The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Clustering of units also enables providers of various services to them, including banks and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises.

Objectives of the Scheme:

(i) To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc.

(ii) To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc.

(iii) To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.

(iv) To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc).

Scope of the scheme:

(i) Diagnostic Study

(ii) Soft Intervention

(iii) Setting up of Common Facility Centres (CFCs)

(iv) Infrastucture Development (Upgradation / New)

Cost of Project and Govt of India Assistance:

(i) Diagnostic Study - Maximum cost Rs. 2.50 lakhs.

(ii) Soft interventions - Maximum cost of project Rs. 25.00 lakh, with GoI contribution of 75% (90% for Special Category States and for clusters with more than 50% women/micro/village/SC/ST units).

(iii) Hard interventions i.e setting up of CFCs – maximum eligible project cost of Rs. 15.00 crore with GoI contribution of 70% (90% for Special Category States and for clusters with more than 50% women/micro/village/SC/ST units) .

(iv) Infrastructure Development in the new/ existing industrial estates/areas.Maximum eligible project cost Rs.10.00 crore, with GoI contribution of 60% (80% for Special Category States and for clusters with more than 50% women/micro/SC/ST units).

How to approach :

Online Applications are only considered with effect from 01-04-2012. Hard copy of Applications needs to be sent through State Govts or their autonomous bodies or field institutes of Ministry of MSME ie. MSME-DIs. The proposals are approved by the Steering Committee of the MSE-CDP.

Progress Report
Cluster Development: A total of 1018 interventions in various clusters spread over 29 States and 1 UTs in the country have so far been taken under the programme.

i) Total clusters taken

1018 (till date)

• Ongoing clusters

341

- Diagnostic Study

165

- Soft interventions

106

- Hard interventions

70

• Completed Clusters

677

- Diagnostic Study

408

- Soft interventions

235

- Hard interventions

34

ii) Total infrastructure projects taken

178

- Ongoing projects

52

- Completed

126

Statement of funds sanctioned under MSE-CDP from 2011-12 to 2014-15 and 2015-16 (up to 30.03.2016).

Year BE/RE Expenditure (Rs. Crore)
2011-12 80.00 / 44.00 30.78
2012-13 32.00 / 49.26 23.44
2013-14 53.00 / 68.50 41.41
2014-15 93.00 / 84.60 63.18
2015-16 100.00 / 102.95 75.01
Financial Progress: Expenditure of Rs.75.01 Crore has been incurred during the financial year 2015-16 (up to 30.03.2016) under MSE-CDP for carrying out various interventions.