MSE-CDP Scheme

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

Introduction :

The Micro and Small Enterprises Cluster Development Program (MSE-CDP) is a scheme facilitated by the Government of India to foster sustainable and competitive growth of micro and small enterprises by addressing common issues like technology improvement, skill enhancement, and market access. The scheme aims to build capacity and facilitate supportive actions through various entities such as self-help groups, consortia, and industry associations.

Objectives :

MSE-CDP seeks to Enhance the sustainability and competitiveness of MSEs, Build capacity and support common actions, Create or upgrade infrastructural facilities in new or existing industrial areas or clusters.

Establish Common Facility Centers (CFCs) for testing, training, raw material depot, effluent treatment, and complementing production processes, Promote green and sustainable manufacturing technologies to help units adopt eco-friendly production processes and products.

Quantum of Assistance :

The program offers a grant that varies depending on the project cost and the region. For example, the grant can cover:

Funding Pattern:

For Common Facility Centers (CFCs):

‍Projects costing between Rs. 5 crores to Rs. 10 crores receive a 70% subsidy from the Government of India, 20% from the state government, and 10% must be contributed by the SPV.

Projects between Rs. 10 crores to Rs. 30 crores are funded at 60%by the Government of India, 20% by the state government, and 20%by the SPV.

In special regions like NE & Hill States, Island territories, and Aspirational Districts, the subsidy increases slightly, with the Government of India contributing up to 80% for projects costing between Rs. 5 crores to Rs. 10crores.

Infrastructure Development:

New developments receive 60% of project costs from Rs. 5 crores to Rs. 15 crores and 50% for upgradations from Rs. 5 crores to Rs. 10crores.

Enhanced subsidies are also provided for special regions, similar to the CFC funding pattern.

Conditions for Subsidy:

The subsidy is provided in instalments based on progress and utilization reports. Any cost escalation beyond the sanctioned amount must be borne by the SPV or the state government. The subsidy is contingent on the SPV not using other central government grants for the same project.

Utilization of Funds:

Funds are to be used strictly according to the project specifics approved under the MSE-CDP. The SPV is required to furnish utilization certificates, audited by statutory auditors, ensuring that funds are used solely for the intended purposes.

Special Provisions:

Projects in designated areas such as Aspirational Districts or regions with challenging geographies receive higher subsidies to stimulate development. Specific terms include the timely completion of projects and adherence to guidelines, with provisions for penalties in case of delays or misuse of funds.

Eligible Activities :

The scheme supports the setting up of CFCs and infrastructure development in industrial estates. Eligible activities for CFCs include testing, training centers, raw material depots, and effluent treatment facilities. Infrastructure development may involve the setup of new industrial estates or the upgrading of existing ones with amenities like roads, drainage, power, and water supply.

Implementation Period :

Projects must be completed within a specified period, usually within 18months from the date of the approval order, ensuring timely execution and utility of the developed infrastructure.

Eligibility Criteria :

Eligible applicants include state government organizations, institutions of the Ministry of MSME, national and international institutions engaged in MSE development, and other approved agencies. The program emphasizes integrating various stakeholders within the MSE sector to ensure comprehensive development.

Application and Documentation :

Applications require detailed project reports and must be submitted through appropriate channels as specified in the guidelines. The required documentation often includes feasibility studies, land documents, and other statutory compliances to ensure the project's viability and compliance with governmental regulations.

Procedure for Disbursement and Appeals :

Funds are disbursed in phases based on the project's progress, with clear stipulations for the release of each tranche. There is a structured appeals process for grievances related to funding decisions, ensuring transparency and accountability in the management of the scheme.

Conclusion :

MSE-CDP is designed to boost the micro and small enterprises sector by enhancing infrastructure and support facilities, promoting sustainable practices, and improving the overall ecosystem for MSE. Through targeted financial support and capacity-building initiatives, the program aims to significantly contribute to the sector's growth and sustainability.

Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting could provide expert services to aid entities in establishing infrastructure for MSE clusters under the MSE-CDP scheme. They can guide stakeholders such as government departments, PSUs, NGOs, cooperatives, SHGs, private companies, and FPOs through the scheme's eligibility requirements, preparing and submitting applications, and ensuring compliance with the scheme’s guidelines. This support aims to maximize financial incentives and ensure efficient project implementation.

Impact of the Scheme on Industrial Growth :

The MSE-CDP scheme aims to boost the micro and small enterprises sector by facilitating the creation and upgrade of industrial infrastructure and Common Facility Centers (CFCs). These initiatives are intended to enhance the sustainability, competitiveness, and growth of MSEs by addressing common issues such as technology improvement, skills, quality, and market access. By providing these facilities, the scheme encourages small industries to become more efficient and competitive, leading to increased productivity and employment opportunities.

Future Prospects and Enhancements :

Future enhancements could include increasing the types and number of facilities supported, raising financial support limits, and expanding eligibility criteria to cover more MSE. Integration with other government initiatives and development programs could offer broader support and accelerate industrial growth in the sector.

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FAQs?

What is the Scheme for Micro & Small Enterprises Cluster Development Program (MSE-CDP)?

This scheme supports the creation and enhancement of infrastructure and CFCs for micro and small enterprises to boost their competitiveness and growth.

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Who iseligible for this scheme?

Eligible entities include government departments, PSUs, cooperatives, private sector companies, NGOs, SHGs, FPOs, and other organizations engaged in the development of the MSE sector.

How does an entity apply for this scheme?

Entities must apply online, submitting necessary documents such as detailed project reports and financial statements to demonstrate compliance with the scheme's eligibility criteria.

What are the financial benefits of participating in this scheme?

The scheme provides substantial grants, covering up to 70% of the project cost for setting up CFCs and up to 60% for infrastructure development, with higher support in certain regions.

What happens if incorrect information is provided in the application?

Incorrect or fraudulent information can lead to the cancellation of financial support and potential legal consequences.

How does Rapid Consulting assist in this process?

Rapid Consulting helps entities navigate the scheme's requirements effectively from application to final approval and implementation, ensuring avoidance of common pitfalls and efficient management of documentation and compliance requirements.

Target Sectors in India :

The Micro & Small Enterprises Cluster Development Program (MSE-CDP)by the Ministry of Micro, Small & Medium Enterprises aims to enhance the competitiveness and sustainability of micro and small enterprises. This is achieved through the development of industrial clusters that focus on commoninfrastructural facilities and technology upgradation. The scheme specifically targets clusters of MSEs involved in manufacturing, processing, or providing services, and aims to create or upgrade infrastructure facilities, establish Common Facility Centers, and promote green manufacturing technologies across India.

Eligibility for Existing Businesses and New Ventures :

Eligible entities for this program include micro and small enterprises, special purpose vehicles (SPVs) which may include institutions like MSME-DIs, NSIC, KVIC, and Coir Board, as well as state government organizations. The eligibility is broad to include a wide array of stakeholders within the MSE sector, emphasizing inclusivity and comprehensive developmental impacts on MSE at the cluster level.

Integration with Other Subsidies and Incentives:

The MSE-CDP scheme integrates with other government subsidies and financial assistance programs. It offers varying levels of government grants based on project location, with enhanced support for projects in the Northeast, Hill States, Island territories, and Aspirational Districts. This integration is designed to ensure that benefits are maximized and that projects are aligned with broader economic development strategies, particularly in underserved or strategically important areas.

Application Process :

The application process involves the submission of a detailed project proposal through an online portal, which must include elements such as of easibility report, registered land documents, and the project's economic viability analysis. The proposals are evaluated based on technical and economic criteria by a Steering Committee, ensuring that only those projects that meet stringent quality and impact criteria receive funding and support.

Geographical Preferences in India :

The scheme gives priority to projects that develop infrastructure in regions with high MSE activity or potential, with a special focus on rural and underdeveloped areas. This strategic focus is meant to promote regional industrial growth, enhance MSE competitiveness, and reduce regional disparities by ensuring that infrastructure development aligns with local industrial capacities and needs.

Why Choose Rapid Consulting?

Specialized Expertise:

Our team at Rapid Consulting boasts in-depth knowledge of subsidy schemes, ensuring you get the most out of your investment.

End-to-End Assistance:

From initial assessment to final application, we manage the entire process, making it seamless and hassle-free for your business.

Maximized Benefits:

We ensure that you fully leverage the financial incentives available, boosting your company's growth and profitability.

Our services include:

Consultationand Eligibility Assessment:

We conduct detailed consultations to understand clients' requirements and assess their eligibility for the MSE-CDP scheme. This involves evaluating project feasibility and alignment with MSE-CDP guidelines.

Documentation Preparation:

Our team assists in preparing all necessary documentation required for the subsidy application. This includes project reports, financial projections, infrastructure development plans, and other relevant information needed for submission to the implementing agencies.

Application Management:

We manage the entire application process, ensuring all documents are submitted accurately and on time. Our experts liaise with the relevant government departments or implementing agencies to streamline the submission process.

Negotiation and Follow-up:

In case of any queries or requests for additional information from the implementing agencies, we handle negotiations on behalf of our clients. We ensure prompt responses and provide any further documentation required.

Subsidy Disbursement:

Upon approval, we facilitate the disbursement of the subsidy amount to our clients. We ensure that all procedural formalities are completed smoothly for the timely release of funds.

Post-Subsidy Support:

Our services extend beyond subsidy acquisition. We provide ongoing assistance to our clients, helping them with compliance requirements, reporting obligations, and any other post-subsidy concerns. Rapid Consulting's expertise and experience in navigating the complexities of the MSE-CDP scheme aim to maximize benefits and foster the development of micro and small enterprises through infrastructure development initiatives. We are committed to supporting entrepreneurs in enhancing their competitiveness and contributing to economic growth and employment generation.

How to Reach Us ?

Website:

Visit our official website for detailed information, service offerings, and to schedule an online consultation.

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Direct Contact:

Call us at +91-9467248028/9416506136 or email info@rapidconsulting.into discuss your needs directly with our experts.

Office Visit:

Our offices are open for in-person consultations at 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001.

Here, you can meet with our consultants who can provide personalized guidance tailored to your business's specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business's financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.

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