Chandigarh: Federation of Associations of Small Industries of India (FASII) has blamed Punjab government of not being serious in developing industrial clusters under Cluster Development Programme of MSME ministry.

It said that "unnecessary delay" on state government’s part hit the cluster development in the state. In a meeting with Vivek Rae, Secretary, Ministry of Micro, Small and Medium Entreprises (MSME), the association urged the Centre to "eliminate" the participation of any sort by state government in the cluster development programme (CDP).
"Because of unnecessary and long delay by Punjab government in sending relevant documents and proposals forwarded by the industry (which wants to develop cluster) to the Centre for its approval under CDP, many a times industry could not get funds from Centre and fail to set up clusters," FASII, President, Badish Jindal said today.

"It clearly shows that the state government is not serious enough to develop clusters in the state," he added. Citing an example, he said a proposal to set up a cluster for Offset Printing industry in Ludhiana was proposed, for which an amount of Rs 1.5 lakh for preparing diagnostic study report was provided by the Centre.
"The special purpose vehicle (SPV) set up for this purpose  submitted the utilisation certificate for Rs 1.5 lakh to Punjab government to forward it to MSME ministry for further assistance.

But the certificate was sent after a very long delay and as a result of which, Centre stopped further assistance," he alleged. Jindal said as many as 12 clusters were proposed to be developed under CDP of MSME ministry in Punjab. "But in last four years, work on 8 projects reached the first stage of CDP, which is diagnostic study level and rest of clusters reached at soft intervention level," Jindal said.

Under CDP, which aims to enhance productivity and competitiveness of micro and small enterprises, Rs 2.50 lakh is given for diagnostic study, Rs 25 lakh (75 percent Centre’s contribution) for soft interventions and Rs 15 crore (70 percent Centre’s contribution) for hard interventions including common facility centres.

Proposals for consideration under CDP are generally sent through state governments, Jindal said.


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