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With an aim to enhance the competitiveness and productivity of Micro & Small Enterprises, The Government has approved New Guidelines of Micro & Small Enterprises Cluster Development Programme (MSE-CDP), which will be implemented during 15th Finance Commission Cycle (2021-22 to 2025-26).

According to the notification, for common facility centers (CFCs): The central government grant will be restricted to 70% of the cost of project from Rs 5 crore to Rs 10 crore and 60% of the cost of project from Rs 10 crore to Rs 30 crore. In case of NE & Hill States, Island territories, Aspirational Districts, government grant will be 80% of the cost of project from Rs 5 crore to Rs 10 crore and 70% of the cost of project from Rs 10 crore to Rs 30 crore. The project for CFC with project cost more than Rs 30 crore shall also be considered but the Government assistance would be calculated by taking into account the maximum eligible project cost of Rs 30 crore.

Further, for infrastructure development: The central government grant will be restricted to 60% of the cost of project from Rs 5 crore to Rs 15 crore for setting up of new Industrial Estate / Flatted Factory Complex and grant will be 50% of the cost of project from Rs 5 crore to Rs 10 crore for up-gradation of existing Industrial Estate / Flatted Factory Complex. In case of NE & Hill States, Island territories, Aspirational Districts, grant will be 70% of the cost of project from Rs 5 crore to Rs 15 crore for setting up of new Industrial Estate / Flatted Factory Complex and 60% of the cost of project cost from Rs 5 crore to Rs 10 crore for up-gradation of existing Industrial Estate / Flatted Factory Complex. The project for ID with project cost more than Rs 10 crore/15 crore can also be considered but the government assistance would be calculated by taking into account the maximum eligible project cost of Rs 10 crore/15 crore.