corporate law

New Guidelines for Micro & Small Enterprises Development Programme (MSE-CDP)

New Guidelines for the Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

The Government has recently approved new guidelines for the Micro & Small Enterprises Cluster Development Programme (MSE-CDP) to be implemented during the 15th Finance Commission Cycle, covering the period from 2021-22 to 2025-26. This initiative is designed to enhance the competitiveness and productivity of Micro & Small Enterprises (MSEs) through various targeted interventions.

Key Interventions

The MSE-CDP emphasizes two primary areas of support:

1. Common Facility Centers (CFCs)

  • Grants for CFC Projects:
    • The central government will provide up to 70% of the project cost for amounts ranging from ₹5.00 crore to ₹10.00 crore.
    • For project costs between ₹10.00 crore to ₹30.00 crore, assistance will be 60% of the project cost.
  • In Special Regions:
    • For North Eastern (NE) and Hill States, Island territories, and Aspirational Districts, the grant increases to 80% for projects costing ₹5.00 crore to ₹10.00 crore and 70% for projects from ₹10.00 crore to ₹30.00 crore.
  • Projects Exceeding ₹30.00 Crore:
    • Projects with costs over ₹30.00 crore will be considered, but the government assistance will still reference a maximum eligible project cost of ₹30.00 crore.

2. Infrastructure Development

  • Grants for New Industrial Estates/Flatted Factory Complexes:
    • The central government grant will cover 60% of projects costing between ₹5.00 crore to ₹15.00 crore for setting up new facilities.
  • Upgradation of Existing Facilities:
    • A 50% grant will be available for upgrading existing Industrial Estates/Flatted Factory Complexes, within the cost range of ₹5.00 crore to ₹10.00 crore.
  • Special Region Grants:
    • In NE and Hill States, Island territories, and Aspirational Districts, grants will be higher, at 70% for new setups and 60% for upgrades.
  • Projects Over ₹10.00 Crore/15.00 Crore:
    • Infrastructure projects exceeding these thresholds can also apply, but assistance will again reference the maximum eligible project costs of ₹10.00 crore or ₹15.00 crore, respectively.