The government has approved new guidelines for the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) for implementation during the 15th Finance Commission cycle – 2021-26, informed the MSME ministry. The scheme aims at enhancing the competitiveness and productivity of micro and small enterprises by undertaking certain interventions.
The interventions include setting up common facility centres and infrastructure development.
Also Read: The creator economy is helping support small businesses: Sidharth Rawat, Exly
According to the guidelines, the central government’s grant for the development of Common Facility Centres (CFCs) will be restricted to 70 per cent of the cost of the project from Rs 5 crore to 10 crore and 60 per cent of the cost of the project from Rs 10 crore to Rs 30 crore.
In case of north-east and hill states, island territories and aspirational districts, the government’s grant will be 80 per cent of the cost of the project from Rs 5 crore to Rs 10 crore and 70 per cent of the cost of the project from Rs 10 crore to Rs 30 crore, the ministry said in a statement.
Also Read: NBFCs are critical for small business expansion
For infrastructure development, it said the central government grant will be restricted to 60 per cent of the cost of the project from Rs 5 crore to Rs 15 crore for setting up of a new industrial estate/flatted factory complex, while the grant will be 50 per cent of the cost of the project from Rs 5 crore to Rs 10 crore for upgradation of existing industrial estate/ flatted factory complex.