Cluster is a group of enterprises located within an identifiable & as far as practicable contiguous area& producing same/similar products/services.

There are two schemes of Government of India & one scheme from Government of Maharashtra. These are:

1. Micro, Small Enterprises – Cluster Development Programme (MSE-CDP): Ministry of MSME, Government of India
2. Industrial Infrastructure Up gradation Scheme (IIUS) : Ministry of Industry & Commerce (Department of Industries Policy & Promotion)
3. Maharashtra State Industrial Cluster Development Programme (MSICDP) : Government of Maharashtra, Industry, Energy & Labour Department)

Minimum 20 Micro, Small working units in same or similar sector located within an identifiable and as far as practicable, contiguous area are eligible to take the benefit of MSE-CDP.

The benefits under MSE-CDP are as below:

1. To conduct Soft Intervention (SI) Programme:

Maximum limit of the approved project cost for SI is ₹ 25.00 lakhs which includes GoI grant @75% & Beneficiaries contribution @25%. The clusters with more than 50% of micro/village/women/ SC/ST entrepreneurs will get GoI grant @90%.

2. Hard Intervention (Common Facility Center (CFC)):

The GoI grant will be restricted to 70% of the cost of project of maximum ₹ 15.00 Crores.

3. GoI grant will be 90% for clusters with more than 50% Micro/Village/Women/ SC/ST entrepreneurs.

General Manager, District Industries center of concerned district will initiate & guide for the cluster proposals.

It is not required to have existing formal association / group to initiate cluster project. After decision to implement cluster project & confirming the eligibility, the special Purpose Vehicle (SPV), legal entity is required to form.

The main programmes that are being implemented are Soft Intervention & Hard Intervention (Setting up of Common Facility Center (CFC)).

Yes. Any new entrepreneurs from the related activity can join the cluster programme at any stage.

Special Purpose vehicle (SPV) is a legal entity registered under the company act 1956/trust/Private limited company/ section 25 / society etc. SPV is an open ended entity. The main purpose of SPV is to execute, maintain, and run the CFC.

No any direct cash benefit is given to the individual unit under the MSE-CDP scheme.

The cluster with more than 50% women/SC/ST entrepreneurs will get additional financial support as explained above.

• Soft Intervention : Limited to 18 months
• Hard Intervention (CFC) : Two years from the date of issue of Final approval order to the project

The equipments of CFC are purchased through the E-tendering procurement system. A Purchase Committee is formed under the chairmanship of concern Joint Director of the Industries, Regional Office.

The maximum limit of the shareholding of each member of SPV, shall not exceed 10%.

Minimum mandatory contribution of stakeholders (SPV members) required under MSE-CDP is 10%.

The Steering Committee under the chairmanship of Secretary (MSME), Govt. of India, New Delhi is a final authority for approval of cluster projects under MSE-CDP.