Updated MSE-CDP 2024-25: Key Changes for India's MSME Growth

Introduction

The Ministry of MSME has released updated guidelines for the MSE-CDP for 2024–25, with the aim of fostering growth in India's Micro, Small, and Medium Enterprises (MSME) sector. The updates focus on increased funding caps, inclusion of plug-and-play factories, and green manufacturing incentives. This guide provides key information on these updates.

Key Updates Under MSE-CDP 2024–25

1. Increased Funding Caps

Financing has been raised significantly throughout various components, with different rates being applicable for general and special areas. Below are the details:

Component	General Regions	Special Regions
CFCs (₹5–15 Cr)	70% grant	80% grant
CFCs (₹15–50 Cr)	60% grant	70% grant
New Industrial Estates	70% grant (₹5–20 Cr)	80% grant (₹5–20 Cr)

Special Regions include North Eastern States, Hill States, Aspirational Districts, LWE-affected districts, and Island Territories.

2. New Components for Modern Clusters

The updated guidelines introduce some new schemes to promote advanced manufacturing:

Plug & Play Factories:
- These are already assembled factories with basic utilities. Governments can make use of a 60% grant for their construction.
Green Manufacturing:
- ZED 2.0 Subsidy: Organizations adopting solar power or waste recycling can obtain up to ₹20 lakh.
Digital CFCs:
- Grants up to ₹2 Cr are provided for the integration of IoT and AI technologies.

3. Eligibility and Compliance

The following requirements have to be met to be eligible for funding:

SPV Requirements: A Special Purpose Vehicle with a minimum of 10 members belonging to the MSME segment should have an equity contribution of 10–20%.
Priority Sectors: Biomedical devices, agro-processing, and electric vehicle projects have priority.
Application Process: Applications should be submitted through the MSME Samadhaan Portal.

How to Apply

Register on the UDYAM Portal.
Form an SPV with required MSE members.
Submit the Detailed Project Report (DPR) through the State Government or MSME-DI.

FAQs

Q: What is the maximum grant for a ₹50 Cr CFC in Assam?
A: The maximum grant that a ₹50 Cr CFC in Assam can receive is 70% of the amount, i.e., ₹35 Cr for Special Regions.
Q: Is funding accessible to flatted factory complexes?
A: Yes, they are eligible, with an additional 10% grant available for green technology adoption.
**Q: Can FPOs apply?
A: Yes, FPOs can now apply for the funding under the new guidelines.

Conclusion

The updated MSE-CDP guidelines of 2024–25 present immense opportunities for India's MSME sector with more choices for financing and innovation-led manufacturing initiatives. Knowing the changes and following the process of applying, MSMEs can make use of funds available for growth and sustenance.