EVALUATION STUDY OF MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP).

  1.1 Background:
          The Ministry of MSME, Government of India has adopted the cluster approach as a key strategy for enhancing the productivity and competitiveness as  well as capacity building of Micro & Small Enterprises and their collectives in the country. Among other things, this approach also facilitates substantial  economies of scale in terms of deployment of available resources for effective implementation and more sustainable results in the medium to long-term. In this  context, in the year 1998, a scheme namely 'Integrated Technology Upgradation and Management Programme' (UPTECH) was launched to address the issues  related to Technology Upgrdation and Modernisation of MSE sector on cluster approach basis. Later on, it was felt that for overall development of a cluster,  holistic approach has to be adopted. Accordingly, UPTECH was renamed as Small Industry Cluster Development Programme (SICDP) in the year 2003. With  announcement of promotional package for Micro & Small Enterprises on Ist October, 2006, the scheme has been renamed as Micro & Small Enterprises  Cluster Development Programme (MSE-CDP).

 1.1.1 Overall Progress under MSE-CDP:

  Total Clusters taken up under MSE-CDP - 328
  Intervention in 90 clusters (up to end - March, 2007). Combination of soft and hard interventions.
  Hard interventions - setting up of CFC, Mini Tool Room, Testing Centres etc. 23 clusters
  66 new clusters approved for interventions in 2007-08
  Diagnostic studies under progress in 100 clusters
  72 fresh Diagnostic Studies/ Viability Studies approved during 2007-08.


 1.2 Objective of the assignment:
       The purpose of this evaluation is to provide an indication of how successful the scheme has been in achieving the objectives with which they were  conceptualized.

 1.3 Terms of Reference (TOR): The main aim of this evaluation is to assess the effectiveness of the schemes through primary and secondary sources. The  scope of work includes -

  (1) Have soft interventions in Clusters led to:

 a) Improvement in the skill
 b) Adoption of new skills, techniques/technologies
 c) Broadening the consciousness of the Cluster actors regarding modern trends and demands
 d) Use of better manufacturing practices
 e) Enhancing share of clusters actors in domestic as well as in global market


  (2) Have the hard interventions, where Common Facilities have been created led to

 a) Improvement in products
 b) Improvement in processes and technologies
 c) Cost competitiveness
 d) Diversification
 e) Proper user fees and self-management of SPVs
:

 (3) What are the specific areas where further improvements of the existing schemes could be considered.

 (4) Has the Cluster Development Schemes led to better cohesion and cooperation between individual enterprises within the Clusters and has it given them a  sense of common identity - in order to take on competition.

 (5) Are the procedures of approval and receipt of funds appropriate or are changes suggested.

 (6) To determine the outreach and access of the Scheme in general with particular reference to the North-Eastern Region and suggest ways and means to  improve the outreach and access of the Scheme in the North-Eastern Region. Economic impact of the scheme on intended beneficiaries including women,  SC/ST, Minority communities, and NER beneficiaries.

 (7) Preparation of evaluation benchmarks of progress and monitoring the performance of the Clusters taken for development under the scheme.

 (8) The cluster ability to avail other Government beneficial programme including credit.

 1.4 Deliverables:
 a) Inception report 02 weeks from start of assignment
 b) Draft report 02 month from start of assignment
 c) Final report 03 months from start of assignment


 1.5 Duration of consultancy: The time duration for completion of the consultancy assignment is 03 months from the date of commencement of the assignment.  Draft report should be submitted by the end of second month. After receiving the final draft report from the Government, the consultant should submit the final  report within one month from the date of its approval.

 1.6 For evaluation of proposals, schedule of payment and other general terms & conditions approved methodology of the Ministry of MSME under the scheme  of Surveys & Studies would be followed.