MSE-CDP: Scheme for United Prosperity

The "Micro and Small Enterprises - Cluster Development Programme (MSE-CDP)" was implemented across the country by the Ministry of MSME. The scheme's goal is to boost the productivity and competitiveness of Micro and Small Enterprises (MSEs) through financial support in the form of a Government of India (GoI) grant for the establishment of Common Facility Centers (CFCs) and Infrastructure Development (ID)  in existing clusters and for the establishment of new / up-gradation of existing Industrial Areas / Estates / Flatted Factory Complexes. The Cluster Development Programme is one of the Ministry of MSME's oldest schemes managed by the Office of Development Commissioner.    

Through a cluster approach, the scheme aims to support the sustainability and growth of MSES by addressing common issues such as improved technology, skills, quality, market access, and so on. The MSE-CDP scheme aims to provides financial assistance to Common Facility centers, which in turn help clusters of MSE units. Furthermore, the cluster development Program's approach of serving several bunches is the primary tactic for increasing the productivity and stability of the MSME sector. The government approved revised guidelines for its key scheme, which will be implemented during the 15th Finance Commission cycle, which runs from FY22 to FY26.

Nature of Assistance

• CFCs: The central government grant will be limited to 70% of the project cost between Rs. 5.00 Cr and Rs. 10.00 Cr and 60% of the project cost between Rs. 10.00 Cr and Rs. 30.00 Cr. In the case of NE and Hill States, Island Territories, and Aspirational Districts, the government grant will be 80% of the project cost between Rs. 5.00 Cr and Rs. 10.00 Cr and 70% of the project cost between Rs. 10.00 Cr and Rs. 30.00 Cr. Projects for CFC with project costs greater than Rs. 30.00 Cr will also be considered, but government assistance will be calculated using the maximum eligible project cost of Rs. 30.00 Cr.

• Infrastructure Development: The central government grant will be limited to 60% of the project cost ranging from Rs. 5.00 Cr to Rs. 15.00 Cr for the establishment of a new Industrial Estate / Flatted Factory Complex, and 50% of the project cost ranging from Rs. 5.00 Cr to Rs. 10.00 Cr for the up-gradation of an existing Industrial Estate / Flatted Factory Complex. In the case of NE and Hill States, Island Territories, and Aspirational Districts, the grant will be 70% of the project cost ranging from Rs. 5.00 Cr to Rs. 15.00 Cr for the establishment of a new Industrial Estate / Flatted Factory Complex and 60% of the project cost ranging from Rs. 5.00 Cr to Rs. 10.00 Cr for the upgrading of an existing Industrial Estate / Flatted Factory Complex. The project for ID with a project cost greater than Rs. 10.00 Cr/15.00 Cr may also be considered, but government assistance will be calculated using the maximum eligible project cost of Rs. 10.00 Cr/15.00 Cr.

• Marketing Hubs/Exhibition Centers by Associations: The GoI grant will be limited to 60% of the project cost of up to Rs. 10.00 Cr for Product Specific Associations with a BMO rating of Gold Category or higher from NABET (QCI) and 80% for Associations of Women Entrepreneurs. SPV/State Government will bear the remaining project costs.

• Thematic Interventions: Grants will be limited to 50% of the total cost of up to five activities, with a maximum grant of Rs. 2.00 lakh per activity. The GoI grant under this component would be Rs. 10.00 lakh for each CFC.

• Support to State Innovation Cluster Development Programme: The GoI fund would be limited to the State Government's share or Rs. 5.00 Cr, whichever is less, and the assistance would be 90% of project cost in respect of CFC projects in the North-East/Hilly States, 10 Island territories, Aspirational Districts/ LWE affected Districts, and projects where beneficiaries are SC/ ST/ Women owned enterprises.