes to support such initiatives by investing a portion of the initial investment required in critical areas, to make the MSMEs competitive. Such support is extended for the facilities like training centre, design centre, testing laboratory too.

    		 

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