Rajasthan Government Launches Integrated Cluster Development Scheme for MSMEs and Artisans

On December 8th, 2024, the Industries and Commerce Department of Rajasthan issued a notification regarding the implementation of the Integrated Cluster Development Scheme, aimed at supporting the growth and competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in the state. This initiative will benefit key sectors, including handicrafts, handloom, and MSMEs, and is designed to align with central government cluster development programs.

Objectives of the Scheme

The primary goals of the Integrated Cluster Development Scheme include:

Support for Technical Upgradation and Skill Development: The scheme will provide assistance for technical advancements, skill improvement, and quality enhancement in sectors like handicrafts, handloom, and MSMEs.

Capacity and Quality Enhancement: Focus will be on boosting productivity, quality, and capacity of self-help groups, industrial associations, and federations associated with these sectors.

Infrastructure Development: Support will be provided for the development and improvement of basic infrastructure in industrial areas and MSME clusters.

Establishment of Common Facility Centers (CFCs): Assistance will be provided to establish testing centers, training centers, raw material depots, and collective production/processing facilities for artisans and MSMEs.

Market Development and Export Participation: The scheme aims to help MSMEs and artisans expand their market reach, enhance product quality, and lower production costs. It also seeks to improve their participation in the state’s economic growth and exports.

Quality Certification and Market Opportunities: The scheme will provide opportunities for MSMEs and artisans to gain quality certification, reduce product costs, and explore both traditional and e-marketing avenues.

    Key Components of the Scheme

    Support for Artisan and Craftsman Clusters:

    • Soft interventions for capacity building.
    • Operation of Raw Material Banks for easy access to raw materials.
    • Market development through e-Commerce platforms.

    Support for MSME Clusters:

    • State government assistance of up to Rs. 10 Crore for establishing Common Facility Centers (CFCs).
    • Help in participating under various central government schemes related to CFCs.

    Infrastructure Development:

    • Assistance for clusters in non-RIICO (Rajasthan State Industrial Development and Investment Corporation) industrial areas.
    • Support for new or greenfield clusters outside RIICO areas.

    Special Incentives:

    • Special incentives will be provided for Cluster Development projects across the state.

      Scheme Duration and Implementation

      • The Integrated Cluster Development Scheme will be applicable in Rajasthan until March 31st, 2029.
      • The Project Approval Committee (PAC), led by the Commissioner of Industries & Commerce, will oversee the approval and implementation of the scheme. The PAC will include representatives from various state and central departments.

      Project Approval Committee (PAC)

      The approval and monitoring of the scheme will be managed by a Project Approval Committee (PAC), comprising key officials:

      • Chairperson: Commissioner, Industries & Commerce
      • Members:
        • Representative of Finance Department
        • Director, MSMEs Development and Facilitation Office, Government of India
        • MD, RIICO or their nominee
        • General Manager, District Industries & Commerce Centre
        • Additional/Joint Commissioner (Cluster Development), Industries & Commerce

      The PAC will meet at least once every three months, with additional meetings convened at the discretion of the Chairperson.

      Conclusion

      The Integrated Cluster Development Scheme is a comprehensive effort by the Rajasthan government to empower MSMEs and artisans in the state. By improving infrastructure, enhancing productivity, and facilitating better market access, the scheme aims to help these sectors become more efficient, competitive, and market-oriented.

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