SME Times News Bureau | 24 Feb, 2012
Cluster approach is an effective way for all round development of the country's MSME sector, viewed the Secretary, Ministry of Micro, Small and Medium Enterprises (MSMEs), R.K. Mathur on Thursday in New Delhi.

“The cluster approach has proved effective and successful tool for upgradation of industry all over the country in a cost effective manner. The cluster development initiatives in various clusters have reportedly delivered remarkable results," Mathur said speaking at a MSME Summit with the theme Innovation & Clusters was organized along with FICCI.  

He added the cluster approach thus aims at a holistic development covering areas like infrastructure, common facility, testing, technology & skill upgradation, marketing, and export promotion.

Under the guidelines of the MSE Cluster Development Programme (MSE-CDP), the official stated, a total of 477 clusters spread over 28 States and 7 UTs have so far been taken up for diagnostic study, soft interventions and setting up of CFCs under the programme. The efforts under the scheme are focused on covering more and more clusters from all the States/UTs.

He said that the government has been taking a number of schemes for MSMEs as they are facing the challenges of globalization, higher cost of funds, knowledge management technology upgradation, infrastructure constraints.  

Mathur added that under the Public Procurement Policy, every Central Ministry / Department / PSU shall set an annual goal for procurement from MSE sector at the beginning of every financial year.

"The objective is to achieve an overall procurement goal of minimum 20% of total annual purchases of products or services produced or rendered by MSE from the latter in a period of three years. After 3 years, overall procurement goal of minimum 20% will be mandatory," he said.

Further, the MSME secretary added, out of 20% target of annual procurement from MSEs, a sub-target of 20% (i.e. 4% out of 20%) will be earmarked for procurement from MSEs owned by SC / ST entrepreneurs.