Economy

TN may have two more clusters

Our Bureau Chennai | Updated on November 13, 2017

About Rs 44 crore has been mobilised to set up nine common facility centres for various clusters across the State.





Tamil Nadu is expected to get two more clusters, a rice mill cluster in Tirunelveli and a printing cluster in Hosur, shortly. The new additions would take the clusters development in the State to 15.

Sources said that the Steering Committee, which takes a decision on cluster development across the country, is expected to meet and finalise the new clusters this week. Cluster development helps small and medium enterprises (SMEs) overcome the weakness such as working in isolation and inadequate linkages with marketing channels. Clusters help in competitive advantage through mutual co-operation and engaging development service providers for cost reduction, capacity building and technology upgradation.

Addressing a seminar on ‘Fostering the growth of MSMEs through technology and financial support' organised by the Federation of Indian Chambers of Commerce and Industry, Mr Harmander Singh, Commissioner of Industries and Commerce, said that it is often seen that SMEs are grappled with the challenge of adaptation to the changing environment and adopting newer technology.

SME clusters are constrained by technological obsolescence, relatively poor product quality, information deficiencies, poor market linkages and inadequate management systems.

Common facility centres

To upgrade and enhance the production of the existing clusters. the Government is funding the common facility centres. The maximum amount a cluster can get to set up a common facility centre is about Rs 15 crore of which 75 per cent would be provided by the Central Government and the remaining would have to be pitched in by the State Government and the cluster members. The common facility centres are expected to help clusters in installing modern machineries and adoption of latest technology.

About Rs 44 crore has been mobilised to set up nine common facility centres for various clusters across the State.

The Central Government has, so far, sanctioned Rs 29 crore while the State Government has pitched in Rs 3.5 crore. The special purpose vehicle created by members of the cluster is about Rs 12 crore. Printing cluster in Sivakasi got approval last month. Ceramic clusters in Virudhunagar and brick clusters in Tirunelvi have got approval recently.

Published on January 26, 2011

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