Scheme Sponsor: Ministry of MSME
Mode of Assistance: Business Development Services, Market Linkages
Target Beneficiary:
About the Scheme:
The cluster development approach has been embraced by the Ministry of Micro, Small and
Medium Enterprises (MSME), Government of India (GoI), as a critical tactic for improving
the productivity and competitiveness, as well as capacity building, of Micro and Small
Enterprises (MSEs) and their collectives across the nation.
Assistance Pattern:
i) Common Facility Centers (CFCs) :
The Gol grant would be limited to 70% of the project’s cost, a maximum of
Rs.20.00 crore. The Gol grant will be 90% for CFCs in NE and Hill States, Island
Territories, Aspirational Districts/LWE Affected Districts, Clusters with more than
50% a)micro/village, (b) women-owned, and (c) SC/ST units. The cost of the
project includes land (up to a maximum of 25% of the project cost), building, pre-
operative expenses, preparatory expenses, machinery and equipment,
miscellaneous fixed assets, support infrastructure such as water supply and power,
and working capital margin.
ii) Infrastructure Development:
The Gol grant will be limited to 60% of the project cost (Rs. lO.OO crore for
Industrial Estate and Rs. 15.00 crore for Flatted Factory Complex). The Gol grant
will be 80% for projects in NE and hilly states, island territories, aspirational
districts, LWE-affected districts, industrial regions / estates, and flatted factory
complexes with more than 50% (a) micro/village, (b) women-owned, and (c)
SC/ST. For current clusters, upgrade offers will be based on actual needs.
iii) Marketing Hubs / Exhibition Centers by Associations:
The Gol grant would be limited to 60% of the project cost of up to Rs. 0.00 crore
for Product Specific Associations with an SMO rating of Gold Category or higher
from NABET (QCI), and 80% for Associations of Women Entrepreneurs. The
remaining project costs will be met by the SPV/State Government. The Gol
contribution will be used for building construction, furnishings, furniture, fittings,
permanent exhibit items, and ancillary assets like as generators.
iv) Thematic Interventions:
The Gol grant will be limited to 50% of the total cost of
up to 5 Thematic Interventions, not exceeding Rs.2.00 lakh for each in an
authorized / completed CFC for the activities listed below. As a result, the
maximum Gol award under this component for each CFC would be Rs.IO.OO
lakh. The remaining costs would be met by the SPV/State Government.
(a) Training programmes.
(b) Exposure visits
(c) Improving the Business Development Service (BDS) delivery through a panel
of service providers.
(d) Any additional activity linked to establishing a business eco-system in cluster
mode.
v) Support for State Innovative Cluster Development Programmes:
Several state governments have launched state-funded cluster development
programmes to support soft and hard interventions in clusters with little budget.
To strengthen this activity, this component will co-fund CFC initiatives under the
State Cluster Development Programme on a matching share basis. The Gol fund
would be limited to the State Government’s portion or Rs.5.00 crore, whichever is
lesser. According to the scheme guidelines of the State Cluster Development
Programme, Gol assistance would be 90% of the project cost not exceeding
Rs.5.00 crore for CFC projects in North East/Hilly States, Island territories,
Aspirational Districts/L WE affected Districts, and projects where beneficiaries
are SC/ST/Women-owned enterprises.
Apply on: https://cluster.dcmsme.gov.in/
More Information on: https://my.msme.gov.in/MyMsme/Reg/COM_ClusterForm.aspx