The Government of India(GoI) has approved the New Guidelines of Micro & Small Enterprises Cluster Development Programme (MSE–CDP). This will be implemented during the 15th Finance Commission Cycle: 2021-22 to 2025-26.
- The new guidelines of MSE-CDP are issued in supersession of the previous guidelines (2019) and encompass inter-alia, the procedure and funding pattern.
Click here for the New Guidelines of MSE-CDP
Objective:
- To enhance the sustainability, competitiveness and growth of MSEs by addressing issues like improvement of technology, skills and quality, market access, and others
- To build the capacity of MSEs and Startups for common supportive action through the integration of self-help groups, consortia, district Industry associations, etc.
- To create or upgrade infrastructural facilities in the new or existing Industrial Areas or Clusters of MSEs.
- To establish CFCs in Industrial areas for the testing, training centre, raw material depot, effluent treatment, and complementing production processes.
- To Promote green & sustainable manufacturing technology for the clusters, to enable units to switch to sustainable and green production processes and products.
Two Components of the Scheme:
i.Common Facility Centers (CFCs): The component consists of the creation of tangible “assets” as CFCs in Industrial Estate.
ii.Infrastructure Development(ID): This component is for development of Infrastructure in new/existing notified Industrial Estate.
Funding pattern:
| Components | Total Project cost | Funding Pattern | ||
|---|---|---|---|---|
| Govt of India | State Govt | SPV | ||
| Funding Pattern of Projects | ||||
| CFCs | Rs 5 crore to Rs 10 crore | 70% | 20% | 10% |
| CFCs | Rs 10 crore to Rs 30 crore | 60% | 20% | 20% |
| ID – New | Rs 5 crore to Rs 15 crore | 60% | 40% | – |
| ID – Upgradation of existing Infrastructure | Rs 5 crore to Rs 10 crore | 50% | 50% | – |
| Funding Pattern of Projects Located in the Aspirational Districts, NER(North Eastern Region), Hill States and islands | ||||
| CFCs | Rs 5 crore to Rs 10 crore | 80% | 15% | 5% |
| CFCs | Rs 10 crore to Rs 30 crore | 70% | 15% | 15% |
| ID – New | Rs 5 crore to Rs 15 crore | 70% | 30% | – |
| ID – Upgradation of existing Infrastructure | Rs 5 crore to Rs 10 crore | 60% | 40% | – |
Background:
i.Cluster Development Programme is one of the oldest schemes of the Office of Development Commissioner in the Ministry of Micro, Small & Medium Enterprises(MoMSME).
ii.The scheme was previously revised in 2007 and in 2019.
iii.In 2007, the Cluster Development scheme, Small Industries Cluster Development Programme (SICDP) was renamed “Micro and Small Enterprises – Cluster
Development Programme (MSE-CDP)”.
