Cluster Development Program

Micro, Small and Medium Enterprises (MSMEs) play a significant role in the economic development of the country. The sector contributes about 45% of the total production, 40% of the exports and about 69% of the employment opportunities. Considering the importance of MSME sector, the Central and the State Government have announced Industrial Cluster Development Programs based on the concept of collective development.

Industrial Cluster Development Program: Minimum 20 nos. of working Micro/ Small units engaged in manufacturing of same/ similar products/ services under same category.

The Govt. of India is implementing the “Micro, Small Enterprises-Cluster Development Program (MSE-CDP)” since the year 2006, for the holistic development of the Micro and Small sector. The Government of Maharashtra has approved the State’s own scheme namely “Maharashtra State Industrial Cluster Development Program (MSICDP)” vide G.R. dated 25 February 2014, focusing on industrially backward areas for balanced growth of the State.

Under the Cluster Development Programs, the capacity building program namely ‘Soft Intervention’ & physical common facility centre (CFC) namely ‘Hard Intervention’ are being implemented with the help of financial support from Government of India & Government of Maharashtra.

The Common Facilities Center (CFC) includes, the facilities like Research and Development Center (R&D), Packaging Center, Testing Facility, Training Center, Common Effluent Treatment Plant (CETP), Common Processing Center etc.

A. Government of India’s Micro, Small Enterprises Cluster Development Program (MSE-CDP)

The Micro, Small Enterprises Cluster Development Program (MSE-CDP) is announced under the revised version by Govt. of India (GoI) on date 24 May 2022. Under revised guidelines, the Government of India gives financial support as Grant-In-Aid of 60%-80% of approved project cost (Considering the project cost of maximum of Rs. 30.00 Crore) to establish Common Facility Centre (CFC).

The scheme is being implemented in the State by the Directorate of Industries, a total of 54 projects are approved by Government of India for conducting interventions out of which a total of 47 projects got approval for setting up of CFC. As on date, 24 projects are operational, and rest are under construction stage.

B. Government of Maharashtra’s Maharashtra State Industrial Cluster Development Program (MSICDP)

The Government of Maharashtra vide G.R. dated 25 February 2014 announced the State’s own cluster development program namely “Maharashtra State Industrial Cluster Development Program (MSICDP)”, focusing on Industrially backward areas viz. C, D, D+, No Industry Districts & Naxalite Affected Areas.

Under the scheme, the State Government supports the clusters by giving financial support (Grant- In-Aid) for conducting Soft Intervention (90% of the approved cost with project cost limit of Rs.10.00 Lakh) and Hard Intervention (70%-80% of approved project cost with grant limit of Rs. 10.00 crore). The scheme has a provision of additional grant of 10% (i.e. total 90%) for projects of Women entrepreneurs and SC-ST entrepreneurs. The scheme has got wide response, total 256 nos. of projects are identified and approved for further interventions. Out of approved projects, total 125 nos. of projects are accorded with final approval. As on date, 71 nos. of projects are operational.

Due to the effective implementation of cluster program, the concept of collective development is being accepted widely; the confidence and trust building amongst the Micro & Small entrepreneurs has increased. The cluster intervention results in making SME sector more confident and competitive due to easy access of high-end technology. Around 25,000 SMEs in the State have benefitted which paves the way in creating substantial employment and self-employment opportunities in the State.