FM Sitharaman tells Arunachal government to adopt cluster development approach

Union Finance Minister Nirmala Sitharaman | (Photo: PTI)

3 minutes of reading Last update: October 1, 2024 | 13:06 IST

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

Addressing the credit assistance program organized by State Bank of India here, she said that till date, there is not a single cluster announced by the MSME ministry in Arunachal Pradesh.

Click here to connect with us on WhatsApp

“I request Chief Minister Pema Khandu to adopt a cluster development approach for 20 GI products in the state. In small towns, the ministry could declare such clusters and the Small Industries 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 in an identifiable and, if possible, adjacent area, producing the same and similar products and services.

The Ministry of MSMEs has adopted a cluster development approach to help SMEs become more competitive and productive. This approach includes the establishment of Common Facility Centers (CFCs) to support the growth and sustainable development of SMEs.

The essential features of the enterprises in the cluster are similarity of production methods, quality control and testing, energy consumption, pollution control; similar level of technological and marketing strategies and practices, similar communication channels between cluster members, common market needs and skills, and common challenges and opportunities facing the cluster.

Sitharaman said in Arunachal Pradesh that development of small industries and enterprises related to agriculture and allied sectors can be undertaken and the credit assistance program is a beautiful platform through which programs like PM SVANidhi, Stand-up India, Kisan Credit Card, PM MUDRA, NRLM- SHG, Prime Minister Surya Ghara and PMEGP could be included.

“Prime Minister Narendra Modi has already launched 17 schemes to provide benefits to citizens in the form of bank loans for which no guarantee is required,” she said.

The Minister of Finance said earlier that it is very difficult for entrepreneurs to obtain a loan because banks want guarantees. However, after Modi came to power in 2014, he made it mandatory for every family in the country to have a bank account run by the Jan Dhan Yojana.

“Modi has launched several schemes that do not require any guarantee and banks will repay the loans without even asking for a single document,” she added.

Earlier, the minister handed over an ambulance and a hearse to the police station here as part of SBI’s CSR activities and also handed over 50 bicycles donated by SBI to female students.

Sitharaman also tagged two financial literacy demonstration vans donated by NABARD as part of its CSR activities and also tagged a mobile medical unit for conducting medical camps in rural areas of the state, donated as part of SIDBI’s CSR activities.

During the event, the minister also handed over sanction letters from banks to beneficiaries under various schemes of the central government and disbursed loan amount worth Rs 14.41 crore to 160 beneficiaries under various schemes.

Later, Sitharam went to Namsai to take part in another loan assistance program and inaugurate SBI’s regional office.

(Only the headline and image of this report may have been reworked by the Business Standard team; the rest of content is automatically generated from a syndicated feed.)

First publication: October 1, 2024 | 13:06 IST