New Guidelines of Micro & Small Enterprises Cluster Development Programme (MSE-CDP) approved

Tags: Economy/Finance

The government has approved the new guidelines of Micro and Small Enterprises Cluster Development Program (MSE-CDP).

• It will be implemented during the 15th Finance Commission Cycle(2021-22 to 2025-26).

• The objective of this scheme is to increase the competitiveness and productivity of micro and small enterprises such as -

1. Common Facility Centers (CFCs)

The Central Government grant will be limited to Rs.5 crore to Rs.10 crore, 70% of the project cost and 60% of the project cost from Rs.10 crore to Rs.30 crore.

In case of NE & Hill States, Island territories, Aspirational Districts, government grant will be 80% of the cost of project from Rs 5 crore to Rs 10 crore and 70% of the cost of project from Rs 10 crore to Rs 30 crore. 

2. Infrastructure Development

Central Government grant will be limited to 60% of the project cost for setting up new industrial estate/flatted factory complex from Rs.5.00 crores to Rs.15.00 crores and 50% of the project cost from Rs.5.00 crores to Rs.15.00 crores.

In case of North Eastern and Hilly States, Island areas, Aspirational Districts, the grant will be 70% of the project cost, ranging from Rs.5 crore to Rs.15 crore and 60% of the cost for setting up of new industrial estate/flat factory complex.

• Objectives of MSE-CDP

• To support the sustainability and growth of MSEs by addressing common issues like technology, skill and quality improvement, market access etc.

• To build the capacity of MSEs for common support action through self-help groups, formation of associations, up-gradation of associations etc.

• Creation and upgradation of infrastructure facilities in new and existing industrial areas and clusters of MSEs.

• To set up common facility centres for testing, training centre, raw material depot, effluent treatment etc.