Govt Grant in Aid Projects

Proposal to assist in preparation of Basic Draft/DSR / DFR/DPR and Project Management for Common Facility Centre(s)


Background: The Ministries of Government of India (GoI) and State Govt. of Tamilnadu has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro, Small, Medium and Larger Enterprises  and their collectives in the country. A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same/similar products/services. The essential characteristics of enterprises in a cluster are

(a) Similarity or complementarities in the methods of production, quality control and testing, energy consumption, pollution control, etc.

(b) Similar level of technology and marketing strategies/practices

(c) Channels for communication among the members of the cluster

(d) Common challenges and opportunities. The Ministries of MSME, Commerce and Industries, Human Resources, Medical and Health Care, Skill Development Institutions has evolved a variety of schemes benefitting Micro, Small, Medium and Larger Enterprises  .

  • Basic Draft Preparation: To study about the complete status of the cluster and documenting the process / Flow of goods/Critical constraints and Gaps/ Govt. assistance etc/ SPV contributions/Supportive document for DSR/DPR.
  • Soft Interventions: Technical assistance, capacity building, exposure visits, market development, trust building, Cluster Development Coordination Committee (CDCC) Meetings etc., SPV formations for the cluster units.
  • Diagnostic Study Reports: To map the business processes in the cluster and propose remedial measures, with a validated action plan
  • Detailed Project Report: To prepare a technical feasible and financially viable project report for setting up of a common facility centre for cluster of MSME and Large scale units and/or infrastructure development project for new industrial estate/ area or for up gradation of infrastructure in existing industrial estate/ area/ cluster.
  • Hard Intervention/Common Facility Centres (CFCs): Based on the gaps identified during the Diagnostic Study Report, Detailed Feasibility Report, Detailed Project Report and the Project Components for the Common facility will be finalised and implemented.


Objectives of the Scheme

  • To support the sustainability and growth of MSMEs and Large scale Industries by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc.
  • To build capacity of MSMEs for common supportive action through formation of self-help groups, consortia, up gradation of associations, etc.
  • To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSMEs.
  • To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes ).


Cluster Business Development Initiatives in Govt. Sectors

Govt. Schemes  Rs.Cr
Micro and Small Enterprises – Cluster Development Programme 15
Modified Industrial Infrastructure Upgradation Scheme 100
Textile Commissioners Office Projects (2.5 Cr.) 2.5
TANSIDCO Micro Cluster Projects (2.5 Cr.) 2.5
Mega Food Park Scheme 50
Scheme for Integrated Textile Parks 100
Scheme for Develop of AYUSH Clusters 15
Khadi Village Industries CommissionScheme of Fund for Regeneration of Traditional Industries – KVIC SFURTI 8
Integrated Processing Development Scheme 50
National Automotive Testing and R&D Infrastructure Project scheme – NAT Rip
Indian Leather Development Programme – ILDP 50
Comprehensive  Handloom Cluster Development Scheme – CHCDS 50



List of Common Facility Centres to be established by TTPK, Tiruppur

No. Special Purpose Vehicle Project Cost in Rs. Cr. Project Position
1 TTPK Apparel Cluster Private Limited, Tiruppur. 18.5 SIDBI Appraisal
2 SIIMKA Knitex Services Private Limited, Tiruppur 17.5 SIDBI Appraisal
3 Tiruppur Fashion Cluster Private Limited (NIFT TEA), Tiruppur. 15.0 GoI Steering Committee
4 Palladam Powerloom Weaving Cluster Private Limited, Tiruppur. 18.5 GoI Technical Committee
5 Kozhikode Wooden Furniture Cluster Private Limited, Kozhikode, Kerala. 15.0 GoI Steering Committee
6 Calicut Steel Furniture Cluster Consortium, Kozhikode, Kerala. 15.0 State Govt. Steering Committee
7 Erode RMG Cluster Private Limited, Erode 15.0 Preparation of DSR/ DPR