Orissa plans to start cluster mapping soon

The Orissa government plans to start a ‘cluster mapping’ exercise soon to optimize the growth of the existing clusters and identify the possibility of setting up new clusters in the state,

The mapping process would include possible measures for the development of clusters in areas like handicrafts, small and medium enterprises (SMEs) and cottage industries. The process of mapping has been set in motion and it is expected to be over by March 2010, official sources said.

“We are in the process of preparing a cluster map for the overall growth of the existing and potential clusters, which would include handicrafts, SME and cottage industry sectors”, Hemant Sharma, director industries told Business Standard.

The method adopted by the United Nations Industrial Development Organisation (UNIDO) for cluster mapping will be followed in this exercise and some people in the state industry department have been trained for the purpose.

As part of the UNIDO project, the directorate of industries, directorate of handicrafts and cottage industries and directorate of textile and handlooms have adopted 2 clusters each as model clusters. This is proposed to be replicated at other locations. It may be noted, the state government has decided to develop 86 clusters.

Sources said, a cluster cell has been constituted in the directorate of industries for implementation of the cluster development programme and a pool of 43 officers has been trained in the cluster methodology. Meanwhile, the Union government has approved 14 clusters out of 20 clusters notified by the state government for central assistance. The approved clusters include engineering cluster at Rourkela and Jharsuguda, rice milling cluster at Baragarh and Nuapada, pharmaceutical cluster at Cuttack-Bhubaneswar, cashew cluster at Ganjam, Kalinganagar cluster in Jajpur district. plastic cluster at Balasore, and graphite polishing cluster at Bolangir. Two proposals namely plastic cluster at Balasore and engineering cluster at Mancheswar have been sent to the Union government for assistance under Industrial Infrastructure Upgradation Scheme (IIUS). Each of these units can avail Rs 60 crore assistance under the scheme.

Out of the 14 approved clusters, special purpose vehicle (SPV) has been registered in case of four clusters. The state government is also in the process of sending the proposal for a sponge iron cluster at Bonai near Rourkela for assistance under IIUS.

It may be noted, the development of enterprise through cluster approach was initiated in the Industrial Policy Resolution (IPR), 2001. It was taken forward in the IPR, 2007 and Micro, Small and Medium Enterprise (MSME) Development policy 2009. The directorate of industries of the Orissa government is taking steps to leverage funds from Micro and Small Enterprise Development Programme. (MSE-CDP) of the government of India (GoI).