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STI Policy – Framework and Operationalisation in MSMEs Mukesh Gulati Executive Director Foundation for MSME Clusters.

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Presentation on theme: "STI Policy – Framework and Operationalisation in MSMEs Mukesh Gulati Executive Director Foundation for MSME Clusters."— Presentation transcript:

1 STI Policy – Framework and Operationalisation in MSMEs Mukesh Gulati Executive Director Foundation for MSME Clusters

2 Huge presence of MSMEs in Clusters Type of Units Number of Enterprises (million) 2006-07 Per cent of Enterprises Manufacturing MSMEs11.5100 Manufacturing MSMEs in Clusters 7.363 Manufacturing micro enterprises in cluster 6.960 Manufacturing micro- micro enterprises in cluster 4.943

3 Ranking of Sectors as per Contribution of MSMEs SL NoSector- CensusEmploymentTurnoverGVAExportTotalAverage 1 Food Products & Beverages 111251.25 2Textiles222392.25 3Wearing Apparel3761174.25 4 Fabricated Metal Products 4546194.75 5 Chemicals & Chemical Products 7435194.75 6Machinery & Equipment6657246 7Basic Metals93710297.25 8 Other Non-metallic Mineral Products 51099338.25 Source: Tamal Sarkar, et.al. IAMR Study, 2012

4 Dimensions of Cluster: Thematic Challenges SNThematic AreaClusters (Products Only) 1Energy Intensive Castings & Forging, Steel re- rolling, Foundry, Ceramics, Brick 2Pollution Intensive Leather, Dyes, Chemicals, Plastics, Electroplating, Fly Ash, Glass, Detergents, Dry Cells 3 Socially not responsible Safety Matches, Textiles, Leather 4

5 Examples of Technology Related Problems MSME face Electronic Weighing based Fruit Sorting System Plastic Waste Sorting System for Five Types of Plastics Biodegradable Plastics based on Natural materials Composite Materials for Sports Goods An apparatus and technology for the manufacture of fused welding fluxes Self Guided – Electro gas Welding Machine – Indigenously developed A process of forward and backward feeding of cold wire addition technique in submerged Arc welding Multiple Panel Cutting technology Multiple colour Printing technology

6 Foundries – Indian Scenario Total number of foundries 6,000 clustered in 47 locations 95% MSME Units, only 5% large Prevalence of traditional and obsolete technology leading to higher energy consumption Poor melting technology in the foundry enterprises leading to high consumption of coke and higher carbon emissions. Problems of solid waste disposal Issues relating to health and safety of workers Technology up-gradation can save nearly 75,000 tonnes coke per annum Improved practices of Occupational Health and Safety not only help improve the work environment, but also ensure direct business gains.

7 The Foundry Sector Molten Metal Pouring in a bucket Molten Metal to Moulds Mould Preparation Casted and Machined Parts Process

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9  Job Hazard Watch this man.. Hand - eye Under Factories Act 1948, foundries have been classified as Hazardous Industry

10  Pressure of Slag out  Metal spark S..P..A..R..K S..P..R..E.A..D

11  Availability  Fitness  Accessibility  Correctness

12 Small activities providing low handing fruits Business Cases Less Business Cases Non Business Cases Institutionalization

13 Business Case….. Total no of workers required: 07 (2 for filling the basket, 3 for loading pig iron and scrap) Total no of workers required: 03 (1 for making the small size of scrap, 1 for loading material in the charger, 1 as helper) Drudgery chances also minimized Reduction in Labour Cost; Increased Savings

14 Business Case….. Commercial use of Waste Slag- waste product for Foundry Industry Slag utilized as raw material for Brick making

15 Business Case….. Material Movement Manual Material Handling Material movement through trolleys Introduction of single Trolley includes an expenditure of Rs 2,000 and saved average 2 man days cost on daily basis i.e. Rs 800

16 Implementation Framework 1.Many MSMEs are aware of symptoms but not remedy & location Step 1: Educate Step 2: Identify exact technology needs 2.Most MSMEs not well versed with process of Technology Transfer Step 3: Identify firms with similar needs Step 4: Create a network of like-minded firms 3.S&T communities do not have outreach to industries Step 5: Identify the Supplier/ Provider Step 6: Negotiate with supplier/ Provider Step 7: Organise service providers for transfer process 4.Marketability is a major challenge in front of S&T communities – Step 8: Business Case Development & Presentation 5.Enterprises are excited given the solution but require handhold support Step 9: Engage a Linker between Provider & Seekers 6.Enterprises need support for non-technology areas viz. Financing, Labour training etc. Step 10: Role of facilitating agency

17 THANK YOU


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