Cluster Development Programme (MSE-CDP)

Ministry of Micro, Small and Medium Enterprises (MSME)

MSE-CDP supports groups of micro and small enterprises by improving common infrastructure, technology, skills, quality and market access through cluster-based development.

Eligibility Criteria

  • Applicable to MSME clusters (manufacturing or service)
  • Eligible applicants: Industry associations, State governments, Special Purpose Vehicles (SPVs)
  • Units with common business activities
  • Focus on collective development and shared infrastructure
  • Application must be cluster-based
  • Individual MSMEs are not eligible to apply directly

 Benefits

  •  Diagnostic Study: Identifies cluster gaps and opportunities, Maximum cost: ₹2.5 lakh
  • Soft Interventions:
  • Training, skill development, capacity building
  • Maximum project cost: ₹25 lakh
  • Government support: 75% (general category), 90% (special category/women / SC/ST / micro clusters)
  • Common Facility Centres (CFCs) – Hard Interventions:
  • Facilities such as: Testing labs, Training centres, Raw material depots
  • Maximum project cost: ₹15 crore
  • Government support: 70% (general category), 90% (special category clusters)
  • Infrastructure Development:
  • Industrial area development/upgradation
  • Maximum project cost: ₹10 crore
  • Government support: 60% (general category), 80% (special category clusters)

 How to Apply

  • Application mode: Online (mandatory)
  • Submit online application under MSE-CDP
  • Send a hard copy of the application through: State Government/Autonomous Body or MSME Development Institutes (MSMEDIs)
  • The proposal is evaluated by the Steering Committee of MSE-CDP
  • Approval granted based on project viability and impact

Documents Required

  • Cluster details and profile
  • Detailed Project Report (DPR)
  • Industrial association/consortium registration details
  • Financial estimates and project cost
  • Land and infrastructure details (for CFC/infrastructure projects)
  • State Government recommendation/forwarding letter

Important Disclaimer

We’ve simplified this scheme to help you understand it quickly. For the latest updates or detailed guidelines, you can always check the official government website.

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