Micro and Small Enterprises Cluster Development Programme – MSE-CDP

The honorary MSE-CDP scheme aims to assist the financial and infrastructural needs of the MSME sector. MSE-CDP an initiative by Government of India (GOI) and the Ministry of Micro, Small and Medium Enterprises. Accordingly it provides financial succor for Common Facility center which in return aid the clusters of MSE units. Further, this approach of serving several bunches under the cluster development Programme is the chief tactic to enhance the productivity and stability of MSME sector.

Salient Features of the MSE-CDP Scheme 

The scheme would majorly focus on:

  1. Diagnostic Studies– Initially a clear examination shall be conducted on the activities of the business. To understand the strengths, weaknesses, opportunities, and threats. And thus, formulate a plan to succeed. The maximum cost of this would be Rs 2.5 lakh.
  2. Soft intervention– Conducted in the form of awareness programs, counseling, creation of seminars and workshops, etc. A Maximum cost of Rs. 25.00 lakh, in combination with GOI 75% contribution of 75% for the general category. On the plus side, the special category contribution of GOI would be 90% and would be the same for clusters with more than 50% women/micro/village/SC/ST units. 
  3. Detailed Project Report (DPR) is concerned with technical practicability and monetary viability 
  4. Setting up CFCs for various business activities- A maximum project cost is restricted to Rs 15 crore. With this regard, GOI would provide aid up to 70% and the same for the special category would be 90%.
  5. Creation of Infrastructure Development Centres (IDCs)– This project is limited to Rs 10 crore while the government aids for 60%. Before similar increments, 80% is allocated to special categories.

MSME Schemes: MSE-CDP Data of Projects under Scheme
MSME Schemes: MSE-CDP Data of Projects under Scheme
Numerous programmes in connection with MSE-CDP initiative:

1. Common Facility Centers (CFCs): GoI grants 70% with a maximum cost of Rs 20 crore. 90% of assistance provided to special categories.

2. Infrastructure Expansion: GOI grants 60% with a maximum cost of Rs 15 crore. 80% assistance provided to special categories based on the requirements of the businesses.

3. Marketing Hubs / Exhibition Centres by Associations: GoI grants 60% with a maximum cost of Rs 10 crore. 80% of assistance provided to special categories 

4. Thematic Interventions: GOI grants 50% with a maximum cost of Rs 2 lakh

5. Support to State Innovative Cluster Development Programme

On the other hand, the infrastructural aid would help both the new and existing entrepreneurs belonging to:

  1. Multi-story Factory Complex
  2. Power distribution network
  3. Water, road, banks, raw materials
  4. Telecommunication 
  5. Drainage and pollution control facilities 
  6. Stowing and publicizing outlets 
  7. Common Service facilities 
  8. Technological and backup service outlets 
Financial Guidance Provided to CFCs for :
  1. Testing 
  2. Training
  3. Research and Development 
  4. Seepage treatment 
  5. Raw material Storehouse 
  6. Accompanying Manufacturing Processes
Objective of MSE-CDP
  1. To address the small technical, skill, infrastructural, and financial issues faced by MSME, thereby improve the sector
  2. To create support groups that would enhance the growth of MSME 
  3. Setting up several CFCs
  4. To encourage the production of green and compatible products through these clusters of organizations 

Any individual that is belonging to Manufacturing associations, entrepreneur’s consortiums or groups can apply for entitlement of the system.


Click here for enrollment form.

Further, the website for MSE-CDP is click here

Contact MSME-Development Institutes under DC-MSME for any related queries about the scheme.

In deduction, the scheme is successful concerning the enhancement of the establishments. As of now, 964 business groups have been considered under the scheme. while 193 of them are ongoing projects and the completed ones 771. In case of infrastructure schemes, out of 179 projects undertaken 135 have already been completed.

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