Guidelines for Small Business Cluster Development Programme Approved

On 27th May 2022 the government approved the revised guidelines of its key scheme for cluster development, “Micro and Small Enterprises-Cluster Development Programme (MSE-CDP)”. The guidelines shall be implemented during the 15^th Finance Commission cycle (FY22-FY26). 

The scheme aims at enhancing the competitiveness and productivity of micro and small enterprises by undertaking specific interventions.

These guidelines of MSE-CDP encompass, inter-alia, the procedure and funding pattern for the following admissible components:

1. Common Facility Centers (CFCs)
2. Infrastructure Development
3. Marketing Hubs/Exhibition Centres by Associations
4. Thematic Interventions
5. Support to State Innovative Cluster Development Programme 

Additionally, the central government’s grant for the development of Common Facility Centres (CFCs) shall be restricted to 70 per cent of the cost of the project from Rs 5 crore to 10 crores and 60 per cent of the cost of the project from Rs 10 crore to Rs 30 crore.

Further, in the case of north-east and hill states, island territories and aspirational districts, the government’s grant will be 80 per cent of the cost of the project from Rs 5 crore to Rs 10 crore and 70 per cent of the cost of the project from Rs 10 crore to Rs 30 crore. 

It has also been envisaged that the central government grant will be restricted to 60 per cent of the cost of the project from Rs 5 crore to Rs 15 crore for the setting up of new industrial estate/flatted factory complex. The grant will be 50 per cent of the cost of the project from Rs 5 crore to Rs 10 crore for the upgradation of the existing industrial estate/ flatted factory complex.