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Micro & Small Enterprises-Cluster Development Programme (MSE-CDP)

  • Overview
  • Eligibility
  • Statistics
  • Notifications
  • FAQs

Overview

Govt. of India has announced schemes for upgradation of potential industrial clusters. Maharashtra has a rich inherent potential for cluster of traditional as well as advanced enterprises. Directorate of Industries has taken elaborate steps to explore these clusters by effectively implementing the cluster schemes.

Micro, Small, Medium Enterprises Ministry (MSME), Government of India has modified MSE-CDP scheme for micro & small enterprises on 10th February 2010. Under the said scheme, Govt. of India gives financial support by grant-in-aid to establish Common Facilities Centre (CFC) & infrastructure development to enhance the productivity and competitiveness of the clusters. CFC includes R & D facilities, Packaging Centre, Testing Centre, Training Centre, CETP, Common Processing Centre etc. The scheme is implemented by the Special Purpose Vehicle (SPV) under PPP mode.

Broad features of modifications are as below:

  • Maximum project cost for Common Facility Centre (CFC) from ₹ 10 Crore to ₹ 15 Crore, with Government of India contribution of 70%
  • Maximum project cost for Infrastructure Development to ₹ 10 Crore, with Government of India contribution of 60%
  • For Soft interventions maximum limit of project cost Rs.10.00 lakh. As per the modifications in the guidelines on 27th July, 2016 the Govt. of India will not give any grant for diagnostic study report (DSR) and Soft Interventions. However, if detailed project report is finally approved, sum of Rs.10.00 lakh will be consider as a contribution by the Special Purpose Vehicle (SPV) towards the project
  • Enhancement of the cost ceiling for preparation of Detailed Project Report (DPR) for CFC and/or Infrastructure Development to ₹ 5 Lakhs
Approved Projects under MSE-CDP

GoI has granted DSR approval to 42 cluster proposals out of which 16 cluster proposals have been finally approved & 5 Cluster proposals have been in-principally approved by GoI.

List of 21 finally / In-Principle approved Clusters (CFC) under MSE-CDP


SN Name of Cluster Location
1. Garment Cluster Vita, Sangli
2. Raisin Making Cluster Sangli
3. Fly Ash Cluster Chandrapur
4. Textile Cluster Shirpur, Dhule
5. Garment Cluster Nagpur
6. Ichalkaranji Textile Cluster Kolhapur
7. Textile Cluster Malegaon, Nashik
8. Dal Mill Cluster Nagpur
9. Auto & Engineering Cluster Ahmednagar
10. General Engineering & Allide Cluster Bhosari, Pune
11. Mango Processing Cluster Ratnagiri
12. Turmeric Cluster Sangli
13. Mahasainik Industrial Estate Cluster Pune
14. Cotton Fabric Cluster Hatkangale, Kolhapur
15. Terry Towel Cluster Solapur
16. Textile Cluster Navapur, Nandurbar
17. Textile Cluster, West Vidarbha Nagpur (In-Principle Approval)
18. Rice Mill Cluster, Ramtek Nagpur (In-Principle Approval)
19. Engineering Cluster Yadrav, Kolhapur (In-Principle Approval)
20. Printing Cluster Aurangabad (In-Principle Approval)
21. Paithani Saree Cluster Yeola, Nashik (In-Principle Approval)

List of 42 Clusters (DSR) approved under MSE-CDP

SN Name of Cluster Location
1. Paint, Enamel & Varnish Cluster Thane
2. Herbal, Ayurvedic and Cosmetic Cluster Palghar, Thane
3. Ganesh Idols Cluster Pen, Raigad
4. Mango Processing Cluster Ratnagiri
5. Cashew Processing Cluster Sindhudurg
6. Raisin Making Cluster Sangli
7. Textile (Readymade Garments) Cluster Vita, Sangli
8. Kolhapuri Chappal Cluster Kolhapur
9. Silver Ornament Cluster Vita, Sangli
10. Textile Cluster Ichalkaranji, Kolhapur
11. Jaggery Cluster Kolhapur
12. Printing Cluster, Udgir Latur
13. Raisin Making Cluster Nashik
14. Paithani Saree Cluster Yeola, Nashik
15. Auto & Engineering Cluster Ahmednagar
16. Toy Cluster Mumbai
17. Leather Goods and Allied Products Cluster Mumbai
18. Automobile Cluster Aurangabad
19. Printing Cluster Aurangabad
20. Readymade Garments Cluster Nagpur
21. Fly Ash based Cluster Chandrapur
22. Bamboo Mats and Articles Cluster Chandrapur
23. Printing Cluster, Hadpsar Pune
24. Rice Mill Cluster, Armori Gadchiroli
25. Textile Cluster Shirpur, Dhule
26. Rice Mill Cluster Chandrapur
27. Bamboo Articles Cluster Gadchiroli
28. Textile Cluster Malegaon, Dist. Nashik
29. Dal Mil Cluster Nagpur
30. General Engg. & Allied Cluster Bhosari, Pune
31. Terry Towel Cluster Solapur
32. Turmeric Cluster Sangli
33. Kokum Processing Cluster Kudal, Dist. Sindhudurga
34. Gold Ornament Cluster Jalgaon
35. Engineering Cluster Jalgaon
36. Tiny General Engineering & Allied Industries Cluster Aurangabad
37. Textile Cluster Navapur, Dist. Nandurbar
38. Cotton Fabric Cluster Hatkanagle, Dist. Kolhapur
39. Engineering Cluster Yadrav, Kolhapur
40. Rice Mill Cluster, Ramtek Nagpur
41. Auto & Engineering Cluster Nagpur
42. Textile Cluster, West Vidarbha Nagpur

Eligibility

Minimum 20 Micro, Small working units in same or similar sector located within an identifiable and as far as practicable, contiguous area.

Statistics

The Year wise release of GoI grants under MSE-CDP is as below (₹ in Lakhs):

SN Year Programme & Purpose GoI Grant Release
1. 2008-2009 15 Cluster projects proposal for DSR preparing 20.25
2. 2009-2010 11 Cluster projects proposal for Soft Intervention programme 57.455
3. 2009-2010 3 Cluster projects proposal for DSR Preparing 6.75
4. 2010-2011
2 Cluster projects proposal for DSR preparing 1.69
1 Cluster projects proposal for Soft Intervention Programme 7.20
2 Cluster projects proposal for CFC establishment 708.00
5. 2011-2012
4 Cluster projects proposal for DSR & SI Programme 25.015
2 Cluster projects proposal for CFC establishment 874.50
6. 2012-2013
1 Cluster projects proposal for Soft Intervention Programme 7.40
7. 2013-2014
1 Cluster projects proposal for CFC Completion 105.974
1 Cluster projects proposal for CFC establishment 535.98
1 Cluster projects proposal for DSR preparing 1.85
1 Cluster projects proposal for Soft Intervention Programme 7.42
4 Cluster projects proposal for Soft Intervention Programme 32.84
8. 2014-2015 6 Cluster projects proposal for CFC establishment 2522.37
9. 2015-2016
6 Cluster projects proposal for CFC Completion 2251.32
1 Industrial Infrastructure Development Project 200.00
3 Cluster projects proposal for Soft Intervention Programme 19.91
10. 2016-2017 (upto Oct-2016) 5 Cluster projects proposal for CFC establishment 2753.13
Total GoI Grant Release 10543.75

The Year wise final approval of cluster projects are as below (₹ in Crores):

SN Year Name of Cluster Approved Project Cost GOI contribution
1. 2010-2011
Garment Cluster, Vita, Sangli 09.10 06.82
Raisin Making Cluster, Sangli 07.08 04.96
Fly Ash Cluster, Chandrapur 15.37 13.50
2. 2011-2012
Textile Cluster, Shirpur, Dhule 14.23 09.96
Garment Cluster, Nagpur 15.91 13.39
3. 2012-2013
Ichalkaranji Textile Cluster, Kolhapur 16.57 12.70
Textile Cluster, Malegaon, Nashik 15.84 11.96
Dal Mill Cluster, Nagpur 16.27 10.03
4. 2013-2014
Auto & Engineering Cluster, Ahmednagar 15.23 10.21
General Engineering & Allide Cluster, Bhosari, Pune 15.29 13.43
Mango Processing Cluster, Ratnagiri 15.03 11.39
5. 2014-2015
Turmeric Cluster, Sangli 15.50 13.49
Mahasainik Industrial Estate Cluster, Pune 8.18 6.54
4. 2015-2016
Textile Cluster Navapur, Nandurbar 15.93 10.50
Terry Towel Cluster, Solapur 17.91 12.91
Cotton Fabric Cluster, Kolhapur 16.74 12.00
Total 230.18 173.79

Government of Maharashtra vides GR No. SME-2009/(229)/Ind-7, dated 09/06/2010 and G.R. dt. 22/10/2010 & dt. 02/06/2015 has supported these cluster projects approved by Government of India (under MSE-CDP) by contributing 10% as a State Share which will enhance further project viability

List of Cluster projects supported with 10% State Govt. grant.

SN Cluster Project (Programme)10% contribution of State Govt. during installation of CFC Year GoM Grant Release (Rs.in Lakh)
1. Garment Cluster, Vita, Sangli 2010-2011 53.88
2. Sangli Grape processing Cluster, Sangli
2010-2011 42.53
2011-2012 28.36
3. Textile Cluster, Malegaon, Nashik
2013-2014 60.00
2014-2015 60.00
2015-2016 30.00
4. Dal Mill Cluster, Nagpur
2013-2014 57.584
2015-2016 57.58
5. Powerloom Cluster, Shirpur, Dhule
2013-2014 56.924
2014-2015 42.693
2016-2017 42.693
6. Auto & Engineering Cluster, Ahmednagar
2015-2016 60.00
2015-2016 60.00
2016-2017 29.75344
Total 681.99744

GRs and Notifications
GoI Modified Guidelines MSE-CDP - 10.02.2010 View Details
Revised guidlines MSECDP - 27.07.2016 View Details

Frequently Asked Questions - MSE-CDP

What is the definition of the Industrial Cluster?

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

What are the important schemes of Cluster Development Programme, especially for Micro & Small Enterprises? Please specify the Ministry / Department.

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)
What is the eligibility criterion of MSE-CDP?

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.

What are the benefits available under MSE-CDP?

The benefits under MSE-CDP are as below:

  1. To conduct Soft Intervention (SI) Programme:
  2. 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%.

  3. Hard Intervention (Common Facility Center (CFC)):
  4. The GoI grant will be restricted to 70% of the cost of project of maximum ₹ 15.00 Crores.

  5. GoI grant will be 90% for clusters with more than 50% Micro/Village/Women/ SC/ST entrepreneurs.
Which office shall be approached to initiate the cluster proposal?

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

Is there is any requirement of existing formal association / group to initiate cluster project?

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.

Which are the main programmes that are being implemented in cluster development programmes?

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

If the new entrepreneurs can join the cluster programmes?

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

What is SPV? What is the purpose of SPV?

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.

If any cash benefit is available under MSE-CDP?

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

If there is any preference / additional benefit for socially weaker category?

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

What is the general time period to complete Soft Intervention and Hard Intervention (CFC)?
  • Soft Intervention : Limited to 18 months
  • Hard Intervention (CFC) : Two years from the date of issue of Final approval order to the project
What is the mechanism for the procurement of CFC equipment?

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.

What is the shareholding pattern of SPV?

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

What is the minimum contribution of stakeholders (SPV members) required under the MSE-CDP?

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

Which are the authorities for final approval of cluster projects under MSE-CDP?

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.

Content owned by Directorate of Industries, Government of Maharashtra. Last Updated On: 11.02.2016