Nearly Rs 10 million spent on cluster studies: scheme aimed at reviving industrial units scrapped

Despite spending around Rs 10 million on cluster studies, Sindh government has deleted 'Modernisation/ Rehabilitation and establishment of Industrial units in rural Sindh' scheme from its Annual Development Programme (ADP) for 2012-13, Business Recorder learnt on Wednesday.
PPP-led provincial government had tabled Sindh Budget for the next fiscal, in the provincial assembly with an ADP of Rs 231 billion. The provincial budget is under debate in the assembly. Sources said that the Planning and Development (P&D) department had initially purposed this scheme in its ADP for 2008-09.
As much as Rs 5 million was allocated for this scheme in the first Fiscal Year. Later, another Rs 5 million were allocated in FY 2009-10, for cluster studies for the scheme, sources said. Citing the scheme's documentation, the sources said that the Board of Investment (BOI), Planning and Development department and Small and Medium Enterprises Development Authority (Smeda) was to establish agro-based industrial units of vegetables and fruits, including mangoes, guavas, red chilies, rice milling and dates in various districts.
Processing units of various vegetables and fruits were part of the said project, sources said. A number of agro-based cluster studies were commissioned to four private consultant firms to map these clusters, identify areas of improvement, propose agro-based industrial projects, share this vision with cluster stakeholders to promote public-private partnership and develop comprehensive plans to effectively establish and run these projects.
A private firm submitted its feasibility report regarding setting up a tomato paste manufacturing unit, vegetable dehydration unit and canned vegetable unit to the Planning and Development Department, sources added. Later, the Sindh government started work for establishing the units in Matiyari district as was recommended by the report. The P&D department urged industries and agriculture department to make a PC-1 of the tomato paste unit, vegetable dehydration and canned vegetable units, sources said.
According to the feasibility report obtained by Business Recorder, vegetables processing units should be established on commercial land near the main high way in Matiyari district because of availability of raw material, land and labour, technical and operational resources and access to major markets and export hubs.
Food processing is an emerging industry in the country. This industry accounts for 27 percent of the total value-added production and 16 percent of the total employment in the manufacturing sector. This industry's growth may prove to be quite important for the growth of Pakistan's agricultural as well as manufacturing sectors. This is mainly because of the export potential of processed food products, the report mentioned.