State Mini Cluster Scheme

Haryana's State Mini Cluster Development Scheme: Fostering Micro & Small Enterprise Growth

Introduction :

The Haryana Government has implemented the "State Mini Cluster Development Scheme" under the Haryana Enterprises & Employment Policy, 2020.This scheme is focused on enhancing the productivity and competitiveness of Micro & Small Enterprises (MSEs) through a cluster development approach. Clusters are identified as groups of enterprises within a contiguous area producing similar products or services, facing common challenges, and sharing similar production and marketing strategies.

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Objectives and Quantum of Assistance :

The scheme aims to support MSEs by addressing common issues such as technology improvement, skill development, quality enhancement, and market access. It also focuses on establishing common facility centers (CFCs) for testing, design, R&D, and training, among other supports. Financially, the scheme offers up to 90% state funding for project costs up to Rs. 5 crores, with the remaining10% to be contributed by the Special Purpose Vehicle (SPV) formed by the cluster members.

Eligibility Criteria : 

Eligible participants include groups of MSEs involved in similar industrial activities within a specific area. These enterprises must have filed an Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM). The SPV, a private limited company formed for leveraging benefits under this scheme, must comprise MSE units as defined in the scheme's assistance clause.

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Application and Documentation :

Applications for benefits under the scheme must be submitted through the local District MSME Centre to the Directorate of MSME, Haryana. The application process includes the submission of a Diagnostic Study Report (DSR) outlining the cluster's strengths, weaknesses, opportunities, and threats, and a detailed action plan for cluster development.

Procedure for Disbursement and Appeals :

Funding disbursement follows the completion of specific project milestones, with funds released in two or three tranches based on the project's grant size. A thorough documentation and approval process involving physical inspections and validation of utilization certificates by designated authorities ensures compliance with the scheme's guidelines.

Penalties and Recourse :

Any misuse of funds or failure to comply with the scheme's conditions may lead to financial penalties, including the repayment of disbursed funds with interest. Additionally, the SPV may face legal actions and potential recovery of funds as arrears of land revenue.

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Conclusion :

The "State Mini Cluster Development Scheme" is a strategic initiative by the Haryana Government to build capacity and enhance the sustainability of MSEs by providing shared facilities and fostering cooperative development efforts. Through this scheme, the state aims to promote a collaborative approach to tackle the common challenges faced by MSEs, thereby improving their competitive edge in both domestic and international markets.

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Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting provides expert services to assist enterprises in Haryana with the 'State Mini Cluster Development Scheme' under the Haryana Enterprises &Employment Policy, 2020. They guide businesses through understanding the scheme's eligibility requirements, preparing and submitting applications, and ensuring compliance with the scheme’s guidelines to maximize financial incentives for the development of micro and small enterprise clusters.

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Impact of the Scheme on Haryana's Industrial Growth :

The scheme bolsters Haryana's industrial sector by promoting the development of micro and small enterprises through cluster development. It focuses on enhancing productivity and competitiveness by addressing common challenges such as technology, market access, and skill improvement. By facilitating the creation of common facility centers, the scheme helps these enterprises improve their production processes and efficiency, thus fostering economic growth and sustainability.

Future Prospects and Enhancements :

Future enhancements could include expanding the scheme to cover more industries, increasing the funding cap to allow for larger projects, and extending the scheme’s operational period to provide ongoing support. Furthermore, integrating this scheme with other regional development plans could amplify its impact, driving broader economic development and innovation in the state.

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FAQs?

What is the State Mini Cluster Development Scheme?

This scheme is designed to support the sustainable growth of micro and small enterprises by facilitating the development of clusters that provide shared facilities and services.

Who is eligible for this scheme?

Groups of micro and small enterprises operating in a similar sector or region, which have filed Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum(HUM), can apply. These groups must form a Special Purpose Vehicle (SPV) to manage the cluster.

How does an enterprise apply for this scheme?

Enterprises must submit a preliminary application through the local District MSME Centre, which will be forwarded with recommendations to the Directorate of MSME for approval.

What are the financial benefits of participating in this scheme?

The scheme provides up to 90% of project costs for creating common facility centers, with a maximum government contribution of Rs. 5 crores per project.

What happens if incorrect information is provided in the application?

Misrepresentations or incorrect information can lead to severe penalties, including the requirement to repay the grant with interest, legal actions, and potential exclusion from future state incentives.

How does Rapid Consulting assist in this process?

Rapid Consulting assists enterprises throughout the application process, from conducting diagnostic studies to facilitating the establishment of SPVs and ensuring that all compliance and reporting requirements are met efficiently. They help streamline the administrative burden and enhance the chances of successful funding and project implementation.

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Target Sectors in Haryana :

The Haryana State Mini Cluster Development Scheme aims to enhance the productivity and competitiveness of Micro & Small Enterprises (MSEs) through a cluster development approach. This scheme supports the formation of clusters of MSEs that produce similar products or services and share common technology, marketing strategies, and challenges. The goal is to foster an environment that promotes shared resources like common facility centers for R&D, training, and effluent treatment, which contribute to the collective growth and sustainability of MSEs.

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Eligibility for Existing Businesses and New Ventures :

Eligible entities for this scheme are groups of MSEs located within a specific area that have filed an Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM). These clusters must involve at least 10 MSE members to qualify for state government aid and must set up a Special Purpose Vehicle(SPV) as a private limited company to manage the common facilities.

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Integration with Other Subsidies and Incentives :

The scheme is designed to integrate with the broader objectives of the Haryana Enterprises & Employment Policy, 2020, providing substantial financial assistance with up to 90% of project costs covered by the state. This integration aims to reduce production costs, enhance market access, and improve overall industry standards within the state.

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Application Process :

MSEs must apply through their SPV, submitting a preliminary application to the Joint Director/Deputy Director of the District MSME Centre. The application process includes a diagnostic study to assess the cluster's needs, followed by the formulation of a Detailed Project Report (DPR). Approval processes are streamlined to ensure efficient setup and operationalization of the common facility centers.

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Geographical Preferences in Haryana :

While the scheme is applicable statewide, it encourages the development of MSE clusters in identified regions, promoting balanced economic growth across different parts of the state. The focus is on areas where MSEs can benefit most from shared resources and collective growth strategies.

Summary :

The State Mini Cluster Development Scheme is a strategic initiative by the Haryana government to bolster the small and micro enterprise sectors by promoting collaborative growth and resource sharing. By fostering cluster environments and supporting common infrastructure development, the scheme aims to enhance the competitiveness and sustainability of MSEs throughout Haryana.

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Why Choose Rapid Consulting?

Specialized Expertise:

Our team at Rapid Consulting boasts in-depth knowledge of subsidy scheme, 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 comprehensive assistance includes: 

Consultation and Assessment:

We conduct detailed consultations to assess the feasibility and eligibility of establishing CFCs for the group of micro and small units. Our experts evaluate the scope and potential benefits of the project.

Documentation Preparation:

Our team assists in preparing all necessary documentation for the subsidy application process. This includes compiling project proposals, financial statements, and other relevant paperwork according to scheme guidelines.

Application Management:

We manage the entire application process on behalf of clients, ensuring accurate completion of forms and timely submission of documents to the relevant authorities. We streamline the process to expedite approval.

Negotiation and Follow-up:

Our negotiators engage with government agencies to secure favorable terms and expedite the subsidy approval process. We advocate for optimal subsidy rates and terms to benefit the group of micro and small units.

Subsidy Disbursement:

Upon approval, we facilitate the disbursement of funds to clients. We ensure prompt processing of subsidies and provide assistance in navigating administrative procedures related to disbursement.

Post-Subsidy Support:

We offer ongoing support post-subsidy disbursement, guiding clients on utilizing funds effectively and monitoring project progress. Our services include compliance monitoring and addressing any issues that may arise during the subsidy period.

In summary, Rapid Consulting provides comprehensive assistance in accessing capital subsidies for establishing Common Facility Centers in Haryana. Our services cover consultation, documentation preparation, application management, negotiation, subsidy disbursement, and post-subsidy support, ensuring clients maximize benefits while complying with regulatory requirements.

How to Reach Us:

Website :

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

Direct Contac t:

Call us at +91-9467248028/9416506136or email info@rapidconsulting.in to 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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