The Associated Chamber of Commerce (Assocham) has suggested setting up of 17 inter-dependent clusters for small and medium enterprises (SMEs) on public–private partnership (PPP) model to ensure inclusive growth in West Bengal.

The association has pegged the cost of the clusters at Rs 400 crore.

“Setting up these new clusters will increase the State's revenue by 10 per cent while it is expected to create direct employment for around five lakh people,” Mr D.S. Rawat, national secretary general of Assocham said while releasing a study paper, ‘Cluster Development for Inclusive Growth in West Bengal', here on Wednesday.

According to the report, many of the SMEs are using obsolete technology, thereby losing their competitiveness to large-scale enterprises. To avoid this, setting up of an inter–dependent model, where one cluster can buy goods from another, has been suggested. The model has been named e-Cluster model.

A database consisting of necessary details including the products offered by other clusters should also be set up.

The report also suggests that future clusters come up on PPP model where the Government acts as a facilitator in providing land while private players act as financers for the SMEs.

Currently, only 43 clusters located in the state are recognised by the Centre while there are 6,500 such clusters across the country.

The Assocham report suggests that the State government set up a statutory body like the Cluster Development Authority for utilisation of funds and overall development of SMEs.

The new clusters to be set up include ones for fishing hooks, textile and handicrafts, locks, textile and auto component, artificial and real jewellery, readymade garments, bell/metal utensils, dal mills, handtools, surgical instruments, wood products and mechanical engineering equipments.

Kolkata office

Assocham will set up its first office in Kolkata by March this year. Initially, the association will operate from a rented premises and later move onto its own one in Salt Lake. Land for setting up its own premises has already been obtained.

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