National Resource Centre for Cluster Development (NRCD)

Cluster development approach has emerged as one of the most innovative and effective strategy for enhancing competitiveness and promoting innovation in the Micro, Small and Medium Enterprises (MSMEs) sector in holistic way. The basic problem that small and medium enterprises face is working in isolation. Absence of latest technology and improved skills, inadequate linkages with marketing channels, support institutions and service providers and lack of information on technology and market are major challenges of MSME sector which are hindering development process. MSMEs can significantly increase their competitive advantages through mutual co-operation and engaging business development service providers for cost reduction, capacity building, technology up gradation and infrastructure development through cluster approach.

To cater to the needs of the small enterprises in the country and to enable the MSME sector to face the challenges of globalisation, the office of Development Commissioner for MSME has launched Micro and Small Enterprises Cluster Development programme. It was felt necessary to establish a national level resource centre to promote cluster development in the country to dynamise the operations of MSME sector. The National Resource Centre for Cluster Development (NRCD) came into existence in January 2004, at ni-msme with the active support of the Development Commissioner (MSME), Ministry of MSME, Govt. of India.

NRCD was constituted with the principal charter of helping the MSMEs by implementing the cluster development approach, and providing guidance and assistance to the clusters by way of training, handholding, implementing, monitoring, mapping, research and information dissemination.

Vision

To be the global centre of excellence for SME cluster development
Objectives

Key services

Some of the projects handled by ni-msme in the past include the following:

Preparation of Diagnostic Study Reports:
Conducting diagnostic study and preparation of Diagnostic Study Report of clusters is a core competence of NRCD. These studies aim at finding the problems and prospects, analysis of business operations, key strategic direction/s the cluster needs to follow and suggesting a development oriented action plan. These DSRs were prepared for agencies like DC (MSME), DC (Handlooms), DC (Handicrafts), KVIC and Coir Board, Government of Uttar Pradesh. Recently survey of three herbal health and cosmetic clusters located at Ratnagiri, Padubidri and Thrissur was conducted under ADB project of KVIC. Presently the Institute conducting survey of three Textile and Apparel Manufacturing clusters namely Solapur, Bhiwandi and Malegoan in the state of Maharashtra.

DSRs prepared for O/o Development Commissioner (MSME) under MSECDP scheme

Support services provided in preparation, validation and implementation of DSRs for Coir Clusters under SFURTI

Support services provided in preparation, validation and implementation of DSRs for KVIC Clusters under SFURTI

DSRs prepared for O/o Development Commissioner (Handlooms) under IHCDP Scheme

Apart from the above prepared business plans for 10 Handicraft Clusters
DSRs prepared under SFURTI /AHVY schemes

Handholding & Monitoring Services extended in 20 DC (MSME) clusters:
Provided handholding & monitoring services in 20 DC (MSME) clusters during September 2003 – March 2007. The officers of MSME-DIs were trained as Cluster Development Executives (CDEs) in 3-Phases, supported them in conducting Diagnostic Studies, extended handholding & monitoring support. The interventions in the clusters have given very good results in areas like strengthening of Associations, Capacity building of cluster actors, Technology Up gradation, Quality certifications, BDS linkages, Network formation, Market development & Exports, setting up of CFCs, use of ICT and GI registration.

As Implementing Agency:
Recently the Institute has successfully completed interventions in Barabanki and Mubarakpur Handloom clusters as an Implementing Agency selected by DC (Handlooms). Earlier the Institute implemented cluster development projects in Agra Footwear Cluster and Narsapur Chrochet Lace cluster sponsored by DC (MSME).

As Technical Agency:
The Institute has provided services as a Technical Agency under SFRUTI Scheme in 12 Coir clusters and 12 KVIC Clusters spread across Andhra Pradesh, Karnataka, Tamil nadu, Pondichery, Maharashtra and A&N Islands. Presently, supporting implementing agencies and cluster SPVs in six clusters

Training of officials/Bankers
The Institute regularly conducts a number of training programs for various organizations like DC (MSME), DC (Handlooms), KVIC, Coir Board, Industry Departments of State Governments, NABARD, Canara Banks, Oriental Bank of Commerce and SBH fulfilling the need for popularizing the concept and methodology of cluster development and raising a trained cadre of officials including Cluster Development Executives (CDEs).

Orientation programs for Directors of MSME – DIs:
The Institute organized orientation programmes on cluster development for the benefit of Directors of MSME-DIs.

Awareness Program on Cluster Development for Industry Officials of 10 selected State Governments:
The Institute also organized awareness programmes on cluster development for the benefit of the officials of State Governments for the benefit of Karnataka, Goa, Uttar Pradesh, Uttarakhand, Jharkhand, Bihar, Chhattisgarh, Madhya Pradesh, Rajasthan and Assam.

National Workshop:
A “National Workshop on MSME Cluster Development” was organized at New Delhi during 28-29 January 08 sponsored by Ministry of MSME, GOI, GTZ, SIDBI, SBI Factors Ltd. The workshop was a was well received and participated by international and national agencies, like– DFID, GTZ, ILO, UNIDO, World Bank, SDC and Secretaries and senior officials of Government of India and State Governments, Cluster Development Agencies and Cluster Stake holders. Over 120 Delegates have participated in the Workshop and 28 Key note Speakers under eight themes presented their views. The proceedings of the Workshop were circulated among the participating agencies.

Publications:
The Institute has publised two publication on cluster development viz. “SME clusters Development- A Training Manual” and “Interventionary Instruments for Cluster Development – A Handbook” which are being used for training of CDE/As and as a reference material in addressing the day to day issues facing the cluster development professionals respectively.

CRMA:
Govt. of India has implemented Integrated Handloom Development Scheme with an objective of developing the handloom weavers both in the private and cooperative sector, through Cluster Development Programme. Under this project, the Institute has served as Cluster Resource cum Monitoring Agency (CRMA) for monitoring and evaluation in a systematic and scientific manner and to suggest and guide the implementing agencies to achieve the desired objectives of the cluster. Under this assignment the Institute supported 37 clusters in Andhra Pradesh and 24 clusters in Kerala.

Development of Clusters in Jharkahnd:
The Department of Industries, Government of Jharkhand entrusted ni-msme for mapping of clusters across the State and also scope for development of induced clusters. The Institute has conducted regional workshops at Hazaribagh, Girighi, Dhanbad, Bokaro and Ranchi Districts of the State inviting the officials of Industries Department, Agriculture Department, Forest Department, representatives of Industry Associations and NGOs, Entrepreneurs and Artisans. The Clusters located across the State have been identified to explore possibility for taking up cluster interventions. With in-depth interactions during the workshops and also small group meetings, the cluster data was collected, analyzed and ranked for identification of potential cluster for development.

International Training Programme on SME Promotion through Cluster Approach:
ni-msme had spread its wings overseas as a trainer of civilian officers from abroad for getting equipped with the needed information, skill acquisition and wherewithal for possible adoption of cluster approach in the SME sector in their respective countries.

Capacity Building of Business Membership Organizations:
ni-msme with its vast experience in cluster development and also enterprise promotion and development, has supported six industry associations under the project titled ‘Capacity Development of Business Membership Organisations (BMO) in India’ which is part of the MSME Umbrella Programme being implemented by GIZ, Office of DC MSME and SIDBI Under Indo- German bilateral cooperation. The Industry Associations supported include Nalgonda Drug Manufacturers Association (NDMA), Gulbarga Industrial Estate Manufacturers Association (GIEMA), Consortium of Service Providers for Up Gradation of Enterprises (CAPSULE), Uppal Industries Association (UIA), Cherlapally Industries Association (CIA) and Machilipatnam Imitation Jewelry Park Member’s Welfare Association (MIJPMWA). The Associations were supported in building capacities, souring funds through public support schemes, income generation through various training and consulting activities and also approaching /submitting their issues to Government for policy implication.

As Nodal Agency
The Institute is serving in the capacity of Nodal Agency for implementation of SFURTI scheme of Ministry of MSME for development of 18 traditional industry clusters in the states of Andhra Pradesh, Jharkhand, Kerala, Maharashtra, Telangana, and Punjab. Further, the Institute is also working closely with NBCFDC and NSFDC for development of handloom and handicraft clusters.

ni-msme as Nodal Agency

ni-msme as Technical Agency