Bhubaneswar, June 8: Associated Chambers of Commerce and Industry of India (Assocham) has proposed setting up of 16 new e-clusters on public-private-partnership model in the state in a bid to give fillip to the small and medium sector.

“We have suggested setting up of 16 new clusters in the state each accommodating about 1,000 units and providing direct and indirect employment to about four lakh people,” said Assocham secretary general, D.S. Rawat here today.

An e-cluster would not only interlink the units among themselves but would also be linked to all the existing e-clusters in the country numbering about 6,500.

This would help industrial units to have better access to the market and technology, which in turn would help maximise their production.

Rawat said there were only 26 e-clusters in the state recognised by the central government as against the total number of 6,500 in the country.

“We feel that there is a dire need to increase the number of such clusters in the state and expand the size of existing clusters, which have enormous potential to reach the next level of growth,” he said.

The 16 new clusters proposed by Assocham are Palasa (cashew), Buditi (brass and bell metal), Baripada (sabai grass), Dhenkanal (powerloom), Puri and Bhadrak (rice mills), Dhamara and Basudevpur (ice plant), Chandbali, Tihidi and Basudevpur (flattened rice), Bhandaripokhari and Dhamara (honey), Betaligaon, Olaga and Dhusuri (wood carving).

“Total funds required to provide basic and essential infrastructure to these clusters would be about Rs 480crore. Once functional, it will contribute additional 10 per cent revenues per annum to the exchequer, help in inclusive growth and simultaneously lead to upgradation of existing clusters,” said Rawat.

To push forward its initiative, Assocham is holding a day-long conclave on June 24 in Bhubaneswar, which is scheduled to be inaugurated by chief minister Naveen Patnaik.

Welcoming the Assocham’s initiative, state industries minister, Raghunath Mohanty said: “It will definitely boost the growth of MSME (micro, small and medium enterprises) sector, which one of our focus areas. The state government will provide all support in this regard.”