Furniture cluster in Salem to get a common facility centre
Updated: Oct 12, 2015 01:03:47pm
Salem, Oct 12 (KNN) To service micro and small units involved in furniture manufacture at a cluster here, a common facility centre (CFC) has been proposed at a cost of Rs 15 crore, according to a media report.
This was decided at a meeting of furniture manufacturers held here on October-9. In this regard, a Cluster Development Consultative Committee was constituted to promote the CFC and Branch Manager of SIDCO, S Yasodhanan, was nominated as the chairman, the Hindu report said.
A diagnostic study report will be prepared by the special purpose vehicle or the private limited company which will be formed.
The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.
Clustering of units also enables providers of various services to them, including banks and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises.
Normally, twenty units that are involved in manufacturing similar products at a particular location will be categorised as cluster units.
Beneficiaries have to invest for the land and building that ranges from 10 per cent to 20 per cent of the project cost, while the government would sanction 80 per cent of the project value as grant-in-aid to purchase the plant and machinery while two per cent of the project cost is allowed to meet preliminary and pre-operative expenses, the Hindu report added.
To support such clusters, the state government offers various incentives and subsidies, while the central government has in place various schemes. (KNN Bureau)
This was decided at a meeting of furniture manufacturers held here on October-9. In this regard, a Cluster Development Consultative Committee was constituted to promote the CFC and Branch Manager of SIDCO, S Yasodhanan, was nominated as the chairman, the Hindu report said.
A diagnostic study report will be prepared by the special purpose vehicle or the private limited company which will be formed.
The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.
Clustering of units also enables providers of various services to them, including banks and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises.
Normally, twenty units that are involved in manufacturing similar products at a particular location will be categorised as cluster units.
Beneficiaries have to invest for the land and building that ranges from 10 per cent to 20 per cent of the project cost, while the government would sanction 80 per cent of the project value as grant-in-aid to purchase the plant and machinery while two per cent of the project cost is allowed to meet preliminary and pre-operative expenses, the Hindu report added.
To support such clusters, the state government offers various incentives and subsidies, while the central government has in place various schemes. (KNN Bureau)
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