A cluster is generally defined as a geographically bounded concentration of similar, related or complementary businesses with shared infrastructure, markets and services and faced with common opportunities and threats.
National Programme for Rural Industrialisation (NPRI) for development of Clusters
The National Programme for Rural Industrialisation (NPRI) was proposed by the Union Finance Minister in his budget speech for the financial year 1999-2000, with a mission to set up 100 rural clusters every year for the next five years to, give a boost to rural industrialisation. As a part of its commitment to NPRI programme, 65 clusters were developed by NABARD (against the self imposed target of 50) during the five year period 1999-2000 to 2003-04.
List of NABARD adopted clusters as on 30 June 2007
New Cluster Policy
Considering the excellent potential in the cluster approach for rural industrialisation and the recognition of NABARD's role in rural clusters by several agencies including the GoI, NABARD had decided in 2005-06, to go in for development of selected clusters on its own by partnering with other government agencies.
Cluster Philosophy
Focussed assistance.
Demand based assistance.
Flexible instruments of assistance to meet specific needs of cluster.
Close monitoring to spur continuous development and innovation.
Objective
Strengthening of existing clusters, and development of new clusters in exceptional cases, towards sustainable competitive advantage through technology upgradation & transfer, raw material access, skill development, managerial inputs, credit support and marketing assistance.
Cluster Development - Strategy
Identification of the Cluster.
Identification of Cluster Development Agency (CDA) and Cluster Development Facilitator (CDF)
Conducting Base-line Survey & Diagnostic Study
Drawing up Action Plan
Implementation of the Action Plan
Review & Monitoring (Concurrent)
Documentation (Concurrent)
Evaluation and documentation of changes as a result of interventions after the project period.
Preparation of Cluster Status
Cluster status will give details such as, the number of people / families employed, nature of activity, age of the cluster, source of raw material, skill levels, marketing strategy, credit linkages and other details of the activity/ product line etc.
Action Plan
Cluster development Action Plan broadly covers expected credit year-wise, for three years (in case of clusters developed in Partnership with other agencies) and 5 years (Intensive development model) and promotional intervention suggested during each year.
The Action Plan is to be prepared in a Logframe format i.e. containing the following definitions :
the overall Goal to which the project contributes;
the Purpose to be achieved by the project;
the Outputs for achieving this Purpose;
the Activities for achieving each Output.
Cluster Development Committee
The suggested composition of the Cluster Development Committee is the District Collector or Head of the DRDA as Chairman and DDM, NABARD as Member Secretary and the following officials as members :
Lead Bank Officer General Manager, District Industries Centre, NGO/ VA/ Developmental Agency, Artisan / Entrepreneur representative from the Cluster, Representatives of local banks, other local Govt. agencies such as KVIC/ KVIB/ SISI and any other suitable local resource person. Representative of SIDBI, if available.
The Committee will have to review the cluster status and action plan suggesting stage-wise action for the project period, so that total strategy for skill development, resource mobilisation, raw material supply, marketing strategy, organisation and management, etc., could be covered. The Committee may meet atleast once in a quarter to monitor the progress.
Role of different partners
NABARD
DDM will oversee the implementation of the programme in the identified cluster. Besides providing refinance support to the eligible units under various refinance schemes of NABARD, need based promotional support may also be considered.
VAs/ NGOs(CDA/CDF)
The identified NGO will act as the Cluster Development Agency (CDA) for implementing the project. The CDA will identify a key personnel to implement the programme. He will be designated as Cluster Development Facilitator (CDF). His close rapport with the cluster artisans is very important particularly in identification, planning, monitoring and assessing the development of clusters from their (artisans') point of view.
The involvement of these agencies is to be ensured right from the beginning and efforts may also be made for deriving support from higher level officers.
Banks
Integrating Cluster Action Plan into Service Area Plans.
Ensuring focussed attention to meet the credit needs of the entrepreneurs.
Ensuring qualitative lending with close supervision and support services.
Sponsoring potential entrepreneurs to participate in the Rural Entrepreneurship Development Programmes (REDPs).
Deputing field level functionaries to various training programmes, meets, workshops.
Associating with Cluster Development Committee,
Monitoring the progress of Cluster Action Plan and
Maintaining proper data base.
SFURTI
During 2005-06 Govt. of India, Ministry of Agro and Rural Industries had introduced a new scheme, "Scheme of Fund for Regeneration of Traditional Industries"(SFURTI) with an initial allocation of Rs.100 crore with the objectives of making traditional industries more competitive and more market-driven, strengthening the local governance systems of industry clusters with the active participation of the stakeholders and build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnership, so as to gradually replicate similar models of cluster-based regenerated traditional industries.
The Scheme will be implemented by KVIC over a period of five years from 2005-06. NABARD has decided to associate with KVIC in this endeavour.
Statewise Details of Clusters Being Supported by NABARD – June 2007
Sn.No.
State/ Activity
District
Type of Assistance
Andhra pradesh
1
Idol making
Chittoor
NPRI (Phase 1)
2
Brass & Bell metal
Srikakulam
NPRI (Phase 2)
3
Imitation jewellery
Krishna
NPRI (Phase 3)
4
Idol/ memento making
Mahbubnagar
NPRI (Phase 4)
5
Leather cluster
Medak
NPRI (Phase 4)
6
Handloom silk cluster
Pochampally
NPRI (Phase 5)
7
Jute cluster
Srikakulam
NB-CDP
Total 07
Assam
1
Brass metal craft
Jorhat
NPRI (Phase 3)
2
Cane & bamboo products
Nagaon
NPRI (Phase 5)
3
Pottery
Kamrup
NB-CDP
4
Bamboo cluster
Sibsagar
NB-CDP
5
Handloom (Ericulture)
Kamrup
NB-CDP
6
Muga silk
Sibsagar
NB-CDP
7
Eri silk cluster
Chirang
NB-CDP
8
Sericulture
Karbi Anglong
NB-CDP
9
Sericulture
Dibrugarh
NB-CDP
10
Sericulture
Goalpara
NB-CDP
11
Sericulture
Udalguri
NB-CDP
12
Silk Handloom
Cachar
NB-CDP
13
Sericulture/weaving
Darang
NB-CDP
14
Japi (Bamboo Craft)
Nalbari
NB-CDP
15
Sericulture & Weaving
Kokrajhar
NB-CDP
Total 15
Bihar
1
Leather cluster
Nalanda
NPRI (Phase 1)
2
Mithila/ Madhubani painting
Madhubani
NPRI (Phase 2)
Total 02
Chattisgarh
1
Bamboo cluster
Raigarh
NB-CDP
2
Tassar Handloom
Raigarh
NB-CDP
Total 02
Gujarat
1
Leather craft
Kutch
NPRI (Phase 1)
2
Bamboo and paper based craft, hand embroidery
Dahod
NPRI (Phase 4)
3
Wooden toys
Sabarkantha
NPRI (Phase 5)
4
Bandhini
Jamnagar
NPRI (Phase 5)
5
Oxidised metal works
Rajkot
NPRI (Phase 5)
6
Leather cluster
Dahod
NB-CDP
7
Blacksmithy
Surat
NB-CDP
Total 07
Haryana
1
Zari juties
Rewari
NPRI (Phase 1)
2
Weavers cluster
Ambala
NPRI (Phase 5)
3
Bead (manka) making
Hissar
NB-CDP
Total 03
Himachal Pradesh
1
Wood and metal craft
Kullu
NPRI (Phase 1)
2
Bamboo products
Kangra
NPRI (Phase 4)
3
Leather shoe making
Una
NPRI (Phase 4)
Total 03
Jharkhand
1
Blacksmithy
Bokaro
NPRI (Phase 3)
2
Punja Woollen Artistic Durrie
Lohardaga
NB - CDP
3
Silversmith
Hazaribagh
NB - CDP
4
Tussar silk
West Singhbhum
NB- CDP
Total 04
Karnataka
1
Leather works
Belgaum
NPRI (Phase 1)
2
Banjara embroidery
Bellary
NPRI (Phase 2)
3
Bidri craft
Bidar
NPRI (Phase 3)
4
Sisal fibre rope making
Chamrajnagar
NPRI (Phase 4)
5
Silk weaving
Chitradurga
NPRI (Phase 4)
6
Kasuthi cluster
Dharwad
NPRI (Phase 4)
7
Arecanut cluster
Chitradurga
NB- CDP
8
Handloom kambli weaving
Bagalkot
NB- CDP
9
Sericulture
Chamrajnagar
NB-CDP
10
Natural Fibre
Chitradurga
NB-CDP
Total 10
Kerala
1
Bell metal
Kottayam
NPRI (Phase 1)
2
Pottery
Mallapuram
NPRI (Phase 2)
3
Straw arts
Kollam
NPRI (Phase 4)
4
Kora grass products
Alapuzha
NPRI (Phase 5)
5
Screwpine cluster
Thrissur
NB- CDP
Total 05
Madhya Pradesh
1
Plastic rope making
Ratlam
NPRI (Phase 1)
2
Block/ batik printing
Ujjain
NPRI (Phase 3)
3
Blacksmithy cluster
Jabalpur
NPRI (Phase 5)
4
Bamboo cluster
Indore
NB- CDP
Total 04
Maharashtra
1
Ganesh idol making
Raigad
NPRI (Phase 1)
2
Cashew processing
Sindhudurg
NPRI (Phase 2)
3
Paithani sarees
Nasik
NPRI (Phase 3)
4
Tassar silk
Bhandara
NPRI (Phase 4)
5
Ghongadi (Carpet) weaving
Solapur
NB- CDP
Total 05
Manipur
1
Handloom
Imphal West
NB- CDP
2
Indigenous Pottery
Ukhrul
NB- CDP
Total 02
Meghalaya
1
Handloom weaving
West Garo Hills
NB- CDP
Total 01
Nagaland
1
Woodcraft
Dimapur
NPRI (Phase 4)
Total 01
Orissa
1
Brass & bell metal
Sambhalpur
NPRI (Phase 1)
2
Dokra casting
Angul
NPRI (Phase 3)
3
Horncraft
Gajapati
NPRI (Phase 3)
4
Terracotta
Keonjhar
NPRI (Phase 4)
5
Brass & bell metal craft
Nayagarh
NPRI (Phase 4)
6
Woodcraft
Kalahandi
NPRI (Phase 5)
7
Handloom
Cuttack
NPRI (Phase 5)
8
Terracotta
Nabrangpur
NB-CDP
Total 08
Punjab
1
Shoe making (zari juti)
Muktsar
NPRI (Phase 1)
2
Handloom weaving
Sangrur
NPRI (Phase 4)
3
Phulkari craft
Patiala
NB- CDP
Total 03
Rajasthan
1
Juti making
Alwar
NPRI (Phase 1)
2
Handblock printing
Chitorgarh
NPRI (Phase 3)
3
Weavers cluster
Jhalawar
NPRI (Phase 4)
4
Mirror work hand embroidery
Bikaner
NPRI (Phase 4)
5
Mirror work & embroidery cluster
Barmer
NPRI (Phase 5)
6
Handloom
Jodhpur
NB-CDP
Total 06
Sikkim
1
Broom Making & Marketing
E,W & S Sikkim
NB-CDP
Total 01
Tamil Nadu
1
Thanjavur artplate making
Thanjavur
NPRI (Phase 1)
2
Woodcraft
Villupuram
NPRI (Phase 2)
3
Coconut shell craft
Kanyakumari
NPRI (Phase 3)
4
Ceramic toys
Cuddalore
NPRI (Phase 4)
5
Papier mache toy making
Kancheepuram
NPRI (Phase 4)
6
Hand printed and tie & dye textiles
Madurai
NPRI (Phase 5)
7
Banana based products
Tiruchirapalli
NPRI (Phase 5)
8
Moonstone cluster
Erode
NB- CDP
9
Terracotta
Pondicherry
NB- CDP
10
Banana sisal fibre
Tirunelveli
NB- CDP
Total 10
Uttaranchal
1
Handloom cluster
Haridwar
NB-CDP
2
Off season vegetables
Tehri Garhwal
NB-CDP
Total 02
Uttar Pradesh
1
Horn & bone products
Moradabad
NPRI (Phase 1)
2
Woodcraft
Bijnore
NPRI (Phase 3)
3
Pottery
Mirzapur
NPRI (Phase 4)
4
Pottery
Bulandshahr
NPRI (Phase 5)
5
Aonla
Pratapgarh
NB-CDP
6
Zari Zardosi
Bareilly
NB-CDP
7
Leather work cluster
Sultanpur
NB-CDP
8
Handloon (Banarasi saree)
Mirzapur
NB-CDP
Total 08
West Bengal
1
Handloom weaving
Nadia
NPRI (Phase 1)
2
Silk weaving
Murshidabad
NB-CDP
3
Handloom cluster
Malda
NB-CDP
4
Handloom cluster
Burdwan
NB-CDP
Total 04
National Bank for Agriculture and Rural Development