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Foundation for MSME Clusters (FMC) (ISO 9001:2008 certified Organisation) SMEs & Informal Sector Green Strategy Mukesh Gulati Foundation for MSME Clusters New Delhi
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
SMEs & Informal Sector
Green Strategy
Mukesh Gulati
Foundation for MSME Clusters
New Delhi
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
MSMEs in India Contribute
Significantly towards
The Hind Side: MSMEs also
Contribute towards
Exports
Output
Employment
Increased Pollution
Excessive Energy
Consumption
Adverse social implications
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
11 Sectors identified as Energy Intensive out of 47 MSME Sectors
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Brick Kiln
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Foundry
Sponge iron
Leather tanning
Textiles
Dyes and chemicals
Electroplating
Brick kilns
Ceramics
Glass and glassware
Cement
Pulp and paper
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
One of The Identified
Energy Intensive
Sub-Sector: Foundry
India: 5,500 foundries: Clustered in 47 clusters ranging
from 30-500 units.
India is placed globally at no. 3 after China followed and
United States.(46,200,000-China, 11,997,430-US,
10,021,000-Ind)
85% of the foundry units are small; 15% are
medium/large units
Northern India has about 1,100 foundry units
Energy cost is 30% of production cost (70% in melting)
through coke, furnace oil, natural gas and electricity
Foundry Industry Scenario
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Agra
JalandharGoraya Batala
Kaithal
Faridabad
Samalkha
Jaipur
Rajkot
Ahmedabad
Vadodara
KolhapurSholapur
SangliSatara
Aurangabad
Diamond Harbour Road
Calcutta
Cuttack
Belgaum
Shimoga
Mysore Bangalore
Tiruchirapalli
CoimbatoreDindigul
IndoreDewas
Narwana
Bhiwadi
Kirloskarvadi Pune
Kharagpore
UttarparaHowrah
Liluah
Nellore Gudur
Renigunta
Sholingur
Ennore
Chennai
Sriperumbudur Foundry Cluster
Foundry units with capacity – 50,000 tones per year and above
Ponneri
Nagpur
Jamshedpur
Ranchi
Gurgaon
Bhopal
Raipur
Hyderabad
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Conventional single blast cupola Divided Blast Cupola
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Foundry Process
Pouring metal into mouldsCarrying molten metal
Final Product
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Cumulative Number of Enterprises Intervened for Technology Diffusion
300
500520
628
781
981
0
100
200
300
400
500
600
700
800
900
1000
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
A Question arises ……
Why does it not self spread when business case exists?
Reasons
Awareness Barrier
• Weak associations
• Untrained fabricators
Investment barrier
• Bank Linkages
• Costly technology
Technology acceptanc
e barrier
• No incentive for contractual labor
Lac
k o
f c
on
sulta
nts
w
illin
g t
o w
ork
w
ith
MSM
Es
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Small Changes in Practices Leads to Big Outcomes
Measurements
Skills
Local Team
Local Fabricators
BMOs to promote
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
MSMEs are willing to adopt
OHS and Social Measures -
Business to Non Business Cases
Small activities providing low hanging fruits
Business Cases
Less Business Cases
Non Business CasesInstitutionalization
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Design and Implement Integrated
National Programmes: Sectoral Focus
Design and Cluster Focus
Implementation
Strengthening Policy
through Convergence and
Coordination
Building capacities of Existing and
New BMOs and all relevant local
stakeholders to empower their
members to implement Sustainable
Production
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)Multi Stakeholder
Collaboration
Sustainable Development of MSMEs in India
Funding
• Government
• CSR Funds
Implementation
• Development Organizations
Support &Outreach
• BMOs and Local BDS
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
What can be done in these enterprises in Clusters?
Better Designed Products: Product innovation is
very limited across most sub-sectors
Improved production methods: Several pilot
initiatives in the past that need to be up scaled
Waste Management: Mainly undertaken as end-of-
pipe treatment under the pressure of regulatory
authorities, media and community
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Way forward - Up scaling
National study of industrial symbiosis needed at cluster level
Create new
financial products
and ensure reach
out with innovative
channels
Foundation for MSME Clusters (FMC)(ISO 9001:2008 certified Organisation)
Thank You
