The Hindu Business Line : Kerala Govt thrust on development of industrial clusters in State

The State Planning Board has already approved the development strategy, which is modelled on the pattern formulated by the United Nations Industrial Development Programme (UNIDO). It has also provided Rs 1.05 crore for the scheme.

According to officials in the Industries Department, though the concept of cluster development was introduced in the rubber sector in 2001, it did not take off, as the financial institutions were not fully conversant with the idea. However, through continuous intervention with the cluster members, the country's first professionally and legally constituted sustainable consortium came into being in Kottayam in the middle of last year.

The body, styled Natural Rubber and Fibre Product Manufacturing Consortium Pvt. Ltd, has initiated certain proactive steps such as development of new products, creation of wide network for export and linkages with research institutions for continuous upgradation of technology.

It has also started a common raw material bank with the support of State Bank of Travancore. Besides, the Centre has agreed to sanction Rs 2.4 crore for setting up a common rubber mixing plant.

The department has identified 44 clusters in all the 14 districts in the State for sustainable development. Of these, diagnostic studies have been completed in respect of 18 clusters by department officials who were trained as "cluster development agents" with assistance from experts at Entrepreneurship Development Institute of India, Ahmedabad, and UNIDO Focal Point.

The 18 clusters include plywood cluster at Kannur, agriculture implements cluster at Shornur, rubber cluster at Malappuram, food processing cluster at Pathanamthitta, cane craft cluster at Thiruvananthapuram, leather cluster at Kottayam, food cluster at Kozhikode, garments cluster at Wayanad and clay tiles and wood furniture clusters at Thrissur.

Further, based on the diagnostic studies, 10 of these clusters have formed consortiums. All the 18 are now expected to attain sustainability by the end of this year with the active support of the cluster development agents.

The department officials said that the State Government has formulated and is implementing a scheme to provide margin money with a ceiling of Rs 5 lakh to the clusters and also extend grant for meeting the expenditure related to the participation of consortium members in national and international events. The Government is also implementing a marketing incentive scheme for establishing common marketing centres for the clusters.

Towards this, financial assistance to the tune of Rs 10 lakh will be provided as grant for fixed investment and Rs 5 lakh as margin money for working capital.

The other initiatives include creation of a `technology upgradation fund' for small natural clusters and introduction of an `industry incubator scheme'. These apart, linkages with research institutions are to be put in place.

Linkages have already been established for rubber and plywood clusters with the Cochin University of Science and Technology for technology upgradation and with the Regional Research Laboratory for the tile industry.

The department has 18 of its officials trained in HACCP certification and a national centre for HACCP certification has been established in Kerala Bureau of Industrial Promotion. The officials will be utilised in food clusters and food incubators.

UNIDO, which is spearheading the cluster development movement in India, has acknowledged the Kerala model of creation of consortiums in the initial stage of the cluster development as a unique approach.

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