Date:08/01/2008 URL: http://www.thehindu.com/2008/01/08/stories/2008010853770400.htm

Karnataka - Bangalore

‘Small units in distress can seek aid under cluster development scheme’

Special Correspondent

Not many units in State have availed themselves of the benefits: Dhillon

Under the scheme, a group of units engaged in similar trades could approach the institute
The institute will also help clusters to have financial tie-ups with banks

BANGALORE: Now small and micro enterprises that are in dire straits due to tough global competition can look forward to technological and other related assistance from the Micro, Small and Medium Enterprises Development Institute of the Union Ministry of Micro, Small and Medium Enterprises (MSME) under the cluster development scheme.

Presentation

After making a presentation on MSME Development Act to the members of the Federation of Karnataka Chambers of Commerce and Industries on Monday, MSME Development Institute Director S.S. Dhillon told The Hindu that so far not many industries in Karnataka had availed themselves of the benefits from such a scheme, barring some garment firms.

Problems

Under the above scheme, a group of a minimum of 30 micro and small enterprises engaged in similar trades could approach the institute if they thought that they were lagging behind in competition. The institute would study their problems, including the need for technology and infrastructure upgrading.

It would make a recommendation to the Union Government for assistance and also implement the relief measure.

It would also help such clusters to have financial tie-ups with banks, Mr. Dhillon said.

So far, only garment firms had approached the institute. Those interested in availing themselves of the benefits could contact his office (Phone: 23151540), he pointed out.

He said the Centre had also taken up another scheme under which his institute would reimburse a part of the expenditure incurred by the micro and small enterprises to get the ISO 9000 certification.

The reimbursement would be up to a maximum of Rs. 75,000, he said.

Programme

Meanwhile, a programme had been planned in Bangalore on January 10 to showcase various Central schemes which were meant for industries and entrepreneurs. The programme was being organised jointly by Karnataka State Small Industries’ Association, National Small Industries Corporation, and MSMED, Mr. Dhillon added.