(Financed by the Japan Fund for Poverty Reduction)

Technical Assistance Report Project Number: 49276-001 Capacity Development Technical Assistance (CDTA) December 2015 India: Supporting Rajasthan s Productive Clusters in the Delhi Mumbai Industrial Corridor (Financed by the Japan Fund for Poverty Reduction) This document is being disclosed to the public in accordance with ADB's Public Communications Policy 2011. The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature.

CURRENCY EQUIVALENTS (as of 13 November 2015) Currency unit Indian rupee/s (Re/Rs) Re1.00 = $66.10 $1.00 = Rs0.0151 ABBREVIATIONS ADB Asian Development Bank DMIC Delhi Mumbai Industrial Corridor GDP gross domestic product TA technical assistance NOTES (i) The fiscal year (FY) of the Government of India and its agencies ends on 31 March. FY before a calendar year denotes the year in which the fiscal year begins, e.g., FY2013 begins on 01 April 2013 and ends on 31 March 2014. (ii) In this report, $ refers to US dollars Vice-President W. Zhang, Operations 1 Director General H. Kim, South Asia Department (SARD) Country Director M. Kho, India Resident Mission, SARD Team leader Team member J. Boestel, Principal Economist, SARD K. Gupta, Project Officer, SARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page CAPACITY DEVELOPMENT TECHNICAL ASSISTANCE AT A GLANCE I. INTRODUCTION 1 II. ISSUES 1 III. THE CAPACITY DEVELOPMENT TECHNICAL ASSISTANCE 2 A. Impact and Outcome 2 B. Methodology and Key Activities 2 C. Cost and Financing 3 D. Implementation Arrangements 3 IV. THE PRESIDENT'S DECISION 4 APPENDIXES 1. Design and Monitoring Framework 5 2. Cost Estimates and Financing Plan 8 3. Outline Terms of Reference for Consultants 9

Project Classification Information Status: Complete CAPACITY DEVELOPMENT TECHNICAL ASSISTANCE AT A GLANCE 1. Basic Data Project Number: 49276-001 Project Name Supporting Rajasthan's Productive Department SARD/INRM Clusters in the Delhi Mumbai /Division Industrial Corridor Country India Executing Agency Department of Industries, Government of Rajasthan 2. Sector Subsector(s) Financing ($ million) Industry and trade Industry and trade sector development 0.25 Public sector Public administration 0.25 management Transport Transport policies and institutional development 0.25 Water and other urban infrastructure and services Urban policy, institutional and capacity development 0.25 Total 1.00 3. Strategic Agenda Subcomponents Climate Change Information Inclusive economic Pillar 1: Economic opportunities, Climate Change impact on the growth (IEG) including jobs, created and expanded Project Low 4. Drivers of Change Components Gender Equity and Mainstreaming Governance and Public financial governance Some gender elements (SGE) capacity development (GCD) Partnerships (PAR) Bilateral institutions (not client government) Official cofinancing Private sector development (PSD) Conducive policy and institutional environment 5. Poverty Targeting Location Impact Project directly targets No Not Applicable poverty 6. TA Category: B 7. Safeguard Categorization Not Applicable 8. Financing Modality and Sources Amount ($ million) ADB 0.00 None 0.00 Cofinancing 1.00 Japan Fund for Poverty Reduction 1.00 Counterpart 0.01 Government 0.01 Total 1.01 9. Effective Development Cooperation Use of country procurement systems Use of country public financial management systems Qq No No Source: Asian Development Bank This document must only be generated in eops. 09072015172324687078 Generated Date: 15-Dec-2015 18:27:50 PM

I. INTRODUCTION 1. This technical assistance (TA) is provided by the Asian Development Bank (ADB) in response to a request from the Government of India for help in developing an industrial corridor and implementing reforms to improve Rajasthan s ease of doing business ranking. 1 Consultation missions were fielded and the Government of India and ADB reached an agreement on the TA design and implementation arrangements. The design and monitoring framework is in Appendix 1. II. ISSUES 2. The revival of manufacturing is a key priority of the Government of India, as reflected in the recent Make in India initiative portraying the sector as the engine of long-term growth. Indian manufacturing has long stagnated at low levels, accounting for around 17.2% of gross domestic product (GDP) in FY2013 and 12.6% of employment in 2011/12. 2 Government of India aims to transform the sector by increasing its GDP share to 25% and creating 100 million jobs by 2022. 3 3. Rajasthan is one of India s lagging states, with a per capita income of about $1,200 in FY2013, below the national average of $1,500. 4 Similarly, the performance of manufacturing sector in the state has been weaker than at the country with a GDP share of around 10% in FY2013 and an annual growth rate of less than 2% since FY2012, below the national average of 6.2%. The sector employs 9% of Rajasthan s workforce, far below the national average of 12.6%. With a large number of young people entering the labor force every year and a low skills base, job creation has become a top priority of the Government of Rajasthan (the government). 5 4. The Make in India initiative and the associated Delhi Mumbai Industrial Corridor (DMIC) present major development opportunities for Rajasthan, especially with regard to job creation. The DMIC is India's most ambitious infrastructure program aimed at developing new industrial cities as smart cities. This is intended to expand India's manufacturing and services base and develop the corridor as a "Global Manufacturing and Trading Hub". The DMIC will significantly boost planned urbanization in the country, with manufacturing as the key driver. 5. Rajasthan is a major DMIC partner as 60% of its area falls within the project influence area and 39% of the dedicated freight corridor passes through the state. Rajasthan s prospects for industrial development are also good due to its proximity to the National Capital Region; abundance of land; and substantial resources of minerals, oil, and gas. 6. To supplement the envisioned infrastructure development, the government has implemented several initiatives since 2013 to improve the business environment and attract much-needed private sector investment in the manufacturing and services sectors. 6 1 The vice president operations 1 approved the TA concept paper on 21 July 2015.The TA first appeared in the business opportunities section of ADB s website on 4 September 2015. 2 Government of India, Ministry of Statistics and Programme Implementation, Central Statistical Office. FY2013 refers to fiscal year 2013-14, starting on 1 April 2013 and ending on 31 March 2014. 2011/12 refers to period starting from 1 July 2011 and ending on 30 June 2012. 3 Government of India, Ministry of Commerce and Industry. 2011. National Manufacturing Policy. New Delhi. 4 The state is also lagging on various socioeconomic indicators compared with the national averages, including rates of literacy, net school enrollment, and infant and maternal mortality. 5 About 55% of Rajasthan s population is below the age of 24, and around 25 million people will enter the workforce over the next 20 years. 6 These initiatives include skills development and employability (e.g., the Rajasthan Mission on Livelihoods); investment promotion (tax incentives, single window clearance, dedicated industrial areas for Japanese

2 Consequently, Rajasthan was ranked sixth in a recent ease of doing business ranking of Indian states released by the Department of Industrial Policy and Promotion in September 2015. However, the government is aware that there is more to be done. Last-mile connectivity problems continue to reduce the impact of reforms. Also, it is crucial to continue strengthening of the regulatory environment and simplifying business processes, especially given increased interstate competition for investments. 7. Rajasthan can improve its domestic and international competitiveness by focusing on both existing and potential productive industry clusters. A productive industry cluster is a group of firms closely linked by common product markets, labor pools, similar technologies, supply chains, infrastructure, technical colleges, and/or other economic ties. This cluster concept goes beyond the traditional concept of a cluster as a horizontal network of firms operating in the same end-product market within the same industry group. 7 Such a productive cluster development approach is important as the firms and organizations involved in clusters can synergize and leverage economic advantages from shared access to information and knowledge networks, supply and distribution chains, markets and marketing intelligence, competencies, infrastructure, low transaction and communication cost, and resources in a specific locality, thus leading to overall improved competitiveness and productivity of industry and state at large. III. THE CAPACITY DEVELOPMENT TECHNICAL ASSISTANCE A. Impact and Outcome 8. The TA impact will be a more investment-friendly climate, improved competitiveness of industrial clusters in the Delhi Mumbai Industrial Corridor, and an increased employment rate in Rajasthan, in alignment with the state s Twelfth Five-Year Plan, 2012 2017. 8 The outcome will be strengthened government capacity to develop productive clusters and the economic corridor. B. Methodology and Key Activities 9. The TA will include two major outputs: (i) Cluster development plan for accelerated industrial development in Rajasthan completed. This output will identify (i) productive clusters in Rajasthan; (ii) an infrastructure and regulatory strategy to increase the competitiveness of these clusters; and (iii) a set of priority projects, particularly last-mile connectivity projects, to unlock the potential of the identified clusters. 9 The TA will also suggest improvements to Rajasthan s regulatory business environment. The state s businesses need to be able to (i) access India s vast domestic market more efficiently and cheaply, and (ii) link up with global value chains to create more jobs and expand operations. Improved processes and regulations are necessary to remove existing bottlenecks and ensure the continued improvement of Rajasthan s investment climate. investment, and the DMIC); land acquisition (land pooling); and labor reforms (laying off workers, reducing the number of trade unions, reducing the compliance burden, and implementing the apprenticeship act). 7 Enright and Roberts. 2001. Regional Clustering in Australia. Australian Journal of Management. 26, page-66. 8 Planning Department, Government of Rajasthan. 2012. Twelfth Five-Year Plan, 2012 2017. Jaipur.

3 (ii) Capacity building on the design, development, and management of productive clusters and economic corridors implemented. The TA will strengthen the capacity of relevant government agencies to sustainably improve business and regulatory changes (which often require many departments to coordinate closely), and enhance harmonization and information-sharing across departments and divisions. The management, planning, and maintenance of infrastructure also require special skills and increased information sharing. Workshops will be held to increase knowledge about ongoing activities (such as comprehensive urban planning), the relevance of industrial clusters to regional development, and the importance of synchronizing the implementation of industrial and urban policy reforms and programs. Workshops and capacitybuilding programs will be organized for government agencies to increase awareness of the significance of productive clusters and economic corridors in order to spur industrial development, economic growth, and job creation. Training modules on ease of doing business, with perspectives from other states, will also be designed. 10. Key risks include (i) inadequate government ownership within the state to implement regulatory reforms and/or invest in infrastructure within the identified productive clusters; (ii) delayed completion of the cluster development plan due to difficulties building consensus among the numerous stakeholders in the planned industrialization project; and (iii) constraints related to social and/or environmental aspects, public financial management, procurement, and corruption. Consulting with stakeholders regularly would mitigate these risks, and regular dissemination workshops will inform stakeholders of the findings of the studies conducted under the TA. C. Cost and Financing 11. The TA is estimated to cost $1.01 million, of which $1 million will be financed on a grant basis by the Japan Fund for Poverty Reduction and administered by ADB. The cost estimates and financing plan are in Appendix 2. The government will provide counterpart support in the form of counterpart staff, office space, office supplies, domestic transportation, workshop venues, remuneration and per diem of counterpart staff, and other in-kind contributions. The value of the government contribution is estimated to account for 1% of the total TA cost. D. Implementation Arrangements 12. The TA will be implemented from January 2016 to December 2017. ADB s India Resident Mission will administer the TA and the Department of Industries, Rajasthan will be the executing agency. The TA will be implemented in close coordination with the Rajasthan State Industrial Development and Investment Corporation, the Japan Bank for International Cooperation, Japan International Cooperation Agency, and internal partners, including ADB s South Asia Regional Cooperation and Operations Coordination Division and South Asia Urban Development and Water Division. 13. The TA will engage a consulting firm as well as individual consultants. The TA provides for 12 person-months of international consultant inputs and 78 person-months of national consultant inputs. The consultants will include (i) an industrial cluster specialist and team leader (international, 6 person-months); (ii) a transport expert (national, 6 person-months); (iii) an urban infrastructure expert (national, 6 person-months); (iv) an energy expert (national, 6 person-months); (v) a policy and regulatory expert (national, 6 person-months); (vi) economists

4 and/or analysts (national, 2, 12 person-months each); (vii) a capacity development expert (national, 6 person-months); (viii) a coordination expert (national, 24 person-months); (ix) an industry economist (international, 2 person-months); (x) an urban infrastructure specialist (international, 2 person-months); and (xi) a policy and regulatory specialist (international, 2 person-months). 14. The outline terms of reference for consultants are in Appendix 3. ADB will engage consultants in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time). Consulting firms will express their interest through a simplified technical proposal and will be engaged using quality- and cost-based selection. The method for engaging individual consultants will be decided on a case-to-case basis. Output-based lump-sum payments contracts will be considered. Disbursements under this TA will be made in keeping with ADB s Technical Assistance Disbursement Handbook (2010, as amended from time to time) and all procurements will follow ADB s Procurement Guidelines (2015, as amended from time to time). ADB will also provide workshop venues and consultation activities organized at the India Resident Mission. 15. The TA will be monitored through the evaluation of consultant outputs, regular reporting, and feedback solicited from key stakeholders. Consultants will submit progress reports to be evaluated thoroughly in consultation with the core team members, who will provide detailed feedback. The progress reports will be closely monitored and evaluated against the agreed timelines and terms of reference. Annual TA progress reports detailing the status of the TA activities will be submitted to the donors. A TA completion report evaluating the achieved outputs against the targets will be prepared at the end of the project, and the findings will be shared with the donors and other stakeholders. 16. Consultation workshops will be held regularly to discuss the progress of the TA, its findings, and any issues involved. The development results of the TA and lessons learned will be disseminated in the India ADB partnership publications and other ADB reports. IV. THE PRESIDENT'S DECISION 17. The President, acting under the authority delegated by the Board, has approved ADB administering technical assistance not exceeding the equivalent of $1,000,000 to the Government of India to be financed on a grant basis by the Japan Fund for Poverty Reduction for Supporting Rajasthan s Productive Clusters in the Delhi Mumbai Industrial Corridor, and hereby reports this action to the Board.

Appendix 1 5 DESIGN AND MONITORING FRAMEWORK Impacts the TA is aligned with: A more investment-friendly climate, increased competitiveness of industrial clusters in the Delhi Mumbai Industrial Corridor, and a higher employment rate in Rajasthan (Rajasthan Twelfth Five-Year Plan, 2012-2017) a Results Chain Outcome Capacity of the Government of Rajasthan to develop productive clusters and the economic corridor strengthened Performance Indicators with Targets and Baselines A cluster development plan for each of the identified productive clusters to speed up the industrial development of Rajasthan approved by 2017 (2015 baseline: None) Data Sources and Reporting Official website of the Bureau of Investment Promotion, Rajasthan Economic Review and/or State Budget, Government of Rajasthan Risks Inadequate government ownership within the state to implement regulatory reforms and/or invest in infrastructure within the identified productive clusters At least one infrastructure development investment project to strengthen the identified productive clusters in Rajasthan included in the India investment program for 2018 (2015 baseline: Not applicable) Economic Review and/or State Budget, Government of Rajasthan Outputs 1. Cluster development plan for accelerated industrial development in Rajasthan completed 1a. Analysis of industries in at least three priority productive clusters conducted by 2017 (2015 baseline: Not applicable) 1b. Infrastructure gap analysis to assess the strength of inbound and outbound linkages of at least three productive clusters completed by 2017 (2015 baseline: Not applicable) 1a-1d. Economic Review and/or State Budget, Government of Rajasthan Delayed completion of the cluster development plan due to difficulties in building consensus among the numerous stakeholders in the planned industrialization project 1c. Regulatory framework assessment for the development of productive clusters conducted by 2017 (2015 baseline: Not applicable) 1d. An institutional assessment of the roles and functions of the

6 Appendix 1 Results Chain Performance Indicators with Targets and Baselines agencies involved in planning and managing productive clusters conducted by 2017 (2015 baseline: Not applicable) Data Sources and Reporting Mechanisms Risks 2. Capacity building on the design, development, and management of productive clusters and economic corridors implemented 2a. The DOI and other relevant officials trained in productive cluster management and planning by 2017 (2015 baseline: Not applicable) 2b. At least two workshops on ease of doing business and conducive environments for industrial clusters in Rajasthan conducted for DOI staff by 2017 (2015 baseline: Not applicable) 2a. Training material and list of participants 2b. Workshop modules, assessment, and list of participants 2c. At least two seminars on synchronizing industrial policy and urban development conducted by 2017 (2015 baseline: Not applicable) 2c. Seminar resources 2d. At least three workshops on the findings and assessments of the clusters development plan conducted by 2017 (2015 baseline: None) 2d. Workshop presentations

Appendix 1 7 Key Activities with Milestones 1. Cluster development plan for the accelerated industrial development of Rajasthan completed 1.1 Identify existing clusters and those with high growth potential in consultation with key stakeholders (within 9 months after TA approval) 1.2 Review and assess the governance structure of the identified productive clusters, including their financial, implementation, and planning capacity (within 12 months after TA approval) 1.3 Prepare reports on infrastructure gaps and the institutional framework of the agencies and bodies, and help plan and manage the identified clusters where relevant (within 15 months after TA approval) 1.4 Plan meetings to consult with key stakeholders on the progress and findings of the TA activities (continuous during the TA period) 1.5 Organize seminars, workshops (inception, midterm, and final), and conferences to present key findings of the assessments (continuous during the TA period) 2. Capacity building on the design, development, and management of productive clusters and economic corridors implemented 2.1 Assess knowledge gaps in and demand for capacity building in select agencies to improve the planning, management, and development of productive clusters, as well as economic corridor development where applicable (to begin within 6 months after TA approval). 2.2 Mobilize experts for various workshops and capacity-building programs and help design the programs (continuous during the TA period). 2.3 Organize capacity-building programs on topics such as ease of doing business, conducive environments for industrial clusters, and the synchronization of industrial policy and urban development (to begin 6 months after TA approval). Inputs Japan Fund for Poverty Reduction: $1 million (grant) Note: The government will provide counterpart support in the form of counterpart staff, office space, office supplies, domestic transportation, workshop venues, remuneration and per diem of counterpart staff, and other in-kind contributions. Assumptions for Partner Financing Not applicable. DOI = Department of Industries, TA = technical assistance. a Planning Department, Government of Rajasthan. 2012. Twelfth Five-Year Plan, 2012 2017. Jaipur. Source: Asian Development Bank.

8 Appendix 2 COST ESTIMATES AND FINANCING PLAN ($'000) Item Amount Japan Fund for Poverty Reduction a 1. Consultants a. Remuneration and per diem i. International consultants 270.0 ii. National consultants 490.0 b. International and local air travel 48.0 c. Local travel 13.0 d. Reports and communications 10.0 2. Surveys 10.0 3. Equipment b 1.0 4. Training, seminars, and conferences 84.0 5. Miscellaneous administration and support costs c 4.0 6. Contingencies 70.0 Total 1,000.0 Note: The technical assistance (TA) is estimated to cost $1.01 million, of which contributions from the Japan Fund for Poverty Reduction are presented in the table above. The Government of Rajasthan will provide counterpart support in the form of counterpart staff, office space, office supplies, domestic transportation, workshop venues, remuneration and per diem of counterpart staff, and other in-kind contributions. The value of the government contribution is estimated to account for 1% of the total TA cost. a Administered by the Asian Development Bank. b Includes computers, printers, and necessary software. The equipment will be transferred to the government upon TA completion. c Includes travel costs of Asian Development Bank staff serving as resource persons in seminars and workshops. Source: Asian Development Bank estimates.

Appendix 3 9 OUTLINE TERMS OF REFERENCE FOR CONSULTANTS 1. The technical assistance (TA) will engage a consulting firm as well as individual consultants for 90 person-months (12 person-months of international consultant inputs and 78 person-months of national consultant inputs). Inputs may be provided intermittently, if agreed upon by the Asian Development Bank and the consulting firm. The overall terms of reference are subject to change during implementation depending on the circumstances. 2. Consulting firm (60 person-months). A consulting firm will be engaged to identify the relevant productive clusters in the state for detailed study and assessment. The team will comprise (i) an industrial cluster specialist and team leader (international, 6 person-months); (ii) a transport expert (national, 6 person-months); (iii) an urban infrastructure expert (national, 6 person-months); (iv) an energy expert (national, 6 person-months); (v) a policy and regulatory expert (national, 6 person-months); (vi) economists and/or analysts (national, 2, 12 personmonths each); and (vii) a capacity development expert (national, 6 person-months). The firm will create development plans for the identified clusters and will carry out the following tasks: (i) (ii) state-level industry analysis to (a) analyze growth, performance, and employment potential based on productivity, trade volume and growth, foreign direct investments performance, and supply chain linkages to gauge the industry s overall competitiveness; and (b) profile female employment within the industry to assess the employability of women. Identification of existing and potential clusters by (a) Critically examining the tools most commonly used in industrial cluster literature to identify industrial and/or productive clusters and selecting those most suitable to the Rajasthan context and data availability, in close consultation with key stakeholders. Among the methodologies to be considered should be value chain analysis, input-output analysis, expert interviews, locational analysis, and surveys. This should be supplemented by the results of the industry analysis conducted in the step above. (b) Identifying both existing and potential productive clusters taking into account factors such as critical mass of companies and other stakeholders such as universities and institutes of higher and technical education and business associations; existing and planned government policies and program interventions (such as infrastructure programs and programs supporting business development, training, and export promotion); the availability of land for development; proximity to urban centers; rail and road connectivity; and the availability of power and water. (iii) Conduct an infrastructure gap analysis to assess the strength of inbound and outbound linkages between the identified productive clusters and their connections to the less-developed hinterland. The firm will conduct the following: (a) Review existing infrastructure and identify critical gaps in the following areas:

10 Appendix 3 1. Transport: Freight transportation (roads and railways), logistics, storage and distribution of goods between the raw material sources, production centers in the region, markets, and hinterland. 2. Water and other urban infrastructure and services: Water resource and/or wastewater planning within the cluster taking into account the status of different water and/or wastewater sources and estimated water requirements, and identifying suitable measures to ensure a sustainable water supply. 3. Power: Demand estimation in the cluster looking at the industry profile; assessing supply options including assessing the feasibility of conventional fuels (coal and gas), and the potential of nonconventional sources (wind and solar) to supply power to the cluster and; assessing available infrastructure to meet the cluster s requirements. (b) Identify early-bird infrastructure projects to support the identified industrial clusters by examining all possible interventions, from last-mile connectivity to hinterland connections. (iv) (v) (vi) Perform a regulatory framework assessment to understand the extent to which existing rules and regulations (and their implementation) impede the operation and growth of the identified productive clusters. This assessment will take into account cluster-specific requirements and will (a) analyze key aspects of the regulation and administrative processes that could reduce the competitiveness of existing productive clusters and impede the creation of new productive clusters; (b) assess ongoing work, propose recommendations to streamline processes, and improve the implementation of existing regulations and policy measures; and (c) assess the regulatory environment for small and medium-sized enterprises and the extent to which existing policy measures and regulations are implemented, and suggest ways to improve implementation and streamline existing measures. Conduct an institutional assessment of agencies whose activities directly impact development and management of clusters. This should also include identification of governance structure for the identified clusters and an assessment of capacity of selected urban municipalities to support subsidiary soft infrastructure (such as ability to provide multimodal transport, good housing, and their financial and implementation capacity to deliver the last mile of infrastructure and services), Other agencies ability to implement the measures necessary to support the identified clusters also needs to be assessed. Develop capacity building and training programs for government agencies to increase awareness of the significance of productive cluster development and management, assess staff capacity, and prepare training materials. The training modules will cover such topics as synchronizing urban planning and industrial policy, the benefits of industrial clusters and economic corridors, and ways to promote international competitiveness, as well as more hands-on training such as in information technology and data entry to ensure efficient implementation of existing government initiatives to improve ease of doing business.

Appendix 3 11 (vii) Develop a concise productive cluster development approach paper that pulls together the elements of (i) (vi). 3. Coordination expert (national, 24 person-months): The expert will (i) support the dayto-day management and coordination of the TA activities; (ii) liaise between the consulting firm and consultants, and the executing agency; (iii) help plan, schedule, and monitor the TA activities; (iv) facilitate meetings between various stakeholders; and (v) help implement and prepare content for capacity development workshops. 4. Industrial economist (international, 2 person-months): The economist would supervise the consulting firm on the industry analysis and productive clusters identification, drawing lessons and experience from other developed and developing countries. He or she would work in coordination with the consulting firm and would review and provide inputs in the industry and productive clusters component of the TA. The specialist would also provide inputs and feedback at workshops, and make presentations on the specialized topics, and design capacity building program for government officials, as required. 5. Policy and regulatory specialist (international, 2 person-months): The specialist would supervise the consulting firm on the regulatory and implementation framework component of the TA. The specialist would work in coordination with the consulting firm and would review and provide inputs in the section on regulatory assessment. The specialist would also provide inputs and feedback at workshops, and make presentations on the specialized topics, and design capacity building program for government officials, as required. 6. Urban infrastructure specialist (international, 2 person-months): The specialist would supervise the consulting firm on the analysis of issues and infrastructure gap assessments related to water, sewage, and waste management in the identified productive clusters. This would also include proposing critical investments to support these clusters. The specialist would work in coordination with the consulting firm and would review and provide inputs in the section on the urban infrastructure. The specialist would also provide inputs and feedback at workshops, and make presentations on the specialized topics and design capacity building for government officials, as required.