In the country's annual budget, amount for development under "MSE cluster development program" has been doubled compared to previous years from 26 crores. In our country, more than 6,000 micro and small industrial units are clusters i.e. MSE clusters. In view of their development, this amount is almost nothing.
Group of mass industrial activity is called industry cluster and where there are many micro and small industrial units has been rated as MSE(Micro and Small Enterprises).
When the trend of globalisation begin in India, it came as a threat for small scale industries. It was felt that with the advent of multinational companies, our small units might not survive. Then brought up the idea of cluster development through which collective development programs could be run for small industries so that they remain prepared for the upcoming competition. Indian government adopted the cluster development approach to enhance the quality and technical efficiency of small industries among them.
Ministry of MSME has formed the MSE cluster development progam under which the process of soft intervention and hard intervention has been adopted.
Under the soft intervention motivation and training etc. are covered. This project has the limit of Rs. 2.5 millions in which government of India's contribution is of 75% and under special catefory it has limit of 90%.
Under hard intervention there is provision for common felicitation centre, technology development and infrastructure development. It is priced as Rs. 150 million in which government of India's contribution is of 70% and for special category it has limit of 90%.
Government must ensure that to implement a smooth transition of cluster development program across the country, the absence of money do not become a problem somewhere.