Govt to spend Rs 4.5k Cr to set up 13 MSME clusters in Vidarbha: Nitin Gadkari
The minister said the aim of these clusters is providing employment in rural areas and to create the market for local products.
Union Minister for MSMEs Nitin Gadkari said as many as 13 clusters will be formed in rural areas of Vidarbha, a region in Maharashtra, according to media reports.
"The aim of these clusters is providing employment in rural areas. We will create market for local products and spend Rs 4,500 crore on these clusters," he said.
Earlier in June 2019, Gadkari said the ban on entry of corporates and private players in the MSME sector has been lifted to pave way for the formation of 700 clusters in order to reduce dependence on imports as well as for job creation.
He also urged Indian industry to join hands in bringing innovative ways of financing, adding that there was no "trust deficit" between industry and the government, which has been constantly doing away with "red-tapism".
Defining MSME as a sector with huge growth and employment potential, the minister said, "Private sector can work with us and I need your support. We have sought proposals from the industry for clusters.”
Speaking at a silver jubilee function of Mahila Griha Udyog’s Lijjat Papad Limited, Gadkari also promised to increase the share of the sector in industrial growth to 49 percent from the present 29 percent.
He said the Central government and his ministry were taking several steps to achieve the target.
"Over the years Lijjat Papad has not emphasised on increasing production and profit, but on providing quality product to consumers. This group is therefore not doing business but it is a type of social entrepreneurship,” he added.
The minister added that despite the economy is not doing well, and unemployment being a problem, Lijjat Group is providing livelihood to over 50,000 women.
"The turnover of the group is over Rs 1,500 crore. It is a matter of pride that Lijjat exports products worth Rs 75 crore every year,” said the minister, who then appealed to strengthen the women who were working for the group.
In October 2019, Gadkari had said plans were afoot to create as many as 13 clusters at village level to set-up solar powered weaving units.
