New Guidelines of Micro & Small Enterprises Cluster Development Programme (MSE-CDP) approved

What is the News?

The Government has approved the New Guidelines of the Micro & Small Enterprises Cluster Development Programme (MSE-CDP). The programme will be implemented during the 15th Finance Commission Cycle(2021-22 to 2025-26).

What is Micro & Small Enterprises Cluster Development Programme?

The Government 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).

Nodal Ministry: Ministry of Micro, Small and Medium Enterprises (MSME).

Objectives:

-To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, etc.

– To build the capacity of MSEs for common supportive action through the formation of self-help groups, up-gradation of associations, etc.

-To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.

– To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, etc.

What are the new guidelines for MSE-CDP?

Common Facility Centers (CFCs): The central government grant will be restricted to 70% and 60% of the cost of the project under certain conditions.

Infrastructure Development: Similar restrictions have been placed for setting up of a new Industrial Estate / Flatted Factory Complex.

Source: The post is based on the article “New Guidelines of Micro & Small Enterprises Cluster Development Programme (MSE-CDP) approved” published in PIB on 27th May 2022.