The objective is to develop these two clusters with world-class infrastructure. The guiding principle behind the design of clusters would be to create world-class infrastructure that caters to the business needs of the local artisans & SMEs to boost production and export. In brief, the main objective of setting up these clusters is to assist the artisans & entrepreneurs to set up world-class units with modern infrastructure, latest technology, and adequate training and HRD inputs,-Government Schemes for Handicrafts

Targeted Clusters

Two clusters i.e Moradabad (Uttar Pradesh) and Narasapur (Andhra Pradesh) with more than 20000 artisans have been identified for scaling up infrastructure and production base.

Project Components

The coverage of the proposed project will be need based of the given cluster and would include the components that are necessary for meeting the objectives as stated above. Detailed list of the components that will be addressed through the proposed project are discussed below:

 Technology Upgradation:

Modernization/ Upgradation of tools and machineries, processing and other methods of manufacturing. To assist entrepreneurs/ exporters to modernize/set up world class facility/ units with latest technology, which helps to compete in the growing competitive world market, there shall be a support from Government by way of one time grant in the ratio of 30:70, wherein Government share shall be 30% with a maximum assistance of Rs. 60 lakhs per unit. This would facilitate flow of latest technology.

Product Diversification:

Upgrading and diversifying the present product range to meet the needs of contemporary market requirements through design development, quality improvement, etc.

 Raw Material Bank:

Establishment of Raw Material Bank for continuous availability of Quality & Graded Raw material.

Common Facility centre (CFC) :

CFC will comprise State of the art machines which normally an individual can not buy on his own. Such facility would be open to individual artisans and SME’s. This facility would provide access to High tech facility at reasonable price as user has to pay only operating expenses.

Resource centre:

Establishment of Resource centre as one point information centre in a choosen craft. Such facility would act as an arsenal in the hands of artisans. They can approach the resource centre for any problem in a particular craft.

 Market Development:

Targeted efforts to enhance the share of the cluster products in domestic as well as export markets through brand promotion, exhibitions, buyer seller meets, retail space, warehouses, E-Commerce, etc.

 Forward & Backward Linkages:

Provision of need based infrastructure in the form of Handicrafts parks, common facility centres, testing labs, design studios, R&D, TQM, etc. 6.1.8 Human Resource & Skill Development: Provision of Training, Recruitment Center and consultancy. Upgrading and imparting need based technical skills so as to improve quality and productivity, apart from coverage under entrepreneurship development programs and other soft skills. An SPV of Artisans’ Federations shall be eligible for executing this component.

Social Security:

 Covering the artisans in the cluster under various social security schemes, such as group insurance, small savings, financial institutions, etc. Civic amenities with in the Handicrafts Park

 Physical Infrastructure:

Land development, roads connectivity, water treatment & supply, power supply, housing-cum-work sheds and other common buildings, Tele-communication network, sewerage, Effluent Treatment Plant & Solid Waste Management, etc. (Civic amenities mentioned above will be restricted to Handicrafts park).

Export & Marketing:

Provision of Clearing facility, Customs office and Trade Center, Exhibition hall, etc.

Margin Money for Working Capital:

 Margin money for working capital for the artisans is an essential input as it provides sufficient leverage to the artisans to complete one cycle of production-cum-marketing in a period of about 3 months. Provision of margin money @ Rs.4000/- per artisan of the federation may be kept (in line with the ongoing AHVY Scheme)

Funding pattern

Establishment of Baseline data:

Funds to the tune of 3% (max.) of project cost shall be earmarked for establishing baseline data / DPR against which performance can be compared at the end of the project.

Funds in the pattern as in table below would be released in 3 installments

  1. 1st installment of 40% as advance on SPV acquiring land.
  2.  2nd installment of another 40% on utilization of 2/3 of first installment.
  3. Balance as 3rd and final installment as reimbursement.
Soft skills such as skill development Training, Product Development workshop, etc.I year – 100% II year – 90% III year – 75% IV year – 75%Rs 10 crores/ projectNil 10% 25% 25%
Common production related Infrastructure which are artisan centric such as CFC, Work shed, etc100%Rs 20 crores/ projectLand and recurring expenditu re
Other commercial infrastructure – such Gas pipe line, etc75%Rs 20 crores/ project25% and recurring expenditu re
Facility Centers for Exporters/entrepreneu rs30%Rs. 2 crores/ facility centre/Entre preneur70%

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