CFCs To Act As Boon for MSMEs: CII Applauds Haryana’s CFC Initiative, calls for Others States To Follow Suit

The Confederation of Indian Industry (CII) Welcoming the Haryana government's move to set up 31 Common Facility Centres (CFCs) under the Cluster Development Scheme for the growth of MSME sector. The CII has called it a crucial and much needed step towards strengthening the MSMEs, terming them as engines of growth and has also called other northern states to follow suit.

Jayant Davar, Chairman, Confederation of Indian Industry (CII), Northern Region & Co-Chairman & Managing Director, Sandhar Technologies Ltd said that this move will surely act as institutional support mechanism for the MSME sector which is facing severe slowdown. The CFCs will act as a platform for testing and establishing newer designs and prototypes as well. CII is of the view that CFCs under cluster format is imperative so as to make the processes and products more cost effective, marketable and self-sustainable. Other northern states like Punjab, HP and J &K etc should also come out with such initiatives and set up Incubation Centers (workspace) facilities at low rents and help the youth with some capital investments to motivate them to implement their new and bright ideas. With huge investment potential, MSMEs constitute the backbone of the manufacturing sector. Jayant Davar added that CII has been continuously working with the Centre and state governments to provide such facilities to the MSMEs so as to integrate them into global supply chain. The MSMEs and small component suppliers need such support in order to meet the global standards of competitiveness. This initiative will strengthen the collective action of the MSMEs in terms of technology up gradation, brand building and marketing, standardization of products and quality testing. Aimed at injecting growth and competitiveness into the micro, small and medium enterprises (MSMEs), the Haryana Government has decided to set up 31 Common Facility Centres (CFCs) in public-private-partnership (PPP) mode under the Cluster Development Scheme to give the sector a decisive push.

Raman Saluja, Chairman, CII NR Committee on MSMEs. shared that the CII has been continuously charting a roadmap for Indian MSMEs to become globally competitive both cost wise as well as quality wise. CII would support the government in setting up these centres to focus on adoption of automation and latest technologies. CII's 9 ongoing Clusters are already benefitting 61 companies.

Pikender Pal Singh, Regional Director, CII NR said that Manufacturing and MSMEs are the most critical contributors & vehicles for economic development, job creation and inclusive growth and north has tremendous potential to become the Manufacturing Hub of India. We just need to brand it as a preferred investment destination for Manufacturing. For this, CII has planned 2nd Invest North on 26-27 August 2013 at New Delhi. MSMEs constitute about 70% of CII's membership. We need to handhold MSMEs and provide them expert advice and guidance on aspects like finance, credit, taxation, government schemes and marketing support. Setting up of CFCs would go a long way in providing such support.