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CLUSTER DEVELOPMENT PROGRAMME
The Govt. of India, Ministry of MSME initiated the Cluster Development Programme in the year 2003.04. While undertaking the cluster development activities a country wide survey of Clusters was undertaken by the DC(MSME),New Delhi and 358 SSI clusters were identified. In the Ist phase of Small Industries Cluster Development Programme in the year 2003-04, the development of 20 clusters in different States were initiated by the Development Commissioner, Micro, Small and Medium Enterprises, New Delhi.

Micro, Small and Medium Enterprises Development Institute, Karnal was assigned the job of Cluster Development for Rice Milling industry of district Karnal. As per the plan the development was undertaken in the areas of Technology Up gradation, Market Development and the capacity building. The programme started with the preparation of Diagnostic Study Report which was duly validated by the industry, associations and the cluster actors. The programme was meant for a period of three years i.e. w.e.f. the year 2004-05 to 2006-07.

The major problems identified in the clusters were related to technology up gradation, lack of management skills, training and market development requirements, lack of finance and Business Development Services etc. In view of above, the requirement of industry and the cluster’s vision various technology seminars, workshops, BDS Services, Energy Audits, Quality Awareness Programmes, Market Development / E-Business Programmes, participation in fairs, Exposure visit of Rice Millers to Internationally advanced rice milling clusters- China and Thailand and capacity building programmes and meets etc. were undertaken. Therefore, tangible improvements were undertaken in the cluster in the above areas. The feed back on the status of improvement in the different years of working in the project was reported as below:

STATUS OF IMPROVEMENT IN VARIOUS CLUSTER ACTIVITIES
S.
No.
Activities / particulars
Year-wise Status
Pre Cluster Development Programmes statusYear 2003-04
Year ending 2004-05
Year ending 2005-06
Year ending 2006-07
1.
No. of rice mills
221
221
221
221
2.
No. of Exporters
19
19
20
21
3.
Investment in machinery
40 Crore
41 Crore
44 Crore
45 Crore
4.
Employment
10,000 Nos.
10200 Nos.
10600 Nos.
11000 Nos.
5.
Rice Broken Reduction / Level *- Raw rice- Par boiled rice
28 %
8%
28%
8%
28%
8%
6.
Estimated savings due to reduction in rice broken *
Upto 32 %
Upto 13%
1.01 crore
3.0 Cr Appx
6 Cr Cumulative
7.
Energy Conservation- Estimated energy savings- Investment in machinery
40 lakhs approximately50.7 lakhs
1.5 crore apprx.cumulative75 lakhs apprx.Cumulative
8.
Skill Development
170 persons
396 persons
800 persons cumulative
9.
Establishment of Q.C/ Test Labs.
4 Nos.
4 Nos.Cumulative
10.
Social Capital Achievement/ Relations developed with other rice mills / CAs
675 cumulative
11.
Production
1200 Crore Apprx.
1225 CroreApprx.
1270 CroreApprx.
1300 CroreApprx.
12.
Exports (Direct & Indirect)* Information based on feed back & survey report
700 CroreApprox.
710 Crore Approx.
725 CroreApprx.
750 CroreApprx.
 
Some of the major achievements made in the cluster are as below:

i) Standardisation and improvement in rice milling processes including Drying, Milling, Parboiling, Steaming, Polishing, Storage and Preservation etc.
ii) Reduction in Rice Broken level during Milling operations upto 5% in raw rice and 5% in Parboiled rice.
iii) Savings due to rice broken reduction –Rs. 1.5 Crore cumulative.
iv) Investment in machinery made by Rice Millers for Rice Milling processes improvement and Technology Upgradation- Rs. 5 Crore cumulative.
v) Carried out Energy Audits in 13 Rice Mills.
vi) Investment made for Energy Conservation purpose-Rs. 75 lakhs cumulative.
vii) Amount of Energy saved due to implementation of Energy Conservation recommendations-Rs.1.5 crore cumulative.
viii) No. of Quality Control Labs established by the units- 4 Nos.
ix) No. of persons improved Skills in Technology Upgradation and other processes- 800 Nos.

 
Impact of Main Interventions
2005-06
2007-08
Source of info.
Working Regd. Units
60 No.
64 Nos(More units coming up)
DIC
TURNOVER (Estimated)
Rs.198 Crore Approx.
Rs.300 Crore plus Approx.
Field Info. / Asson.)
EXPORT(Estimated)
Rs. 40 Crore approx.
Rs. 51 Crore plus approx.
Field Info. / Asson.)
S. No.
Intervention
Impact / EffectBefore After
1.
Programmes on Export Procedures & awareness on use of Internet for international business promotion
Directly Exporting Units= 4 Nos.Indirectly Exporting Units= 4 Nos
Directly Exporting Units= 7 Nos.Indirectly Exporting Units= 7 Nos
2.
Awareness Programme on Quality Managements & Standards
No. of ISO 9000 certified units= 3
No. of ISO 9000 certified units= 14
3.
Awareness on Energy Conservation & Energy Audit of Energy Intensive Units
Rs. 49.55 Lac worth of total annual saving in energy consumption projected with an investment of around Rs. 7 Lac in 5 major units.Suggestions under implementation in newly coming up units in Agricultural Implements Park
4.
Trainings / Seminars/ Workshops Manufacturing Technology & Processes on / Exposure visits
Improvement in workmanship, Housekeeping, Material Storage /Handling