The programme was launched by the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India (GoI). Cluster can be defined as a number of enterprises that practice and produce the same products and services.
The main characteristics of the enterprises in a cluster are mentioned below:
- They have similar opportunities and challenges.
- The channels for communication under a cluster are similar.
- Marketing and technological strategies are the same.
- Pollution control, energy consumption, quality control and testing, methods of production, etc., are similar.
Objectives of the Micro & Small Enterprises – Cluster Development Programme
Given below are the main objectives of the Micro & Small Enterprises – Cluster Development Programme:
- Common facility centres to be set up for complementing production processes, effluent treatment, material depot, training centres, testing, etc.
- Industrial facilities in existing or new industrial areas must be created or upgraded. Flatted Factory Complexes must also be set up.
- By forming consortia, self-help groups, etc., to provide a common supportive action for MSEs.
- Improving access to capital, market access, skills and quality, technology, etc., in order to help in supporting sustainability.
Components of the Micro & Small Enterprises – Cluster Development Programme
The components of the MSE-CDP are mentioned below:
- Development of infrastructure: Improvement of technological backup services, common service facilities, marketing outlets and materials storage, banks, roads, pollution control facilities and drainage, telecommunication, water, and power distribution network for MSEs at existing and new industrial areas are some of the infrastructural facilities that come under this project. The Indian Government will provide 60% of Rs.10 crore, which is the cost of the project. However, the Indian Government will provide 80% of the cost of the project in North-Eastern and Hill States and industrial areas that consist of more than 50% SC/ST, women-owned, and micro units.
- Establishment of Common Facility Centres: Setting up Common Facility Centres (CFCs) such as Research & Development (R&D) Centres, Common Logistics Centre, Training Centre, Testing Facilities, Design Centres, Common Production or Processing Centres, etc. 70% of the cost of the project subject to a maximum of Rs.15 crore will be provided by the government towards the project. However, for CFCs in North-Eastern and Hill States, the government will provide 90% of the cost of the project.
Status of the projects
|Financial contribution with a maximum of Rs.15 crore (Rs. Crore)||Physical numbers|
Status of Micro & Small Enterprises – Cluster Development Programme interventions
The table given below shows the physical status of CFCs and Infrastructure Development (ID) projects as on 31 March 2019:
|States and Union Territories||Common Facility Centres (CFCs)||Infrastructure Development (ID) Projects||Total (Approved CFCs plus Approved IDs)|
|CFCs that have been approved||Ongoing CFCs||Completed CFCs||ID Centres that have been approved||Ongoing ID Centres||Completed ID Centres|
|Daman and Diu||0||0||0||0||0||0||0|
|Jammu & Kashmir||1||0||1||7||3||4||8|
|Andaman and Nicobar Islands||0||0||0||0||0||0||0|
|Dadra and Nagar Haveli||0||0||0||0||0||0||0|
Procedure to apply
Applications for the MSE-CDP can be submitted online. Hard applications must be sent via State Governments, or Ministry of MSME field institutes, or autonomous bodies of the State Government. However, the Steering Committee of the MSE-CDP must approve the applications for them to be processed.