Cluster Development

IL&FS has established an exclusive business unit called the Cluster Development Initiative to address the infrastructure, market access, technology and finance requirements of SMEs through development of modern industrial clusters in textiles, pharmaceutical, leather, light engineering, agro/food processing, crafts and other industry verticals across the country. IL&FS has also been appointed as Project Management Consultant by GoI to set up 25 integrated textile park clusters in the country

In particular, it has spearheaded the implementation of the Tirupur Area Development Program where it has worked with the Tirupur Exporters Association, the Government agencies and other stakeholders, in addressing key infrastructure bottlenecks

The Indian manufacturing industry is characterised by the predominance of Small and Medium Enterprises (SMEs) located in clearly identifiable sector / product specific geographic clusters. United Nations Industrial Development Organisation (UNIDO) estimates that there are at least 388 such important industrial clusters in the country covering the sectors such as textiles, leather etc, which contribute a significant share of the country’s employment and exports

A singular constraint faced by the SMEs in these clusters has been lack of adequate and quality infrastructure, which is adversely affecting industrial competitiveness. It is in this context that IL&FS has established an exclusive business unit namely, Cluster Development Initiative (CDI), with the primary objective of addressing the critical infrastructure problems in SME industrial clusters on a commercially sustainable basis

IL&FS, through Cluster Development Initiative, provides a broad range of turnkey services. The scope of services to be provided would include, inter alia:


  • Developing appropriate institutional and financial structures for efficient implementation of the Project
  • Creating appropriate contractual structures for layout, design, detailed engineering, preparation of cost estimates of the infrastructure facilities, bid documents, selection and appointment of contractors / consulting firms for specific activities to ensure smooth implementation of the project
  • Raising funding for implementation either as public financed project/s or leveraging the budgetary resources of the authority and government to attract private capital in infrastructure project/s
  • Ensuring efficient utilisation of these funds to create good quality infrastructure assets without cost and time overruns
  • Assisting to obtain reimbursement of Project specific funds and / or grants sanctioned by Central and State Governments
  • Establishing sustainable systems and contractual structures for effective operation and maintenance of the Project
Projects in this Sector
  • Agro & Food Processing
  • Artisan Clusters
  • Cold Chain, Value Addition and Preservation Infrastructure
  • Development AYUSH Enterprises
  • Howrah Foundry Cluster
  • Industrial Clusters Infrastructure
  • Ludhiana Textile Cluster
  • Mega Food Parks Scheme
  • Skills and Employment in Apparel Manufacturing (SEAM)
  • Tripura Bamboo Project
  • Vision Document Implementation in Bihar