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Supplementary Agenda Government of India Ministry of Micro, Small and Medium Enterprises Office of Development Commissioner (MSME), 7th Floor, A Wing, Nirman Bhawan, Maulana Azad Road, New Delhi-110108 Supplementary Agenda for 51st Meeting of Steering Committee of Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) Date &Time : 12.09.2019 at 4:30 PM Venue : New Delhi Supplementary Description Page No. Agenda Points 51.3 (S) Proposals for In-Principle Approval Andhra Pradesh 51.3.28 (S) CFC in Auto & General Engineering Cluster, Kakinada 1 51.3.29 (S) CFC in Furniture Cluster, Rajahmundry, East Godavari 9 51.3.30 (S) CFC in Pulses and Pulses Products Cluster, Machavaram 15 51.3.31 (S) CFC in Garments Manufacturing Cluster, Nellore 22 51.3.32 (S) CFC in Printing Cluster, Kakinada, East Godavari 29 Karnataka 51.3.33 (S) CFC in Dairy Products Cluster, Terdal, Bagalkot 36 51.3.34 (S) CFC in Grapes & Raisins Processing Cluster, Jamakhandi, 43 Bagalkot 51.3.35 (S) CFC in Jaggery Manufacturers Cluster, Terdal, Bagalkot 49 51.3.36 (S) CFC in Borgaon Textile Manufacturing Cluster-Nippani Taluk, 56 Belgaum Tamil Nadu 51.3.37 (S) CFC in Fabrication Agricultural Implements Cluster, Perambalur 62 51.3.38 (S) CFC in Print and Pack Products Cluster, Krishnagiri, Hosur 68 51.3.39 (S) CFC in Weaving Preparatory (Warping and Sizing) Cluster, Erode 74 51.3.40 (S) New Industrial Estate at Kurukalpatti, Tirunelveli District 80 51.3.41 (S) New Industrial Estate at Perundurai, Erode District 83 Uttar Pradesh 51.3.42 (S) CFC in Terracotta Pottery Cluster, Gorakhpur 86 51.4 (S) Proposals for Final Approval Haryana 51.4.12 (S) CFC in Signage and Advertising Cluster, Mugal Majra, Karnal 92 Karnataka 51.4.13 (S) CFC in Spices Manufacturing Cluster, Betageri, Gadag District 98 51.4.14 (S) CFC in Jaggery Processing Cluster, Jalalpur, Raibag Tq, Belgavi 106 District Mizoram 51.4.15 (S) CFC in Wood Carpentry Cluster, Baktwang 114 51.6 (S) Time Extension Haryana 51.6.1 (S) Time extension to CFC in Footwear Cluster, Bahadurgarh, 124 Haryana ***** Agenda No.51.3.28 (S): Proposal for setting up of Common Facility Centre (CFC) in Auto & General Engineering Cluster, Kakinada, East Godawari District, Andhra Pradesh. Background The proposal was recommended by State Level Project Steering Committee (SLPSC) of Andhra Pradesh in its meeting held on 28.08.19. Vide application ref. No. 14560 dated 01.09.19 MSME-DI, Hyderabad recommended and forwarded the proposal. Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded by MSME-DI, Hyderabad vide email dated 01.09.19. Proposal was considered by Techno Economic Appraisal Committee (TEAC) in its 68th Meeting held on 04.09.19 and Committee recommended the proposal to place before Steering Committee for In-principle approval. Details of the proposal are as under: 1. Basic Information of Cluster Name of Cluster Auto and General Engineering Cluster District East Godavari Location of Cluster Kakinada Lok Sabha Constituency Kakinada Main Product Automobile servicing of Heavy & Light Vehicles, Body Building and Boat/Ship Body Building, General Engineering Work, Metal Fabrication Work, Minor Automotive Components manufacturing, Agricultural Equipments repair and manufacturing. No. of Enterprises Micro-200 (SC/ST owned-10 & OBC/Minorities Owned-20) including break up (Micro, Small, Medium) Turnover for the last five 2013-14 : Rs.34.75 years (Rs in Crore) 2014-15 : Rs.38.80 2015-16 : Rs.49.50 2016-17 : Rs.58.90 2017-18 : Rs.76.00 Exports for the last five Nil years (Rs in Crore) Employment in Cluster 4200 (Direct -700 & Indirect – 3500) Technology Details Average Technology Level with Conventional, Repairing tools, Milling, Lathe Machinery, Drilling equipments, metal cutting equipments, Metal Fabrication press, welding machines etc. Few of the units have Semi Automatic machines Whether DS Conducted Yes Main findings of DSR The major problem faced by the cluster units is the non availability of advance machinery needed in vehicle repair like the heavy duty Lathe machines, grinding machines, Milling machine, Valve grinding machine, Gear Hobbling machine, Profile Copying machine, Crank shaft grinders, CAM Shaft Grinders Boring machines, X-Ray/Magnetic Flux, Crack Detection Inspection machines, Fuel Injection Pump Calibration Machine, etc. None of the Cluster units have wheel alignment equipment for Heavy Vehicles and as a result the cluster units have to avail these facilities from nearby city Vijayawada. More than 50 percent of the work is outsourced due to lack of facilities 1 in the cluster. Also it is causing loss of time and transportation charges. Due to outsourcing of work from Kakinada to Vijayawada, Chennai, as a result, the profit margin of the cluster enterprises is falling drastically. The rate of employment generation in the automotive sector is falling as majority of the work is outsourced and there is very little work available to the members. The cluster units lack effluent treatment plant to treat their waste like grease and oil and burned fuel. This waste is just dumped into the drainage which may pollute the water and environment. Hence a common effluent treatment plant will solve this problem. Main Problems of Cluster Major problems of the cluster are identified as (i)Non- availability of advanced technology for major repair works (ii) lack of advance machinery for ship and vehicle body building works (iii) lack of testing and calibration facilities (iv) lack of effluent treatment plants (iv) lack of advanced painting machines (v) lack of skill training facilities 2. Information about Proposed CFC Description Proposed by Implementation Agency (IA) Remarks (a.) Justification for CFC The major advantage of the cluster is the city -- of Kakinada. Kakinada is a fast growing tourism hub. many national and international tourist visits Kakinada daily as a result the transportation industries are very important. the transportation industry is also required for supporting the huge industrial logistic handling of the Kakinada Port, Large scale Industries, Oil and Gas Industries, shipping industries and mining industries of the District. (b.) Location of CFC The cluster is located in Autonagar Industrial -- estate near Sarpavaram Junction, Kakinada Rural, East Godavari District, Andhra Pradesh % age of units in 200 -- radius of 5km % age of units in 0 radius of 10km (c.) Land for CFC i. Whether land Yes, on lease Registered land acquired document in the ii. Title is in name of SPV name of SPV (if land is on lease iii. Valuation and its -- basis, registered basis lease deed for a iv. Land is sufficient Yes minimum period of 30 years) is v. Change of land use Nil required. vi. If on lease, 30 Years duration of lease vii Whether lease is Yes legally tenable (d.) Total Building The SPV will take the building on lease basis, -- area(sq ft) built up area of 14000 Sft (e.) Rate of construction NA -- of building (f.) Main Facility Advance Machineries for Major Engine -- Proposed Rebuilding and Repair Work Advance Machinery for Vehicle 2 Description Proposed by Implementation Agency (IA) Remarks Body Building and Ship Body Building. Closed Chamber Automated Painting Facility Advance Machineries for Testing and Calibration Advance/Precision Machining Facility Training Facility Common Effluent Treatment Plant and Oil Recycling Plant (g.) Prod capacity of The proposed CFC will enable repair of 10 -- CFC engines/day, 4 vehicle body-buildings/day, pump repair 10 Nos. /day and also cater needs in general engineering, fabrication and precision components. (h.) Major Outputs/ S. Particulars Before CFC After CFC Deliverables of CFC, No. Projected performance (i) No. of units 200 250 of the cluster after (ii) Turnover Rs. 76.00 Rs. 125.00 proposed intervention (in (Rs. in crore) (2-3 years of terms of production, CFC) export/domestic sales (iii) Employment Direct -700 Direct -1000 and direct/ indirect Indirect -3500 Indirect -5000 employment, etc.) (iv) Others, if any Extra recurring Increase in Increase in expenditure, profit 25-30% Production increased process higher output cost and reduced no extra profit margins recurring cost. (i.) Pollution clearance SPV will apply for pollution control board for Required required or not NoC for the proposed activity after in-principle approval. (j.) Man Power in CFC Total 49 persons consisting of Managers, -- technical, skilled and supporting staff required for smooth functioning of CFC (k.) Revenue generation Revenue generation at 100% utilisation of the -- mechanism for proposed machinery of the CFC of Rs.1179 sustainability of lacs. assets(service/user charges to be levied, any other-to be specified) 3. Information about SPV Description Proposed by Implementation Agency (IA) Remarks (a.) Name and Address Autonagar Cluster Kakinada Special Certificate Purpose Vehicle CFC Welfare Association required Address: registered office at No. Plot No.104, Road No. 4, Autonagar Sarpavaram, Kakinada Rural-East Godawari District, (b.) Nature of The SPV is registered as M/s Autonagar -- SPV(company or Society Cluster Kakinada Special Purpose Vehicle or Trust) Common Facility Centre Welfare Association under Andhra Pradesh Societies Registration Act, 2001. (c.) Name of the State State Govt and MSME-DI will appoint their -- Govt. and MSME officials officials after final approval. in SPV (d.) Date of formation of 15/02/2018 -- 3 Description Proposed by Implementation Agency (IA) Remarks SPV (e.) Number of Members 200 -- (f.) Bye Laws or MA and submitted Required AOA submitted (g.)
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