MSME Cluster Development Program

BANGALORE,INDIA: 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:

Diagnostic Study

Resourcing of Technology

Facilitating the transfer of technology from producer to end user.

Setting up of Common Facility Centres(CFCs).

R & D needs

Organising workshops, Seminars, Training and Study

Infrastructure Development

Activity

Implementing Agency

Diagnostic study

Offices of the Ministry of MSME

Offices of State Governments

National and international institutions engaged in development of the MSE sector.

Any other institution/agency approved by the Ministry of MSME

Soft Interventions

Setting up of CFC

Infrastructure Development projects

State/UT Governments through an appropriate state government agency with a good track record in implementing such projects.

Cost of Project and Govt of India Assistance:

Diagnostic Study - Maximum cost Rs. 2.50 lakhs.

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).

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) .

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 :

Proposals for consideration under MSE-CDP can 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.

Source: www.dcmsme.gov.in