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Renu Suresh

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Published on: Jun 24, 2026

New Guidelines of Micro & Small Enterprises Cluster Development Programm (MSE-CDP scheme)

The Government of India has issued New Guidelines for Micro & Small Enterprises Cluster Development Programm (MSE-CDP scheme). MSE-CDP scheme aims to assist the financial and infrastructural needs of the MSME sector Accordingly it provides financial succor for the Common Facility centers which in return aid the clusters of MSE units. Further, this approach of serving several bunches under the cluster development Programme is the chief tactic to enhance the productivity and stability of the MSME sector. Also Read About – MSME Samadhaan

Cluster Development Programm

Cluster Development Programme is one of the oldest schemes of the Office of Development Commissioner in the Ministry of MSME. The earlier scheme was revised in 2007 and then the last revision in 2019. The same is in supersession of the earlier issued guidelines for cluster development including subsequent clarification /orders.

New Guidelines of Micro & Small Enterprises Cluster Development Programm (MSE-CDP scheme) is the supersession of the earlier issued guidelines for cluster development including subsequent clarification.

 Objectives of the Scheme

The primary Micro& Small Enterprises Cluster Development program is explained below:
  • To enhance the sustainability, competitiveness, and growth of MSEs by addressing common issues such as improvement of technology, skills & quality, market access, etc
  • To build the capacity of MSEs and Startups for standard supportive action through the integration of self-help groups, consortia, district Industry associations, etc.
  • To create/upgrade infrastructural facilities in the new / existing Industrial Areas / Clusters of MSEs. IV.) To set up Common Facility Centres in Industrial areas (for testing, training center, raw material depot, effluent treatment, complementing production processes)
  • Promotion of green & sustainable manufacturing technology for the clusters to enable units to switch to sustainable and green production processes and products

Components of the Scheme

Components of the Scheme Micro& Small Enterprises Cluster Development Programm (MSE-CDP scheme) are as follows:

Setting up of Common Facility Centers (CFCs):

This component consists of the creation of tangible assets as Common Facility Centers (CFCs) in Industrial Estate:

Infrastructure Development (ID)

This component is for the development of infrastructure in new/existing notified Industrial Estate

Funding pattern

As per the revised guidelines, the funding pattern of projects would be as follows:

Sl.No

 Components Total Project cost Funding Pattern
Govt of India State Govt

SPV
1 Common Facility Centre Rs 5 crore to Rs 10 crore 70%   20% 10%
2 Common Facility Centre Rs 10 crore to Rs 30 crore 60% 20% 20%
3 Infrastructure development New Rs 5 crore to Rs 15 crore 60% 40%
4 Infrastructure development - Up-gradation of existing Infrastructure Rs 5 crore to Rs 10 crore 50% 50%
The funding pattern of projects located in the Aspirational Districts, NER, Hill States, and islands would be as follows:

Sl.No

 Components Total Project cost Funding Pattern
Govt of India State Govt

SPV
1 Common Facility Centre Rs 5 crore to Rs 10 crore 80%   15% 5%
2 Common Facility Centre Rs 10 crore to Rs 30 crore 70% 15% 15%
3 Infrastructure development New Rs 5 crore to Rs 15 crore 70% 30%
4 Infrastructure development - Up-gradation of existing Infrastructure Rs 5 crore to Rs 10 crore 60% 40%
Note:
  • The project for CFC with a project cost of more than Rs. 30 crores can also be considered but the GoI assistance would be calculated by taking into account the maximum eligible project cost of Rs.30 crore.
  • The project for ID with a project cost of more than Rs. 10 crore/15 crore can also be considered but the GoI assistance would be calculated by taking into account the maximum eligible project cost of Rs. 10 crore/15 crore.

Implementing Agency

The implementing agency for the Micro & Small Enterprises Cluster Development Programm (MSE-CDP scheme) is as follows:

Setting up of CFC

  • Institutions of Ministry of MSME (MSME-DIs, NSIC, KVIC, Coir Board, Technology Centres, NI-MSME, and MGIRI)
  • Organizations of State Governments
  • National and International Institutions are engaged in the development of the MSE sector.
  • Any other institution/agency approved by the Ministry of MSME

Infrastructure Development Projects

  • State / UT Governments through an appropriate State Government / UT Agency/ Integrated Industrial Park Development Agency/State Industrial Development Agency

Documents Required

The following documents will be required for placing a CFC proposal for final approval of NPAC:
  • DPR – Performa
  • Project Appraisal Report
  • Registered land documents (if in the vernacular language then English/Hindi translation)
  • SPV registration as Section 8 Company (certificate of registration along with MoA and AoA
  • Geo Tagging
  • SLSC recommendation along with minutes of meeting g.
  • Statuary Compliances h. Certificate from State Government for compliance of GFR/CVC
 The following documents will be required for placing an ID proposal for final approval of NPAC :
  • D
  • Project Appraisal Report
  • Land Documents (if in the vernacular language then English/Hindi translation)
  • Geo Tagging e
  • SLSC recommendation along with minutes of meeting
  • Statuary Compliances
  • Certificate from State Government for compliance with GFR/CVC guidelines

Period for completion of the project

The projects have to be completed within 18 months from the date of approval order of the project by NPAC Online Application Procedure for Common Facility Center (CFC) & Infrastructure Development (ID) The applicant needs to access the official website of the Cluster Development Program of MSME. New Guidelines of Micro& Small Enterprises Cluster Development Programm (MSE-CDP scheme) - Homepgae New Guidelines of Micro& Small Enterprises Cluster Development Programm (MSE-CDP scheme) - Homepage From the homepage click on the New User Click Here to sign up option for user registration. New Guidelines of Micro& Small Enterprises Cluster Development Programm (MSE-CDP scheme) - Signup New Guidelines of Micro& Small Enterprises Cluster Development Programm (MSE-CDP scheme) - Signup MSE-CDP scheme - Sign in 2 New Guidelines of Micro& Small Enterprises Cluster Development Programm (MSE-CDP scheme) - Signin 2 On successful registration, Log On by clicking on the Registered User Click Here to Sign in . MSE-CDP scheme - Signin New Guidelines of Micro& Small Enterprises Cluster Development Programm (MSE-CDP scheme) - Signin
  • Enter the User Id and Password. After login, select the Apply - New Guidelines of MSE-CDP for applying to this program.
  • Fill up all the requested fields of the application form, finalize the application, and once finalized no change can be done.
  • Take the printout of the application sign and send the application along with desired documents
  • The state government will forward the same to the concerned MSME-DI for their recommendation/verification and further, submission to the office of DC-MSME, within 30 days failing which the applications, will be deleted from the system automatically.
  •  The applicant is also provided with an option to enter his comments online regarding the routine of his completed application so that monitoring can be done on the flow of the applications.
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Frequently Asked Questions

Common questions about Micro & Small Enterprises Cluster Development Program MSE.

The main objectives of the MSE-CDP scheme are to enhance the sustainability, competitiveness, and growth of MSEs by addressing common issues like improving technology, skills, quality, and market access. It also aims to build the capacity of MSEs and startups through integration with self-help groups, consortia, and district industry associations, as well as create or upgrade infrastructural facilities in new or existing industrial areas and clusters.
The two main components of the MSE-CDP scheme are: 1) Setting up of Common Facility Centers (CFCs) for testing, training, raw material depots, effluent treatment, etc. 2) Infrastructure Development (ID) for developing infrastructure in new or existing notified industrial estates.
For CFCs with a project cost of Rs. 5 crore to Rs. 10 crore, the funding pattern is 70% from the Government of India, 20% from the State Government, and 10% from the Special Purpose Vehicle (SPV). For projects costing Rs. 10 crore to Rs. 30 crore, the funding pattern is 60% from the Government of India, 20% from the State Government, and 20% from the SPV.
For new ID projects with a cost of Rs. 5 crore to Rs. 15 crore, the funding pattern is 60% from the Government of India and 40% from the State Government. For upgrading existing infrastructure with a project cost of Rs. 5 crore to Rs. 10 crore, the funding pattern is 50% from the Government of India and 50% from the State Government.
The implementing agencies for setting up Common Facility Centers (CFCs) include institutions of the Ministry of MSME (MSME-DIs, NSIC, KVIC, Coir Board, Technology Centers, NI-MSME, and MGIRI), organizations of State Governments, national and international institutions engaged in the development of the MSE sector, and any other institution or agency approved by the Ministry of MSME. For Infrastructure Development projects, the implementing agencies are State or UT Governments through an appropriate State Government or UT Agency, Integrated Industrial Park Development Agency, or State Industrial Development Agency.
The projects under the MSE-CDP scheme have to be completed within 18 months from the date of approval order by the National Programme Advisory Committee (NPAC).
The documents required for placing a CFC proposal include a Detailed Project Report (DPR), registered land documents, SPV registration as a Section 8 Company, geo-tagging, SLSC recommendation along with minutes of the meeting, statutory compliances, and a certificate from the State Government for compliance with GFR/CVC guidelines.
The documents required for placing an ID proposal include a Project Appraisal Report, land documents, geo-tagging, SLSC recommendation along with minutes of the meeting, statutory compliances, and a certificate from the State Government for compliance with GFR/CVC guidelines.
Applicants can access the official website of the Cluster Development Program of MSME, register as a new user, log in as a registered user, and apply under the "New Guidelines of MSE-CDP" section. They need to fill out the application form, finalize it, take a printout, sign it, and submit it along with the required documents to the concerned authorities.
After receiving the application, the State Government will forward it to the concerned MSME-Development Institute (MSME-DI) for recommendation or verification within 30 days. The MSME-DI will then submit the application to the Office of the Development Commissioner (DC-MSME) for further processing.