Adopt Cluster Development Approach for Enhanced Productivity: Nirmala Sitharaman

Our Correspondent

ITANAGAR: Union Finance Minister Nirmala Sitharaman on Tuesday advised the Arunachal Pradesh government to adopt the cluster development approach as a key strategy for enhancing productivity and competitiveness as well as capacity building of micro and small enterprises (MSEs) in the state.

Addressing a credit outreach programme organized by the State Bank of India, she said that Arunachal Pradesh does not have even a single cluster announced by the MSME ministry till date.

“I request Chief Minister Pema Khandu to take up the cluster development approach of the 20 GI-identified products in the state. In small places such clusters could be declared by the ministry and Small Industrial Development Bank of India (SIDBI) could be roped in to finance such enterprises,” the Finance minister said.

A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area producing same and similar products and services. The MSME ministry has adopted the cluster development approach to help MSEs become more competitive and productive. The approach includes establishing common facility centres (CFCs) to support the growth and sustainability of MSEs.

The essential characteristics of enterprises in a cluster are similarity in the methods of production, quality control and testing, energy consumption, pollution control, similar level of technology and marketing strategies and practices, similar channels for communication among the members of the cluster, common market and skill needs, and common challenges and opportunities that the cluster faces.

Sitharaman said that in Arunachal Pradesh, small industry development and enterprises related to agri and allied sectors could be taken up and credit outreach programme is a beautiful platform through which schemes like PM SVANidhi, Stand-up India, Kisan Credit Card, PM MUDRA, NRLM-SHG, PM Surya Ghar and PMEGP, could be taken up.

“Prime Minister Narendra Modi has already launched 17 schemes to benefit the people through bank loans for which no guarantee is required,” she said. The Finance minister said earlier it was very difficult for entrepreneurs to get a loan as banks wanted a guarantee. However, after Modi came to power in 2014, he made it mandatory that every family in the country should have a bank account under the Jan Dhan Yojana.

“Modi launched several schemes which do not require any guarantee and banks will pay loans without even asking for a single paper,” she added.

Earlier, the minister handed over an ambulance and a hearse van to the police headquarters here under the CSR activity of SBI and also handed over 50 bicycles to girl students donated by SBI.

Sitharaman also flagged off two demonstration vans for financial literacy donated by NABARD under its CSR activity and also flagged off a mobile medical unit for conducting medical camps in rural areas of the state, donated under the CSR activity of SIDBI.

The minister also handed over sanction letters from banks to beneficiaries under various central government schemes during the event and disbursed loan amounts worth Rs. 14.41 crore to 160 beneficiaries under various schemes. The Finance Minister while attending another credit outreach programme at Namsai, an aspirational district, during the day praised the efforts of the banks and encouraged them to prioritize the financial upliftment of Arunachal Pradesh. She underscored the need for greater access to banking facilities, such as banking correspondents and additional bank branches, to enhance financial inclusion throughout the state, officials from the district informed.

“This increased access will support new business ventures, allowing the people of Arunachal Pradesh to prosper and thrive,” the minister said.

Sitharaman reiterated the need for banks to focus on the development of Namsai, recognizing its potential within the aspirational districts programme. The event drew 300-400 attendees, including beneficiaries eager to learn about available schemes. As many as 195 beneficiaries received sanction letters amounting to Rs. 6.8 crore under various financial schemes. NABARD also sanctioned Rs. 92.5 lakh for initiatives such as GI registration, rural marts, and micro-ATMs, while SIDBI provided Rs. 1.5 lakh for women’s livelihood programmes.

SBI’s CSR efforts in Namsai included the donation of a school bus and 100 bicycles. Sitharaman also inaugurated the Regional Business Office (RBO) of SBI, which aims to boost financial services in the aspirational district, and planted a sapling at the campus as part of the ‘Ek Ped Maa Ke Naam’ campaign, initiated by Prime Minister Narendra Modi, underscoring a commitment to sustainability and community welfare.

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