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~~5---• (Ix) for the Purchase of Raw Material, Joint Purchases with Other Similar Clusters May Be Explored, Asfar Asapplicable Record Note of the 38th Meeting of SFURTI Scheme Steering Committee (SSe) held on 25.03.2021 through VC under the Chairmanship of Secretary. MSME 1. At the outset. Director (ARI) welcomed Secretary (MSME) and other participants to the meeting. 2. JS (ARl) made an introductory remark highlighting the following: 2.1 Till date 394 clusters have been approved under SFURTl, out of which 103 have become functional as on date. 40 more clusters are likely to be functional by lSthApril 2021. 2.2 JS (ARl) has visited four clusters in March, 2021, which are at different stages of implementation. Based on these visits, certain learnings have emerged to improve the implementation and functioning of clusters. (l) In the interest of transparency, there should be no cash payments to artisans and vendors; Nodal Agencies should take all measures to ensure financial transactions are made digital (ll) Appointment of Cluster Development Executives (CDEs) should be given due importance. CDEs must be well qualified and experienced, as recommended in the scheme guidelines. CDEs must be given suitable remuneration based on her/his qualifications and experience as the CDEs have a major role in the implementation of a cluster. (iii) Quality of CFC construction and building material needs be checked and verified on a regular basis. NAs should visit the clusters regularly to ensure the same. (iv) In some of the clusters, tendering process followed by NAs is inadequate causing delays and over-expenditure in some cases. This process needs to be upgraded and standardized and the capacities of NAs needs to be strengthened in this area. (v) Representatives from NA and TA should visit the cluster location at least once and twice a month respectively to carry out detailed analysis of the progress. (vi) The Managing Committee of the clusters should include local eminent people, finance expert, marketing expert, technical expert, engineering expert, etc. (vii) The cluster should be developed as a model cluster and convergence may be examined with schemes of Gramodyog Vikas Yojana like putting up Gobar Gas Plant, etc (viii) lAs in all clusters should plan for websites to facilitate online order of cluster products. Record Notes of 38th sse meeting ofSFURTI(25.3.2021) Page 1 L--- ~~,~~5---• (ix) For the purchase of raw material, joint purchases with other similar clusters may be explored, asfar asapplicable. (x) Local tie up with Design Institutes, NITs, engineering colleges should be ensured by all NAs. (xi) Lean Manufacturing, Industry 4.0, end to end Digitisation should be ensured. (xii) lAs should ensure payments to artisans digitally. Profit sharing with SPVshould be properly fixed and made known to all members. (xiii) Marketing tie ups should be planned in advance and long term linkages to be established with the purchaser, exporter and raw material suppliers. (xiv) There should be proper monitoring of raw material coming to the cluster and finished products going out through digital monitoring. (xv) All SFURTI clusters in the State should be linked with other similar cluster for interchanging new technology, marketing avenues and ensuring raw material supply at reasonable cost through collective engagement. (xvi) Clusters units may be provided with handholding support and encouraged to register on GeM portal. 2.3 NAs must be given a time of 3 to 4 months to develop a proposal once it is uploaded on the portal by an lA, instead of the 2 month period as is being presently considered. CEO KVIC concurred with the timeline of minimum 3 months for the NAs to examine and forward a cluster proposal to the Ministry. CEO KVIC also added that the real test of successof the schemewould be to see how many clusters are handed over to the SPVsby the lAs after 3 years and the Ministry should consider tracking it. 2.4 Two capacity building trainings over VC are scheduled on SthApril and 7thApril, 2021 with NAs and TAs by the Ministry. 3. Agenda Item 1: Since no representation/ observation was received in respect of decisions of the 3Thmeeting of SSC, minutes of the 37thmeeting of the SSC held on 01.03.2021 were noted and confirmed. 4. Agenda Item 2: To consider mechanism for selection of proposals to widespread the reach of SFURTI. The committee made the following decisions regarding the mechanism of selection of proposals going forward: Record Notes of 38thsse meeting ofSFURTI(25.3.2021~ .. Page 2 -t~ ~ a. All the proposals will be taken for appraisal and evaluation through portal only. All NAs to upload the DPRs for evaluation on portal. .b. Proposals from new districts and/or aspirational districts will be given priority. At least 500/0 of the proposals to be brought before the SSC should be from new and lor aspirational districts. c. Remaining 50% proposals can come from districts that already have some approved clusters. Proposals with new products in districts with already approved/ongoing clusters can be considered purely on merit like adequate market potential, create significant livelihood opportunities, existing cluster have progressed well and shown impact, etc. Proposals for the same product in a district should be considered when the existing approved clusters of the same product have progressed well and the product has sufficient market. All these proposals will be examined by a Committee headed by the Joint Secretary, ARI with EA and CEO KVIC as members, before recommending them for the consideration of the SSe. 5. Agenda Item 3: Consideration of 12 proposals in total, 4 received from KVIC, 2 received from llE Guwahati,l from CTIC Bhubaneswar, 4 received from CoHands, and 1 received from NIMSME respectively. 5.1 4 Proposals by KVIC are as under a. Kalakruti Garment Apparel Cluster, Gujarat The Kalakruti Garment Apparel Cluster, Mehsana, Gujarat was presented by representative of Nodal Agency (NA) before the SSC as a Regular Cluster. The total no. of artisans who would get benefited under SFURTI intervention through this cluster will be 309 artisans (70-SC, 92-0BC, Minority-135 and 12- Others). The cluster is proposed with 100% female artisans (women based Cluster) & the major activity is to produce Home Decorative items, kurta, gift pouches, cushion patchwork, baby mittens etc. The prime objective of the cluster is to organize an amalgamation of traditional designs or fashionable designs in the apparels sectors of Gujarat to meet the market demand. At the same time, this cluster will preserve traditional embroidery techniques along with design intensive, branding and marketing as well as artisans in cluster mode and upgrade their skills associated with apparel and other value added products in the Mehsana district of Gujarat. The proposed CFC shall produce high quality garments and other utility products. It was informed that the economic benefit expected by these interventions would be significant incentive/ remuneration from present earnings of Rs.4500-6000/- to Rs.12500/- p.m. to each artisan at the end of the 5th year. Page 3 Record Notes of 38th sse meeting ofSFURTI(25.3.2021) It was also confirmed that land is arranged on lease basis and SPV is formed with mandatory requirement of 33% artisan members. The interventions under SFURTI will support to elevate the turnover of the cluster and will improve the income of the artisans over the project period. Representative of NA explained that marketing tie-up for the cluster has been planned and they are exploring opportunities on E-Commerce platform for selling diversified products range which will help them realize higher value of the produce and will directly benefit the artisans associated with the cluster. KVIC informed the committee that Mehsana District has no other cluster by state / central government. Efforts for convergence for marketing with other handicraft produces / marketers connecting with Garvi Gujarat and Okhai etc. The total project cost is Rs.141.372 lakhs, out of which support cost of Rs.130.152 lakhswill be provided under SFURTI assistance. The first year turn over is planned to be more than Rs. 3 crore as per DPR. SSC considered the project and approved it with a financial assistance of Rs.130.152 lakhs. SSC considered the project and approved it with a financial assistance of Rs.130.1521akhs. b. Nalanda Embroidery Cluster, Bihar The Nalanda Embroidery Cluster, Nalanda, Bihar was presented by representative of Nodal Agency (NA) before the SSC as a 'Regular Cluster' with 364 artisans (112-SC, 5-ST, 228-0BC 6-Minority and 13- Others). Out of 364 artisans, 59 (16%) artisans are women. The Nalanda District comes under Atmanirbhar Bharat Abhiyan (ABA) District of Bihar. The major activity of the cluster is to produce designed Embroidery such as Crewel Embroidery, Sozni Embroidery, Chamba Rumal, Phulkari, Zardozi, kenthe, Sujni. In addition, the cluster will produce Chagra, Choli, Blouse, Kurte, Bedspread, serees, Wall hanging, table cloth etc. The core objective of the Cluster is to organize traditional artisans in cluster mode and upgrade their skills associated with embroidery. The proposed CFC shall produce high quality embodied products and other value added products at reasonable cost. It was also informed that the economic benefit from the proposed interventions would be significant incentive/ remuneration from present earnings of Rs.6000/- to Rs.12000/- p.m. to each artisan at the end of the 5th year. It was confirmed by NA of cluster that land has been leased for the period of 30 years and SPV is already registered in the name of Shilpa Bandhu Producer Company ltd. The Integrated interventions under SFURTI will support to Record Notes of 38th sse meeting ofSFURTI(25.3.202~) . lr Page 4 ~~v~ ~7)~1 elevate the turnover of the cluster and will improve the livelihood of the artisans over the project period.
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