Govt plans core sector aid for 110 SME clusters

NEW DELHI: The government is planning to provide infrastructure support to more than 110 industrial clusters in the medium, small and village industry segments. While the ministry of small scale industry and agro-rural industry (SSI&ARI) plans to set up about 100 clusters with an investment of about Rs 100-120 crore in the coming five years, the department of industrial policy and promotion (DIPP) has already sought Rs 350 crore for providing infrastructure support to more than 10 clusters within this fiscal.

The ministry of commerce & industry has already received more than 100 proposals from state governments under the industrial infrastructure upgradation scheme (IIUS). “About 40 proposals have been shortlisted for consideration by the government out of a more than 100 received,” a source said. Most of those shortlisted for the scheme are in the states of Gujarat and Andhra Pradesh.

New clusters are being planned for the coir industry mostly in the coastal states and a majority are being considered from the village industry segment. Village industry products are being promoted in a big way as these products have found a huge market in the urban population. Organic foods, herbal products and cosmetics and traditional diet foods have especially been high sellers in the Khadi outlets set up by the Khadi and Village Industries Commission (KVIC) in the big cities.