Cluster development scheme for powerlooms gets CCEA's nod

21 Sep '13

2 min read

India’s Cabinet Committee on Economic Affairs (CCEA) has given its approval for continuation of Comprehensive Powerloom Cluster Development Scheme (CPCDS), a Central Sector Plan Scheme, during the 12th Five-Year Plan.

The modified scheme with an outlay of Rs. 1.1 billion for 12th Plan will be implemented through a Public Private Partnership (PPP) model.

In addition to CPCDS, the CCEA has also approved modification of the guidelines of the scheme for development of Powerloom Mega Clusters at Ichalkaranji, Bhiwandi and future projects.

CPCDS assistance under the modified scheme would supplement the development of existing brownfield facilities and infrastructure and enhance their productivity through provision of common infrastructure facilities, modern technology, designing, testing, skill development etc.

A gap filling exercise for each cluster would identify the need based infrastructure that is to be funded. The most important change approved in the modified guideline is that the Government to private funding ratio would be 60:40 instead of the existing 40:60.

However, the overall limit of CPCDS grant has been decreased to Rs. 500 million during the 12th Plan from the existing Rs. 700 million.

CPCDS was launched in 2008-09 by the Central Government for development of Powerloom Mega Clusters at Bhiwandi (Maharashtra) and Erode (Tamil Nadu) as a Central Sector Plan Scheme during the 11th Five Year Plan, with a budget provision of Rs. 700 million for each cluster to assist the entrepreneurs to set up world-class units with modern infrastructure, latest technology and adequate training and Human Resource Development (HRD) inputs along with appropriate market linkages.

Subsequently, the Government further announced development of two more Powerloom Mega Clusters at Bhilwara (Rajasthan) in 2009-10 and at Ichalkaranji (Maharashtra) in 2012-13.

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