Can MSE-CDP unlock the Value Potential of Micro and Small Enterprises ?

The key objectives of the MSE-CDP (Micro and Small Enterprises - Cluster Development Programme) scheme can be summarised as follows,

1.    Enhance sustainability, competitiveness, and growth of MSEs for,

a.    Improvement of technology

b.    Enhancement of skills & quality

c.     Better market access

d.    Build capacity of MSEs and startups for common supportive actions through:

e.    Integration of self-help groups (SHGs)

f.     Formation of consortia

g.    Collaboration with district industry associations

h.    Create and upgrade infrastructural facilities in new and existing industrial areas/clusters of MSEs.

2.    Set up Common Facility Centres (CFCs) in industrial areas for:

a.    Testing

b.    Training centres

c.     Raw material depots

d.    Effluent treatment

e.    Complementing production processes

f.     Promote green and sustainable manufacturing technology within clusters to:

g.    Facilitate the switch to sustainable and green production processes and products.

Annexure 1 and Annexure 2 of the scheme guidelines is as follows,

Annexure-1

Admissible items under Setting up of Common Facility Centres (CFCs)

i.        Common Production / Processing Centre (for balancing/correcting / improving production line that cannot be undertaken by individual units).

ii.       Common Recycling/Resource Recovery Plant.

iii.       Industry        4.0     and     its       Learning        Facilities,       Additive         Manufacturing          Facilities,       Digital Infrastructure.

iv.       Design/Incubation Centres.

v.       Testing and Quality upgradation Facilities/Product Standards Development.

vi.       Packaging Facilities.

vii.      Training Centre / Skill Upgradation Facilities.

viii.     R&D Centres.

ix.       Effluent Treatment Plant.

x.       For waste management, disposal and sustainable handling of biodegradable wastes in industrial areas, biogas / Bio-CNG projects will also be supported.

xi.       Common Logistics Centre.

xii.      Common Raw Material Bank.

xiii.     Plug & Play Facility.

xiv.     Common Renewable Energy Generation (Solar, Wind, Bio) and Energy Management equipments.

xv.      Safety and Disaster Risk Reduction equipments.

xvi.     Facilities relating to linkages Backward / Forward linkages for value addition in bi-product / waste of cluster units.

xvii.     Any common facilities which will improved competitiveness and productivity of the cluster units.

xviii.    Export Promotion Facilities for FPO such as for processing, storage (cold chains), Pack Houses, testing and packaging.

xix.     Common Facilities for services sector such as automobile, tourism, hospitality, health & medical, farm, Dry cleaner, Testing Laboratories, repair and maintenance or any sector prioritize by Government of India / State Government.

xx.      CFC for Greenfield clusters for holistic developments of MSME sector.

Annexure-2

Admissible items under Infrastructure Development (ID) Projects

i.        Boundary wall / fencing

ii.       Laying roads

iii.       Water supply including overhead tanks, and pump houses

iv.       Water harvesting

v.       Drainage

vi.       Power (Sub-Station and distribution net-work work including Street light etc),

vii.      Others (Sanitary Conveniences etc.)

viii.     Flatted Factory Complex

ix.       Common Effluent Treatment

x.       Common Renewable Energy Generation (Solar, Wind, Bio)

xi.       Common Utilities System (Steam, Compressed Air/Gas, Cooling)

xii.      Raw Material Storage

xiii.     Common Water Recovery Plant

xiv.     Safety & Disaster Risk Reduction Cell

xv.      Latest Technological Backup Services in new industrial (multi-product) areas/estates or existing Industrial Areas/Estates/ Clusters.

xvi.     ID projects for Greenfield clusters for holistic developments of MSME sector

There shall be a Special Purpose Vehicle (SPV) for the projects for CFC, which would be a Company registered under Section 8 of the Company Act except for the State of Sikkim. For Sikkim, SPV can be a Society registered under the Societies Registration Act, or a Co-operative Society under an appropriate statute. Farmer Producer Organisation (FPO)/ Farmer Producer

Company (FPC) registered under Section 8 of the Company Act with minimum number of MSEs as their member as provisioned in the guidelines of the Scheme shall also be allowed as the SPV.

1. General Funding Pattern:

Components	Total Project Cost	Government of India (%)	State Government (%)	SPV (%)
a.1 Common Facility Centre (CFC)	₹5 crore to ₹10 crore	70%	20%	10%
a.2 Common Facility Centre (CFC)	₹10 crore to ₹30 crore	60%	20%	20%
b.1 Infrastructure Development - New	₹5 crore to ₹15 crore	60%	40%	--
b.2 Infrastructure Development - Upgradation	₹5 crore to ₹10 crore	50%	50%	--

2. Funding Pattern for Special Locations (Aspirational Districts, NER, Hill States, and Islands):

Components	Total Project Cost	Government of India (%)	State Government (%)	SPV (%)
a.1 Common Facility Centre (CFC)	₹5 crore to ₹10 crore	80%	15%	5%
a.2 Common Facility Centre (CFC)	₹10 crore to ₹30 crore	70%	15%	15%
b.1 Infrastructure Development - New	₹5 crore to ₹15 crore	70%	30%	--
b.2 Infrastructure Development - Upgradation	₹5 crore to ₹10 crore	60%	40%	--

The detailed process of who will be the Implementing Agency for this Scheme (MSE-CDP), the constitution of State Level Steering Committee (SLSC), National Project Approval Committee (NPAC) and Project Approval Procedure and subsequent monitoring has been mentioned in the guidelines.

So, it for the MSE Industries Owners and their Association collectively to identify what facilities that is needed in their cluster and actively engage with other implementing agencies for on ground implementation of such scheme for tangible growth of existing Industrial Clusters.