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Thread: Ministry of Textiles - Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

  1. #11
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    Thumbs up Comprehensive Handicrafts Cluster Development Scheme (CHCDS) - Eligible Agencies.

    Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

    11. Eligible Agencies

    11.1 The Implementing Agency (lA), which will be a Special Purpose Vehicle (SPV), shall be a legal entity, preferably a Company with the participation of related stakeholders, particularly the leading manufacturers, suppliers, buyers, and artisan federations/SHGs. The SPV shall be selected preferably through open competitive bidding process. However, selection of SPV would mainly depend on the project profile, activities required to be intervened and on various other parameters, therefore selection of such suitable SPV after seeking formal approval of PAMC. As Handicrafts sector is highly unorganized, the procedure for selection of SPV in special cases shall be kept open for PAMC/Government.

  2. #12
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    Thumbs up Comprehensive Handicrafts Cluster Development Scheme (CHCDS) - Implementation Methodology & Framework.

    Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

    12. Implementation Methodology & Framework

    12.1.
    A project of this nature, which is need based, multi stakeholder driven, holistic and outcome oriented, would require institutional structure and processes that are capable and conducive to achieving the objectives of the program. The following will be the methodology and process through which the project would be implemented: -

    12.1.1 Undertaking a detailed diagnostic study of the cluster in order to identify the needs, gaps and also developing base line reference data.

    12.1.2 Preparation of a Detailed Project Report (DPR) covering technical, financial, institutional and implementation aspects, based on the diagnostic study. This DPR would clearly establish the expected outcomes of each of the interventions, which are measurable.

    12.1.3 Validation of the findings of the diagnostic study and the DPR by the key stakeholders of the cluster including representative associations I federations of the artisans, support institutions, service providers, State Government and Central Government agencies.

    12.1.4 Establishment of Special Purpose Vehicle (SPV) at cluster level with representation of key stake holders.

    12.1.5 Approval of the DPR by PAMC under Ministry of Textiles.

    12.1.6 Procurement of land, wherever needed for any of the interventions of the DPR, by the SPV

    12.1.7 Implementation of the interventions as per the phasing mentioned in the DPR.

    12.1.8 Monitoring and evaluation of the implementation of the interventions against the outcomes defined in the DPR.

  3. #13
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    Thumbs up Comprehensive Handicrafts Cluster Development Scheme (CHCDS) - Implementation Structure.

    Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

    13. Implementation Structure

    13.1 Considering the challenges and the complexities of the proposed program, the following implementation structure is envisaged:

    13.2 Project Approval and Monitoring Committee (PAMC)

    13.2.1 The Detailed Project Report (DPR) shall be considered and approved by the Project Approval and Monitoring Committee (PAMC). The PAMC shall accord further approvals only after the comprehensive DPRs are in place. The implementation of the various projects should also be reviewed periodically by the PAMC. The composition of the PAMC would be:

    Secretary (Textiles) Chairman
    Advisor (Industry), Planning Commission Member
    Additional Secretary & FA, M/o Textiles Member
    Joint Secretary (PF-II), D/o Expenditure Member
    Development Commissioner (Handicrafts) Member
    Joint Secretary(Mega Cluster), M/o Textiles Member
    Joint Secretary of Schemes of the concerned Ministries/Departments Member
    District Magistrate or Deputy
    Commissioner of Moradabad / Narasapur
    Member
    Secretary of the Dept. dealing with Handicrafts in the state Member
    Economic Advisor, Ministry of Textiles Member
    Director (Mega Cluster), M/o Textiles Member
    Additional Development Commissioner (Handicrafts) Member Secretary

    13.3 Cluster Advisory Group (CAG):

    13.3.1 As the Handicrafts clusters are very diverse and involve several organizations of the Government and Non-Government, an advisory group would be set up at the cluster level with the representation of all such organizations and other key stakeholders to guide and support the SPV.

    13.4 Cluster Management and Technical Agency (CMTA):

    13.4.1 The nature of the proposed project warrants proactive technical and managerial assistance on "concept" to "commissioning" basis. In view of limitations of the Government agencies in playing a catalytic role as envisaged, the services of a professional agency will be utilized by the Ministry of Textiles as CMTA for each of the clusters.

    13.4.2 Such agency shall have proven capability in terms of technical, managerial, financial, infrastructure and capacity building expertise that are required to design and execute cluster oriented interventions.

    13.4.3 CMTA, apart from assisting the Ministry of Textiles in designing and monitoring of the project, will proactively work with the cluster stakeholders and the SPV in implementation of the interventions. The illustrative list of responsibilities of such CMTA are given below:

    13.4.3.1 Conducting diagnostic study.

    13.4.3.2 Preparing DPR.

    13.4.3.3 Sensitizing and mobilizing the stakeholders to be part of the proposed project.

    13.4.3.4 Establishment and structuring of the SPV.

    13.4.3.5 Assisting the Ministry/SPV in releasing/mobilizing funds for the project. Such mobilization would involve preparation of proposals under relevant schemes of the Government apart from tying up loans from the banks.

    13.4.3.6. Assisting the SPV in obtaining requisite statutory approvals/clearances.

    13.4.3.7. Assisting the SPV in identification and engagement of service providers/consultants for various services related to specific Handicrafts technology, processing, designing, skill development, marketing, engineering, financing etc, for implementation/execution of the interventions outlined in the DPR.

    13.4.3.7. Providing interfacing support and linkages between the SPV and various other stakeholders, particularly the Government organizations, buyers and financial institutions.

    13.4.3.8. Providing periodical progress reports to the Ministry of Textiles with respect to achievements of the stated outcomes.

  4. #14
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    Thumbs up Comprehensive Handicrafts Cluster Development Scheme (CHCDS) - Special Purpose Vehicle (SPV).

    Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

    14. Special Purpose Vehicle (SPV):

    14.1 A multi stakeholder cluster level legal entity, registered under societies act or Companies Act will be set up for each of the clusters. It will be the recipient of grant support from the Ministry of Textiles and other agencies.

    14.2 Such SPV shall be responsible for ownership, execution and management of the interventions I facilities created under the project.

    14.3 The majority of the equity of such SPV shall be with the artisans/craftsmen/Entrepreneur of the cluster and I or their associations I cooperatives I federations/ SHGs. The remaining stake will be held by strategic investors such as buyers, large scale production units, banks, financial institutions, State Government agencies, etc. However, the individual stake of the aforesaid agencies shall not exceed 26%.

    14.4 There shall be a provision to setup more than one SPV in a cluster for speedy & effective implementation of the programmes. For example: at Narasapur cluster, considering vast geographical spread of artisans and requirement of skill up gradation of large number of artisans, there could be four SPV’s. SPV-1 may focus on infrastructure related developments, SPV-2 to focus on Design, Technological & HRD needs, SPV-3 may look into the domestic marketing needs and SP-4 to address the export potential of the cluster. However, all the four SPV’s shall have better coordination among them, while implementing the project to avoid overlapping of activities.

    14.5 SPV would be responsible for maintaining the utilities and infrastructure created by collecting service and user charges to recover cost and future expansion.

  5. #15
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    Thumbs up Comprehensive Handicrafts Cluster Development Scheme (CHCDS) - Monitoring of expenditure on infrastructure projects

    Comprehensive Handicrafts Cluster Development Scheme (CHCDS)


    15. Monitoring of expenditure on infrastructure projects

    15.1 Given the magnitude of funds allocated for infrastructure development, it is imperative that expenditure under this head be monitored more rigorously. Accordingly, suitable formats will be prescribed for monitoring purposes. The data will be consolidated by the Implementing authority and sent to the Central Government on a quarterly basis.

  6. #16
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    Thumbs up Comprehensive Handicrafts Cluster Development Scheme (CHCDS) - Deliverables/Advantages of the proposed Clusters.

    Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

    16. Deliverables/Advantages of the proposed Clusters

    16.1 Social:


    16.1.1. Employment Generation;
    16.1.2. Better living standards for the existing artisans.

    16.2 Economic:

    16.2.1 Foreign Exchange earnings by export;
    16.2.2 Substantial Increase in quality and value added Production;
    16.2.3 Increase in the business of small entrepreneurs;
    16.2.4 Savings in cost by manufacturers in the cluster due to better infrastructure and Government induced benefits;
    16.2.5 Revenue generation to local bodies and State & Central Governments;
    16.2.6 Growth of industry in an organized form.

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