The scheme was launched by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI). Cluster can be defined as a number of enterprises that practice and produce the same products and services. The cluster development programme helps the small business located in clusters in various ways. Moreover, cluster development, there are several other MSME schemes and initiatives, to help MSMEs in their growth journeys.
Objectives of Micro & Small Enterprises – Cluster Development Programme
The main objectives of the MSE-CDP are mentioned below:
- Common facility centres to be set up for complementing production processes, effluent treatment, material depot, training centres, testing, etc.
- In capacity building for micro and small enterprises through formation of self-help groups/clusters/associations, etc. for common supportive action.
- In creating infrastructure facilities within the new or upgrading existing industrial infrastructure such as industrial complex, flatted factory complex, etc.
- Improving access to capital, market access, skills and quality, in order to help in supporting sustainability.
Also Read: MSME Advantages and Disadvantages
Components of Micro & Small Enterprises – Cluster Development Programme
The components of the MSE-CDP are as follows:
- Development of Infrastructure: Improvement of technological backup services, common service facilities, marketing outlets and materials storage, banks, roads, pollution control facilities and drainage, telecommunication, water and power distribution network for MSEs at existing and and new industrial areas are some of the infrastructural facilities that come under this project. The Indian Government will provide 60% of Rs. 10 Crore, which is the cost of the project. However, the Indian Government will provide 80% of the cost of the project in North-Eastern and Hill states and industrial areas that consist of more than 50% SC/ST, women owned and micro units.
- Establishment of Common Facility Centres: Setting up Common Facility Centres (CFCs) such as Research & Development (R&D) Centres, Common Logistics Centre, Training Centre, Testing Facilities, Design Centres. Common Production or Processing Centres, etc. 70% of the cost of the project subject to a maximum of Rs 15 crore will be provided by the government towards the project. However, for CFCs in North-Eastern and Hill States, the government will provide 90% of the cost of the project.
What is Eligibility Criteria for MSE-CDP?
Eligibility Criteria for the assistance under the MSE-CDP, a cluster must:
- Consist of a group of micro and small enterprises located in a geographically contiguous area.
- Must be active in the manufacturing, processing or service sector.
- Have a minimum of 20 enterprises as members.
Check MSME Loan Scheme:
- CGTMSE Scheme
- CLCSS Scheme
- Credit Guarantee Scheme
- NSIC Registration
- PMEGP
- Mudra Loan
- PSB Loans in 59 Minutes
- PMRY Loan
- Stand-up India and Start-up India
Status of the Project
| Financial Year | Achievements | |||
| Financial contribution with a maximum of Rs. 15 crore | Physical numbers | |||
| BE/RE | Exp | CFCs | ID Projects | |
| 2014-15 | 93.00/84.60 | 63.18 | 5 | 9 |
| 2015-16 | 100/102.95 | 81.36 | – | 4 |
| 2016-17 | 135/123 | 121.68 | 5 | 5 |
| 2017-18 | 184/157.65 | 157.11 | 13 | 11 |
| 2018-19 | 279/173.40 | 172.73 | 17 | 11 |
Note: Above table shows the data of the CFCs and Infrastructure Development projects till 31st March 2019.
How to Apply for MSE- CDP?
Applications for the MSE-CDP can be submitted online. Hard applications must be sent via State Governments or Ministry of MSME field institutes or autonomous bodies of the State Government. However, the Steering Committee of the MSP-CDP must approve the applications for them to be processed.
Some of the important documents to be submitted include:
- Detailed project report
- Project appraisal report
- Registered land documents
- Other documents certifying necessary compliances
As a MSME owner, if you haven’t already it is recommended to get your business registered on the Udyam portal for the MSME certification, with details on the updated MSME classification for your business.
MSE-CDP Guidelines
The Micro & Small Enterprises Cluster Development Programme (MSE-CDP) has several guidelines, that include:
- Project Approval
- Monitoring and Evaluation
- Assistance Limits
- Soft Interventions
- Clusters
For further details click here
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FAQs
What percent of Programs completed under cluster development program?
18 projects of Common Facility Centres in various clusters have been developed/completed all over country during the last three years (i.e. FY 2021-22 to 2023-24).
Contact details for Cluster Development program?
For contact details one can visit the official website dcmsme and can avail the contact details accordingly.
Contact Details Division wise click here
Also you can contact:
Contact: U.C.Shukla, Director (Cluster Development), O/o DC MSME
Email: [email protected]
Ph.: 011-23062148
What is the Concept behind the Cluster Development program?
The objective of the scheme is to enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs) for the holistic development adopting cluster approach through financial assistance as Government of India grant for establishment of Common Facility Centre in the existing clusters.
What is the type of assistance provided for setting up of Common Facility Centres (CFCs)?
For setting up of Common Facility Centre (CFCs), the Government of India grant will be restricted to 70% of the cost of project from Rs 5 crore to Rs 10 crore and 60% of the cost of project from Rs 10 crore to Rs 30 crore.
Can projects more than Rs. 30 crores be covered under MSE-CDP scheme?
Yes, the project for CFC with project cost more than Rs 30 crore can also be considered but the GoI assistance would be calculated by taking into account the maximum eligible project cost of Rs 30 crore.
Names of implementing agencies for setting up of CFCs?
Implementing agencies are:
- Institutions of the Ministry of MSME (MSME-DIs, NSIC,KVIC, Coir Board, Technology Centres, NI-MSME and MGIRI).
- Organisations of State Governments.
- National and international institutions engaged in development of the MSE sector.
- Any other institution / agency approved by the Ministry of MSME
What items are admissible under CFCs?
Admissible items under setting up Common Facility Centre (CFCs) are:
- Common Production / Processing Centre (for balancing/correcting / improving production lines that cannot be undertaken by individual units).
- Common Recycling/Resource Recovery Plant.
- Industry 4.0 and its Learning Facilities, Additive Manufacturing Facilities, Digital Infrastructure.
- Design/Incubation Centres.
- Testing and Quality upgradation Facilities/Product Standards Development.
