IIUS is in pursuance of an announcement made by minister of commerce and industry Arun Jaitley as part of the Exim Policy. The strategy, the release added, is to provide critical physical infrastructure in clusters transport, roads, water, common captive power generating units, common facilities centre, international marketing infrastructure and other physical infrastructure identified by the clusters required to become globally competitive.
The government has proposed to initially take up 20-35 clusters for development based on diagnostic study with emphasis on providing physical infrastructure in the clusters. Priority will be given to developing clusters, the release added, that concentrate on specific industries.
The criteria for selection of eligible activities in the clusters, based on detailed project report and studies, will be decided by an Apex committee in view of the financial requirements, the identified gaps and contribution from users, the industry and stakeholders.
Central assistance will be by way on a one-time grant-in-aid (not equity) to a special purpose vehicle (SPV) formed by the cluster associations for infrastructure development. The assistance will be restricted to 75 per cent, the release said, of the project cost subject to a ceiling of Rs 50 crore per cluster. The remaining 25 per cent will be financed by other stakeholders of the clusters, with a minimum industry contribution of 15 per cent of the total project cost. Central assistance will be restricted to 3 per cent of the total project cost.