Scheme to promote industrial clusters soon

NEW DELHI: As part of the government''s efforts to upgrade industrial clusters in the country, a new scheme worth Rs 1,500 crore is being finalised for the 10th Plan period to make them globally competitive and maximise their exports.
Official sources said the scheme had been in-principle approved by the Planning Commission and was being finalised by the Industry Ministry for implementation during the plan period 2002-07.
The scheme, similar to clusters in advanced economies like Italy, France and Germany, envisages an investment of upto Rs 50 crore in each cluster depending on the requirements of the clusters.
The Industry Ministry has started discussions with the various state Governments, sources said adding a meeting was being scheduled soon with around a dozen states to finalise modalities for implementation of the scheme.
Under the scheme, service companies would be set up in each cluster in which the industrial units in the identified cluster would hold 50 per cent stake. The remaining 50 per cent stake would be held by the Centre, the state Government and the local bodies including banks and financial institutions.
The service companies would be run by professionals and would provide an interface between individual cluster units and technology and other service providers.
Individual units would approach the service companies for their requirements who, in turn, would contact the company for the unit. The cost of the service or technology would be borne by the individual unit, they said.
Sources said, under the scheme, 20-30 clusters would be taken up in the first phase and support would be provided for development of physical infrastructure such as drainage, water, roads and electricity to improve their efficiency.
In addition to this there would also be common facilities such as testing facilities in the clusters to ensure improvement in the quality of products.
Commerce and Industry Minister Murasoli Maran while unveiling the Exim policy on April 1, 2002 had announced certain benefits for the industrial clusters.
Maran had said that industrial cluster towns such as Tirupur for hosiery, Panipat for woollen blankets and Ludhiana for woollen knitwear would be allowed to access the funds under the Market Access Initiative for creating focussed technological services.
Further, such areas would also recieve priority for assistance for identified critical infrastructure gaps from the scheme on central assistance to the states - ASIDE (Assistance to State for Infrastructural Development for Exports).
The units in these notified areas would also be eligible for availing all the Exim policy schemes according to their choice and the provisions of these scheme shall stand relaxed to the extent provided in respect of such units.