IMPACTSHEET•SWITCH-ASIAPROJECTscaling up sustainable Development of msme clusters in inDia20 founDry units have alreaDy upgraDeD their technology in the first proJect year anD achieveD coke savings of 744 tons

occupational health anD safety benefits reacheD to 250 workers

Theprojectwillsupport500IndianMSMEsinthefoundrysectorinthestatesofPunjab,RajasthanandWestBengal.Theprojecthasbeendesignedalongfivemainactivities.

fostering sustainable proDuction through technical anD non-technical measures

Withintroductionoftechnicalandnon-technicalmeasures,theprojectwill improveenergyefficiency in500foundryenterprises and the project will also enable improvedworkplaceconditions in200foundryenterprises therebybenefitting2000workers.

builDing capacities of business membership organizations (bmos) for scpDuringthisentireprocess,businessmembership

organizations(BMO)areinvolvedasanintegralpartoftheprocess through 2 training of trainers programmes and 2training programmes each for BMO office bearers andexecutives.

introDucing anD facilitating aggregate sustainability reporting among cluster msmes

With the aggregate sustainability reporting the projectseekstoenabletheMSMEstomeasureandmonitortheirsustainability impacts, disclose them to stakeholders andimprove their access to potential business opportunitiesandpublicsupportschemes.

enhancing access of msmes to creDit through stronger linkages with financial institutions

Throughthisworkpackagetheprojectseekstostrengthenexisting financial products and credit delivery channelsto enable MSMEs upgrade their technology, develop newfinancialproductsandcreditdeliverychannelsandlink100MSMEs to FIs and public funding options for sustainableproduction.

unDertaking policy aDvocacy anD DisseminationThe project ensures that policy makers are

strengthened to develop guidelines, resources andimplementation instruments for adoption by MSMEs forsustainableproduction.

the challenge

obJective

The Indian economy owes a major part of its growthto the 26 million Micro, Small and Medium Enterprises(MSMEs) that provide employment to an estimated 60millionpeople. 70%oftheseMSMEsareestimatedtobeconcentratedinaround1100industrialand3500artisanalclusters. A sector mapping (2010) of industrial clusters,identified the foundry sector, having 5500 units in 47clusters, as an environmentally challenging and highlyenergyintensiveindustry.90%ofIndia’sfoundryenterprisesare micro and small enterprises, which use obsolete andinefficientmeltingtechnologies.Despiteseveralinitiativesundertakentoaddresstheproblems;theseinitiativeshavenotbeenabletoreachouttomorethan200enterprises.

The project Scaling up Sustainable Development of MSME Clusters in India willenable:

• Adoptionofsustainableenvironmentandsocialbusiness practicesacrossselectedfoundryMSMEclusters;• Up-scalingtheseeffortsthroughcapacitybuilding ofBMOs;• Introductionofaggregatereporting;• Establishmentoffinanciallinkages;• Supportcreatingaconducivepolicyenvironment.

target groupsTargetgroupsin4targetclustersare:

• 500MSMEsasdirectbeneficiariesand460as indirectbeneficiariesinthetargetclusters• About2,000contractualandpermanent employees(direct)and8000(indirect)• LocalBusinessMembershipOrganisations(BMO), BusinessDevelopmentServiceProviders(BDSP), fabricators,providingtechnicalsupportand/or publicfunding• Localpublicauthorities• Banks/FIs,nationalgovernmentinstitutions providingtechnicalsupportand/orpublicfunding

activities / strategy

IMPACTSHEET|SWITCH-Asiaproject Scaling up Sustainable Development of MSME Clusters in India

strategic interventions of the msme cluster proJect

scaling-up strategy

Thescaling-upandextensionoftheprojectoutcomesareensuredbyembeddingamarketbasedsystemattheclusterlevel. Supporting institutional structures and ongoingeffortsatpolicylevelstimulatenationalstakeholdersandinstitutionstore-designandre-focustheirinputstofosterSCP practices. Demonstrating effect and communicatingthe expected savings through workshops, focus groupdiscussion,one-to-onemeetings isanessentialapproach.By capacitating local service providers (BDSPs andfabricators)theprojectreachesouttomoreMSMEs.

capacitate bmos to coorDinate similar actions across their clusters: Scaling-up is being done by training of trainers

(ToT)intheclusterstatesbycapacitatingBMOstocoordinateSCP promotion across clusters thus institutionalizing SCPthrough intermediaries. Also training programmes willbe conducted for BMO executives and office bearers.AwardingthebestBMOadoptingSCPpractices,createsaspiritofexcellence.

voluntary sustainability reporting methoDology, instruments anD aggregate report:

The voluntary aggregate reporting system will provide asystemforself-promotionofSCPpracticesamongMSMEs.

enhancing access of msmes to creDit through stronger linkages with financial institutions:

MSMEs are being linked with financial institutions andgovernment schemes for access to finance. This is beingdonethroughfocussedgroupdiscussion,informingaboutrelevantgovernmentschemethroughbi-lateraldiscussions.Theprojecttargetsdevelopingnewfinancialproductandimproving the existing ones to meet the requirement ofMSMEs.

fostering an enabling policy environment: An intensive dialogue and engagement with

the local, regional and national public policy institutionsis being undertaken, seminars & workshops along withdevelopment of case studies, learning documents andanalytical papers for an informed debate and inputs forpolicydialogueamongstrelevantstakeholders.

Methodologies&CaseStudiesonresponsiblebusinesspractices

Policies&Programmesorientedtopromoteresponsiblebusinesspractices

DevelopmentInstitutionsadoptresponsiblebusinesspractices

RelevantfinancialinstrumentsfromBanks

LocalServiceProvidersprovidedesiredservices

msmes aDopt responsible

business practices

BMOcapacitatedonresponsiblebusinesspractices

ThroughdifferentactivitiestheprojectachievedthefollowingresultsinYear1:

500 msmes aDopt clean anD socially frienDly proDuction methoDs/technology, reDuce their carbon

footprint, anD benefit at least 2000 workers.4 cluster based project offices are set up in Ludhiana-Jalandhar, Jaipur and Howrah foundry clusters. 4 projectlaunch/sensitization workshops in clusters and onenational level launch workshop were conducted in NewDelhi.ThreediagnosticstudiesreportswerecompletedforLudhiana-Jalandhar, Jaipur and Howrah foundry clusters.Theprojectconductedexposurevisitof7foundryownersof Howrah and Ludhiana organized to Faridabad foundrycluster. Energy efficiency technology and better practiceswereadoptedby20foundryunitsleadingtocokesavingspotential of 744 tons per annum. The project introducedoccupational health and safety measures in 10 foundryunitsbenefittingaround250workersthroughactivitieslikehealthcamps,cleaningofshopfloors,introducingtrolleysforeasymovementofmaterialsetc.

results

50 bmos, selecteD bDsps anD resource organizations are Duly traineD to proviDe services effectively

163 government schemes has been identified fordevelopmentofMSMEsAlistof150BMOshasbeenpreparedandsurveyof95BMOsdoneforselectionof50BMOsfortrainings.TrainingmaterialforTOTshasbeencreatedand1ToTconductedwhere8instituteshadparticipated.4BMOsadoptedVoluntaryARmethodologyandMSMEsinoneclusterproduceanAggregateReportcontributingtotheirimprovedbusinessperformance,marketpositionandaccesstofunds.AninceptionvisitswasdoneinLudhiana-Jalandhar, Jaipur and Howrah foundry clusters. Threestakeholder consultations were n done with the foundryowners in Ludhiana, Jalandhar and Jaipur foundry clusterfordevelopingARmethodology

enabling access to financeThe project seeks to enable at least 100 clusterMSMEsaccessneworexistingcreditinstruments

and public funding options for sustainable production.Meetings were conducted with the local banks in theclustersandnonbankfinancialcompanies tounderstandtheirproductsandpossibilityofdesigningnewproductsformeetingtherequirementsoffoundryunits.2foundryunitshavebeenlinkedwithSIDBIforcreditfacilityinLudhiana-Jalandharcluster.

Dissemination anD outreach initiateDPolicy makers are strengthened to developguidelines, resources and implementation

instruments for adoption by MSMEs for inclusive andsustainable production. A communication and outreachplanoftheprojecthasbeendeveloped.AFacebookpageofthe project http://www.facebook.com/sustainableMSMEswas establishd. A project brochure was developed. A onetraining programme was conducted for 50 officials ofDistrict Industries Centre in Ludhiana-Jalandhar cluster. Aconceptnoteontheexistinggovernmentschemeforcreditfacilityhasbeenprepared.

There are around 26 million MSMEs in India located in 6,000 clusters manu-

facturing product belonging to 19 product categories. Out of these 19 sectors, 8 sectors have been identified as most energy intensive sectors in India located in around 148 clusters. Foundry is one of 11 sectors which have been identified as energy intensive. The project will reach 500 foundry units directly for technology up-gradation/better practices creating an estimated saving potential of 18,000 metric tons of coke per annum from the foundry sector alone. Similar initia-tives can also be undertaken in 148 clusters across 8 sub-sectors of ceramics, glassware, sponge iron, electroplating, paper industry, cement plants, brick

kilns etc. Scope exists for further up-scaling to the remaining 4000-5000 odd foundry units too.

Dr. Tamal SarkarProject Director

impact in numbers

• 139requestlettersreceived• 20foundryunitshaveupgradedtheirtechnologyoradoptedbettercupola operationalpracticesandachievedcokesavings

• Cokesavingsof744tonsperannumachieved• 1971,6CarbonEmissionReduction(intonnes)inthetimeframeofMay2012-April2013

• Benefitsprovidedto250workers

• 139requestLetterforimprovingenergyefficiency(no.offirms)inthetimeframeof May2012-April2013whereasonly20weretargeted• Numberoftrainings:Total8trainingprogrammesconductedforteam,ownersandworkers inYear1witharound130participantsasmentionedbelow: 1trainingprogrammeof5daysforEUteamonClusterDevelopmentProgrammeandthe deliverablesoftheprojectfor19participants 2technicaltrainingprogrammesforownersinLudhiana-JalandharandJaipurfoundrycluster 1technicaltrainingprogrammefor9fabricatorsinLudhiana-Jalandharcluster. 1trainingprogrammeforclusterteamonaggregatereporting 3trainingprogrammesforclusterteamonimplementingstrategy• FocusedGroupDiscussion(FGDs):Total18FGDsconductedforownersandworkersinYear1 witharound250participantsasmentionedbelow: 1FGDdoneforsensitizingownersinLudhiana-Jalandharclusterabouttheproject 2FGDsforsensitizingownersaboutthebenefitsonimprovingdesignthroughDesignClinic SchemeofGovernmentofIndia 1FGDsdonewith7OHSrelatedstakeholdersinLudhiana-Jalandharcluster 4FGDsdonefordiscussingrevenuegeneratingactivitiesinLudhiana-Jalandharcluster 2FGDsdoneforcollectinginformationforDiagnosticStudyReport 2FGDsformissionandvisionbuildingofCSBCinLudhiana 1FGDwith23workersexplainingthemthebenefitofadoptingOHSmeasures 5stakeholderconsultationsinLudhiana-JalandharandJaipurfoundryclusterfor discussingthemeasuringparametersforaggregatereporting• Numberofworkshops:Total5workshopshasbeenconductedforaround240participants asmentionedbelow: 5projectlaunchworkshopsdoneinLudhiana-Jalandhar,Jaipur,Howrahfoundryclusters

• Numberofworkshops:Total2workshopshasbeenconductedforaround100 participantsasmentionedbelow: 1trainingprogrammeconductedforofficialsofDistrictIndustriesCentreonCluster DevelopmentProgramme, ProjectLaunchworkshopdoneinNewDelhiwheredifferentpolicymakershadparticipated

IMPACTSHEET|SWITCH-Asiaproject Scaling up Sustainable Development of MSME Clusters in India

economic impact

environmental impact

social impact

engagement oftarget group

policy linkages

proJect contact

Dr.TamalSarkarUSOHouse,USORoadOffShaheedJeetSinghMargNewDelhi–110067India

tamal@msmefoundation.org+91-11-26602885/86

IndianInstituteofCorporateAffairs(IICA)

FoundationforMSMEClusters(FMC)

GlobalReportingInitiative(GRI)

UnitedNationsIndustrialDevelopmentOrganization(UNIDO)

proJect consortium

obJectivesTheprojectenablestheadoptionofsustainableenvironmentandsocialbusinesspracticesacrossselectedfoundryMSMEclusters.Besides,itaimstoscale-upthecapacityofbusinessmembershiporganization,introduceaggregatereporting,establishfinanciallinkagesandsupportcreatingaconducivepolicyenvironment.

Duration

proJect total buDgetProjectTotalBudget:€2,070,491(EUcontribution:80%)

2011 2012 2013 2014 2015 2016 2017

5/2012 – 10/2015

Legend

Eligible Asian countries for the SWITCH-Asia programme

Non-eligible Asian countries for the SWITCH-Asia Programme

Project implementation area

City Region Country

The boundaries shown on this map do not imply on the part of the European Union any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.

India

BatalaJalandhar

Jaipur

Howrah

DeutscheGesellschaftfuerInternationaleZusammenarbeit(GIZ)Germany