Jharkhand Industrial Area Development

Authority (JIADA)
Bokaro Region

Engineering Cluster
Under
MSME-CDP Program
In Bokaro
16 th January 2024
 What is MSME – CDP Scheme
Adopted by the Ministry of MSME, GoI. MSE-CDP scheme aims to assist the financial and
infrastructural needs of the MSME sector and accordingly it provides financial assistance
for the Common Facility centers, which also aids the clusters of MSE units. Further, the
scheme serves several bunches under the cluster development Programme, which helps to
increase the productivity and stability of the MSME sector and Utilizes the Cluster
Development approach to enhance productivity and competitiveness.

Objective
• Enhance sustainability, competitiveness, and growth of MSEs
• Address issues: technology, skills, quality, market access
• Build capacity through self-help groups, consortia, industry
associations
• Upgrade infrastructural facilities in Industrial Areas Clusters
• Set up CFC in industrial areas
• Promote green manufacturing for sustainable production
processes and products
 MSME Eco-System in
Bokaro

Industrial Overview Light Engineering Sector

• Possesses abundant coal reserves and is rich in
various minerals such as stone, sand, limestone,
and quartz
• 1496 + Registered Industrial Units
• 1600+ Total Industrial unit
• 1 Industrial Area
• Encompasses sub-sectors: medical instruments, process
control equip., castings, forgings, fasteners, bearings, steel
pipes, tubes.
• Generally employs medium to low-end tech.
• Needs Lower capital & tech. : accessible to new entrants.
• Labor-intensive, creating significant employ.

• More than 12 daily workers employed in each of • Providing inputs for heavy eng. & capital goods
small scale industries
Assistance from MSE- CDP scheme.
• CFC
• Infrastructure Development
• Marketing Hubs/Exhibition Center by Associations
• Thematic Intervention
• Support to State Innovation Cluster Development Program.
 A General Engineering cluster has been proposed under the MSE-CDP scheme, specially
focusing on three segments, which are Structural Fabricators, Foundry and Casting Units,
General and Machining Units. Key Specification of Proposed General Engineering Cluster.
• District boasts minerals like limestone and quartz with coal production.
Engineering • In Many PSUs, BSL is a crucial player.
• 358 units in General Eng. Cluster.
Cluster • Approx. 180 operational units.
• Employing 3,000-4,000 workers.
• Estimated turnover of around INR 500 Crore.
 Identified Cluster for CFC as Project
General Engineering
Cluster
• District boasts minerals like limestone,
quartz with coal prod.
• Many PSUs, BSL as crucial player.
• 358 units in General Eng. Cluster.
• Approx. 180 operational units.
• Employing 3,000-4,000 workers.
• Estimated turnover of around INR 500
Crore.
Proposal
Industrial Potential &
Vendor Dev.
• Majority of these units are engaged in the
fabrication of welded structures
• Bokaro offers significant potential for
vendor dev. in steel, cement, general
eng., chem., ceramics, machine tools,
electrical and electronics machinery, and
refractories.
Bokaro’s Favorable
Factors
• Bokaro’s natural resources, population
density, literacy rate, income levels in
favor
• Bokaro offers significant potential for
vendor dev. in sectors such as steel,
cement, Gen. Eng., chem., ceramics,
machine tools,

Machinery & Tech.
Constraints
• Absence of modern machinery.
• Dependency on outdated conventional
machines.
• Lack of essential machines for boring, 4-
axis milling, pressure die casting, CNC
turning etc.
• Production delays & substandard output.
Challenges being faced in the
identified cluster in Bokaro
Innovation & Resource
Limitations
• Lack of product dev. capacities.
• Absence of 3D printing and rapid
prototyping facilities.
• Hindrance to product diversification and
innovation.
• Limitations in stocking bulk quantities
of raw materials.
• Inability to purchase raw materials in
bulk, limiting cost savings.
Technological
Modernization Needs
• Dominance of low technology and lack
of technological innovation.
• Increasing demand for automatic &
semi-automatic production systems.
• Need for modernization and adoption of
the latest machinery and technology.
Low Skilled Manpower and
Market Access
• Lack of skilled manpower leading to
wastage, longer production times, low
accuracy, and low productivity.
• Limited access to markets due to small
size and low prod. capacity.
• Limited technological capacities
preventing diversification and restricting
market access.
 Common challenges of units in GEC
In January 2023, a diagnostic study was conducted in Bokaro to assess the
existing business processes, identify gaps, and understand the cluster's
requirements. Followings were the key findings:

Difficulty in obtaining quality

Lack of NABL-accredited third-
certifications from OEMs
party certification bodies in
Bokaro

Many units relying on external

providers, leading to high costs & Costly and time-
prod. delays consuming process for
product approvals

Need for modern

machining facilities within
the cluster

In order to eradicate or control the above-mentioned common

challenges being faced by MSMEs in the region JIADA, Bokaro
has submitted its DPR for the Establishment of CFC under the
MSME CDP Scheme. CFC intends to serve the General
Engineering Cluster and cover Structural Fabricators,
Foundry and Casting Units, and Machining sectors.
Above-mentioned
 CFC Offerings Aligned with
MSME Needs
Tech. for common use
Offering Range of services: Precision machining, plasma cutting, welding,
dynamic balancing, & stress relief of welded structures.

Providing physical & chemical testing, 3D printing facilities for MSEs.

Quality Assurance Services

Ensuring compliance with stringent quality standards, addressing rejection
issues and Continuous quality improvement programs to adapt to evolving
standards.

Certification Support
Assistance in obtaining NABL certification, reducing financial losses from
rejections.
Streamlined certification procedures, minimizing time & resource investment ..

Comprehensive Testing Facilities

State-of-the-art testing facilities within Bokaro, eliminating the need for external
services.
Testing services at subsidized rates, minimizing financial burdens on MSMEs .

Skilled Manpower Solutions

Local availability of skilled manpower at cost-effective rates.
Skill training for local youths, creating employment opportunities within the region .
 Cluster Brief

Project Details
General Engineering Cluster (Structural Fabricators, Foundry and Casting
Units, and Machining Units) with JIDCO, GoJH as Implementing Agency

TFO & Financial Contri. SPV; 0.54 4 acres of

land worth
150 lakhs
TFO: Rs. 10 crores

Project Duration
18 Months
Grant in
Aid from
GOI; 7.99

Financial Contribution in TFO in Rs. Crore

 Key Project Components &
Facilities
4 acres of Rs. 150 Lakh

7200 sq. ft built up area

Rs. 53.76 lakh as cost of building

Rs. 659.04 lakhs for Plants & Machinery

Rs. 21.54 lakh for Office Equipment's

Rs. 110.46 Lakhs as other Expenses

Rs. 998.78 lakh as TFO

 Roles & Responsibilities of State,
Central Govt & SPV

Roles of State Govt. Roles of Central Govt. Roles of SPV

• Policy Formulation • Policy Framework • Project Implementation

• Cluster Identification
• Infrastructure Development
• Financial Support
• Skill Development
• Coordination
• Monitoring and Evaluation
• Financial Assistance
• Capacity Building
• Technology Upgradation
• Research and Development
• Regulatory Framework
• Monitoring and Evaluation
• Resource Mobilization
• Stakeholder Coordination
• Infrastructure Development
• Skill Development Programs
• Financial Management
• Reporting
Activities – Till now….
Prepared the Detailed Project
Report for the tool room.

Mobilized 49.9 LKH money

contribution in the project from
SPV.
.

Mobilization and Meetings with

SPV

Fin Assessment and approval of

projects from SIDBI.

Formed a company in 2022 with

BODs under section 8 of ICA
20000 direct and Way forward
indirect employment
Connecting industries with
Amritsar – Kolkata Industrial
Corridor.

More Focus, Particularly in

Manufacturing, Agro
Processing, Service, and
Export – Oriented units

State of the Art Tool Room

 Before vs After

Before Intervention of CFC After Intervention of CFC

Units Units
77 units. 125 units.

Product Product
Poor quality Products with no granulation and Feed in the form of granules and pellets.
pelleting facility.

Market Market
Presence only in local and regional markets. Products are marketable in urban and National
markets.

Employment Employment
450 direct employment and 200 indirect 600 direct employment and 3000 indirect
employment. employment.
 Before vs After
Before Intervention of CFC After Intervention of CFC

Exporting Unit Exporting Unit

Nil. 5 units.

Skill Skill
Traditional and semi-skilled labour Industrial exposure and highly skilled labour.

Wastage of Raw Material Wastage of Raw Material

12 % raw material is wasted. Zero wastage of Raw Material.

Quality Quality
Low production quality with no certification Quality products with international export
and standards standards and certification from agencies.
Thank You
F o r Yo u r A t t e n t i o n