CHANDIGARH: Determined to inject growth and competitiveness into the micro, small and medium enterprises (MSMEs), theHaryana Government has decided to set up 31 Common Facility Centres (CFCs) in public-private-partnership (PPP) mode under the Cluster Development Scheme to give the sector a decisive push. Having huge investment potential, MSMEs constitute the backbone of the manufacturing sector.
Stating this here today, an official spokesman said that 31 clusters had already been identified for setting up CFCs. Diagnostic Study Reports (DSRs) have been prepared for 20 clusters and submitted to the Union Government for appraisal. Out of these, five clusters, including Bahadurgarh, Panipat, Sonipat and Karnal, have been approved for setting up CFCs. Four additional CFCs are expected to get the nod shortly.
The clusters have been envisaged to put in place an an institutional support mechanism to inject growth and competitiveness in the MSME sector. These, the spokesman said, would address the common needs of MSMEs in the fields of research and development, technology upgradation, standardization of products, quality testing and markingfacilities, and marketing initiatives with promotion of branding of product etc.
Every CFC will be equipped with a design centre; testing lab; value added facility; and skill development centre. The CFCs are expected to result in increase in net earnings by 50 per cent over the next five years.
The initiative is aimed at building social capital to strengthen the collective action which will provide the spill-over effects of the economies of scale, credit facilitation, technology up gradation, brand building and marketing.
The maximum admissible cost of each CFC has been worked out at Rs15 crore. A special purpose vehicle (SPV) has been constituted to setup, operate and maintain CFCs. The percentage of cost sharing will bethe Union Government (60.71 per cent); SPV (29.35 per cent); and state government 9.94 per cent. Any reduction in the cost will be reduced from the Union Government grant.
One official each from the Ministry of MSME and the state government would be represented in the management committee /governing council and any controlling body of SPV to ensure smooth implementation and functioning of the CFC.
The Investment Promotion Centre , Chandigarh, a Haryana Government organization, will be the implementing agency (IA) for the project. The Union Government grant-in-aid for setting up of CFC will be released to IA. The day-to-day activities, running and maintenance of the CFC will be the responsibility of M/s Bahadurgarh Footwear Development Services Pvt. Ltd., Bahadurgarh, Haryana, the SPV.
The IA will not only comply with the conditions of SIDBI appraisal report but also ensure that the CFC should start functioning within a period of two years from the date of issue of this letter, the spokesman added.