Micro & Small Enterprises – Cluster Development Programme (MSE-CDP)

Procedure for approval

  1. Create a SPV (Section 8 Company)
  2. Prepare a Detailed Project Report (DPR)

Activities to be done by clusters

  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

Who to add in clusters?

MSMEs meeting any of the following criteria can be added

  1. Similarity or complementarity in the methods of production, quality control & testing, energy consumption, pollution control, etc.
  2. Similar level of technology & marketing strategies/practices
  3. Similar channels for communication among the members of the cluster
  4. Common market & skill needs
  5. Common challenges & opportunities that the cluster faces

Common Facility Centers (CFCs)

This component would cover creation of tangible “assets” as Common Facility Centers (CFCs) like Common Production/ Processing Centre (for balancing/correcting/improving production line that cannot be undertaken by individual units), Design Centres, Testing Facilities, Training Centre, R&D Centres, Effluent Treatment Plant, Marketing Display/Selling Centre, Common Logistics Centre, Common Raw Material Bank / Sales Depot, Plug & Play facility, facilities that can support marketing systems, collective Geographical Indications (GI), development of common production & product standards, development of new product designs, improved systems for better hygiene & working conditions for workers, systems for higher overall productivity & capacity utilization of the cluster, systems for skill upgradation of the cluster, as well as supporting diversification activities of enterprises and startups in the cluster, etc. Backward/Forward linkages for value addition in bi-product/waste of cluster units would also be admissible for enhancing productivity/profitability of individual units subject to condition that CFC itself would not sell/market products/bi-products directly.

Infrastructure Development

This component would cover development of land, provision of water supply, drainage, power distribution, non-conventional sources of energy for common captive use, construction of roads, common facilities such as first aid centre, canteen, any other need based infrastructural facilities in new industrial (multi-product) areas/estates or existing Industrial Areas/Estates/Clusters. Development of Flatted Factory Complexes can also be undertaken under this component.

Marketing Hubs/Exhibition Centres by Associations

The GoI assistance to Associations for establishing Marketing Hubs/Exhibition Centres at central places for display and sale of products of Micro and Small Enterprises.

Thematic Interventions

This component would provide GoI financial assistance for implementation of Thematic Interventions in approved/completed CFCs for following activities:
1) Training Programmes
2) Exposure Visits
3) Strengthening the Business Development Service (BDS) provision through a panel of service providers
4) Any other activity related to creating business eco-system in cluster mode

Support to State Innovative Cluster Development Programme

A few State Governments such as Haryana, Maharashtra, Bihar, etc. have initiated State funded Cluster Development Programme to support soft and hard interventions in clusters with limited funding support. In order to strengthen this activity, this component would provide co-funding of the CFC projects of State Cluster Development Programme on matching share basis.

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