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

The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Clustering of units also enables providers of various services to them, including banks and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises.

Objectives of the Scheme:

(i) To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc.

(ii) To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc.

(iii) To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.

(iv) To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc).

Scope of the scheme:

(i) Diagnostic Study

(ii) Soft Intervention

(iii) Setting up of Common Facility Centres (CFCs)

(iv) Infrastucture Development (Upgradation / New)

Cost of Project and Govt of India Assistance:

(i) Diagnostic Study - Maximum cost Rs. 2.50 lakhs.

(ii) Soft interventions - Maximum cost of project Rs. 25.00 lakh, with GoI contribution of 75% (90% for Special Category States and for clusters with more than 50% women/micro/village/SC/ST units).

(iii) Hard interventions i.e setting up of CFCs – maximum eligible project cost of Rs. 15.00 crore with GoI contribution of 70% (90% for Special Category States and for clusters with more than 50% women/micro/village/SC/ST units) .

(iv) Infrastructure Development in the new/ existing industrial estates/areas.Maximum eligible project cost Rs.10.00 crore, with GoI contribution of 60% (80% for Special Category States and for clusters with more than 50% women/micro/SC/ST units).

How to approach :

Online Applications are only considered with effect from 01-04-2012. Hard copy of Applications needs to be sent through State Govts or their autonomous bodies or field institutes of Ministry of MSME ie. MSME-DIs. The proposals are approved by the Steering Committee of the MSE-CDP.

Modified Guide lines of MSE-CDP & Circulars:

Modification in the Guidelines of Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) - regd.

On-going CFC under MSE-CDP.

On going ID Centres under MSE-CDP.

Office Memorandum of MSE-CDP.

Modified Guidelines of MSE-CDP.

Online Applicatios Under MSE-CDP Letter.

Mandatory Information Format in DSR of MSE-CDP.

Format of GFR 19-A under Rule 212(1) for Utilization Certificate.

Verification of documents prior to forwarding the proposals under MSE-CDP.

Ongoing , Completed Projects under MSE-CDP:

List of the Diagnostic Study Report (DSR) taken under MSE-CDP.

List of the Soft Interventions taken under MSE-CDP.

List of the Infrastructure Development taken under MSE-CDP.

List of the Common Facility Centre (Hard Interventions) taken under MSE-CDP.

Progress Report
Cluster Development: A total of 964 interventions in various clusters spread over 29 States and 1 UTs in the country have so far been taken under the programme.

i) Total clusters taken

964(till date)

Ongoing clusters


- Diagnostic Study


- Soft interventions


- Hard interventions (CFC)


Completed Clusters


- Diagnostic Study


- Soft interventions


- Hard interventions (CFC)


ii) Total infrastructure projects taken


- Ongoing projects


- Completed


Statement of funds sanctioned under MSE-CDP from 2011-12 to 2015-16 and 2016-17 (up to 10.09.2016).



Expenditure (Rs. Crore)


80.00 / 44.00



32.00 / 49.26



53.00 / 68.50



93.00 / 84.60



100.00 / 102.95




50.37 (Up to 10 sept)

Sample DSR , DPR , Check List:

Check List under MSE-CDP.

Compliance Chart for CFCs & IDs under MSE-CDP Scheme.

Sample Diagnostic Study Reports

Sample Detailed Project Reports.

CFC, ID, Picture, Video, Success Stories

Details Of Steering Committee Meeting For Micro & Small Enterprises Cluster Development Programme

PARCHAM - Prospects & Activities Reflecting Cluster's Highlights and Achievements of MSE-CDP