Boost for Artisans in Rajasthan

• 22 Apr 2024

Why in News?

The Rajasthan government is planning to implement an ‘integrated cluster development scheme’, which will help boost the productivity and quality of handicrafts, handlooms, and Micro, Small & Medium Enterprises (MSME) sectors.

• A draft had already been prepared and suggestions were being sought from stakeholders.

Key Points

• Cluster development schemes are being run by various central government ministries such as MSME, textiles, food processing, information and technology, and commerce and industry to support MSMEs.
• According to the draft policy, there are four main components of the scheme:
  • The key component includes support for artisans, craftsmen, and weavers for undertaking soft interventions for capacity building, operation of the raw material bank for easy availability of resources, and market development through e-commerce platforms.
  • The other is support for MSME clusters for establishing Common Facility Centres (CFCs) with assistance from the state government for projects of up to Rs 5 crore.
  • Another component notes infrastructure development for existing clusters in non-Rajasthan State Industrial Development and Investment Corporation (RIICO) industrial areas and for greenfield clusters in non-RIICO industrial areas.
• The draft policy says that for implementation of the cluster development project related to artisans, craftsmen and weavers, a Special Purpose Vehicle (SPV) will be constituted as a partnership firm and/or a trust or society or co-operative society or company or producer company etc. with at least ten artisans, craftsmen and/or weavers, having registered artisan ID card. Artisans, craftsmen, and weavers practicing their trade in Rajasthan will be eligible to be part of the SPV.

Rajasthan State Industrial Development and Investment Corporation (RIICO)

• It is a premier agency of the Government of Rajasthan that has played an important role in the industrial development of Rajasthan, it was formed in 1980.
• A Government enterprise established under Companies Act, 1956 on 28^th March 1969 as Rajasthan State Industrial & Mineral Development Corporation (RSIMDC) was divided into two entities on 1st January 1980:
  • Rajasthan State Industrial Development & Investment Corporation Limited (RIICO)
  • Rajasthan State Mineral Development Corporation (RSMDC)