Micro & Small Enterprises Cluster Development Programme


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

Objectives of the scheme:

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

ii. To build the capacity of MSEs for common supportive action through the 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, raw material depot, effluent treatment, complementing production processes, etc.)

  • Diagnostic Study
  • Soft Intervention
  • Setting up of Common Facility Centres (CFCs)
  • Infrastructure Development (Upgradation/New)

Cost of project and Govt. of India assistance:

  • Diagnostic study - maximum cost Rs.2.50 lakh.
  • 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).

Industrial associations/Consortia, Clusters

Only online applications are considered with effect from 01-04-2012. Hard copy of applications need to be sent through State Governments or their autonomous bodies or field institutes of the Ministry of MSME i.e., MSME-DIs. The proposals are to be approved by the Steering Committee of MSE-CDP.