Govt revises guidelines for MSME cluster development

The scheme is intented to enhance the competitiveness and productivity of micro and small enterprises by undertaking interventions such as common facility centres, infrastructure, etc.

For setting up of Common Facility Centers (CFCs), the central government grant will be restricted to 70 per cent of the cost of project (from Rs5 crore to Rs10 crore) and 60 per cent of the cost of project (from Rs10 crore to Rs30 crore). In case of NE and hill states, island territories, aspirational districts, government grant will be 80 per cent of the cost of project (from Rs5 crore to Rs10 crore) and 70 per cent of the cost of project (from Rs10 crore to Rs30 crore).

For CFC with project cost more than Rs30 crore government assistance would be calculated by taking into account the maximum eligible project cost of Rs30 crore.

Similarly, central government grant for infrastructure development will be restricted to 60 per cent of the cost of project (from Rs5 crore to Rs15 crore) in the case of new industrial estate / flatted factory complex and grant will be 50 per cent of the cost of project (from Rs5 crore to Rs10 crore) for upgradation of existing industrial estate / flatted factory complex. In the case of NE and hill states, island territories and aspirational districts, the grant will be 70 per cent of the cost of project (from Rs5 crore to Rs15 crore) for setting up of new industrial estate / flatted factory complex and 60 per cent of the cost of project cost (from Rs5 crore to Rs10 crore) for upgradation of existing industrial estate / flatted factory complex. 

The grant for infrastructure development with project cost more than Rs10 crore/15 crore, government assistance would be calculated by taking into account the maximum eligible project cost of Rs10 crore/15 crore.

The new guidelines of MSE-CDP are available on the website of the Office of DC (MSME).