Cluster Development Programme

Cluster Development Programme 

Textiles Committee (TC) started its cluster development programme from the year 2001.  To implement CDP, the office of the Development Commissioner (O/o DCH) under the Ministry of Textiles (MoT), GoI has selected 20 clusters out of the 469 handloom clusters in the country as a pilot project.  TC was selected as one of the Implementing Agencies (IA) for three clusters on each in the Eastern, Northern & Southern state of India viz. Santhipur (Nadia) in West Bengal, Bijnore in Uttar Pradesh & Trichy in Tamil Nadu.


Based on experience with UNIDO methodology and the board guidelines given under IHCDS, TC had adopted the following steps for effective implementation .

  • Training to CDE:

The CDEs have undergone prescribed training in cluster development methodology.  They were trained in the subjects of Conducting diagnostic study, Entrepreneurship management, Strategic Management, Networking, Institution building, Capacity building, Competitiveness development etc.

  • Diagnostic Study (DS)

Followed by training and adequately equipped with working knowledge of the cluster and its dynamics, the CDE has identified the influential cluster actors/stakeholders.

  • Articulation of Demand (AoD)

Based on the outcome of the DS, various demands have come to light.  These were extensively discussed with the stakeholders & the cluster actors in articulating the feasible demands.  The demands were in the form of soft interventions and hard interventions.

  • Soft interventions:

Training & workshops, institution building & strengthening, Design & product development , market linkages through BSM & trade fair participations, exposure visits, credit linkages.

  • Hard interventions:

Development of Common Facility Centre (CFC) for product development, promotion of design studio, promotion of modern Dye House.

  • Action Plan Formulation (APF)

Based on AoD action plan was drafted and presented to the Apex Committee by CDE/IA for validation and for allocation of funds.  The Apex Committee deliberated on the action plan to provide overall strategic directions to the project and approved the projects, budgets and action plan submitted by the IAs.

  • Detailed Project Report (DPR)

In case of hard interventions like infrastructure development, DPRs were prepared.  The said DPRs include techno-economic feasibility, fund sharing pattern, convergence of schemes , outsourcing of services, acquisition of land etc.

  • Implementation of Action Plan:

Interventions soft as well as hard were implemented as per the action plan.


  • Review by APEX Committee:

It was headed by Secretary (Textiles).  The role of the Apex Committee was therefore, to provide overall strategic directions to the project, approve the projects, budgets and action plan submitted by IAs, periodical review and monitoring of the progress made by the IAs, amendment to the activites to the AP, if any etc.  This meeting took place once in a year to finalize the APs.

  • Review by O/o DCH:

Periodic review meeting has been organized to review the progress as per approved action plan by the  Apex Committee.

  • Review by CDCG:

With the objective of involving the cluster level stakeholders in the proves of cluster development and supporting the activities of the CDE, a cluster Development Coordination Group (CDCG) was formed at the cluster level.  This coordination group periodically meet to guide and remove bottleneck of field level implementation and also monitor the progress.

  • Review by IA:

A quarterly meeting of comprising of IA head, Director (CDP) and Chief Accounts Officer (CAO) reviewed the progress of CDE and provided the necessary logistic support and administrative guidenace for effective implementation.  Moreover, review also has been carried out at the Board level of IA by providing necessary project related approvals and also providing necessary funds.

  • Field Audits

National Resource Agency (NRA) has been assigned responsibility to conduct audits to check the level of compliance with AP or otherwise.  This helped in mid course correction and removing bottlenecks among cross function entities and achieving the objectives.