§1Who it is for

  • Clusters of existing MSEs via an SPV; State Governments sending proposals

Useful if

Industry associations of a cluster wanting a CFC or estate upgrade.

Do not spend time on it if

Individual units.

§2Eligibility

  1. Existing entrepreneurs organised as Special Purpose Vehicles (SPVs).
  2. Demand-driven: State Government sends the proposal.
  3. CFC for existing clusters; infrastructure for new/existing industrial areas, estates, flatted factory complexes.

§3Benefits

  • Common Facility Centres (testing, design, common production, raw material depot, ETP, plug & play).
  • Infrastructure development (land development, roads, drainage, power) in industrial estates / flatted factories.

§4Norms — pattern of assistance

  1. CFC: GoI grant 70% of project cost (₹5–10 crore) and 60% (₹10–30 crore); 80% and 70% for NER, hill states, islands, aspirational & LWE districts, and clusters with >50% micro/village/women/SC/ST units. Max eligible project cost ₹30 crore.
  2. Infrastructure: 60% for new estates (₹5–15 crore), 50% for upgrading (₹5–10 crore); 70% / 60% for special areas and categories. Max eligible cost ₹15 crore / ₹10 crore.
  3. Note: the Feb 2025 MSME booklet printed older norms (80% of max ₹30 crore for CFC; 70% of max ₹15 crore for infra) — Annual Report 2025-26 norms used here.

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Through State Government / DIC on https://cluster.dcmsme.gov.in.

§7Pros and cons

Merits

  • Large grant share for shared testing and production facilities.
  • 606 projects approved since inception, 364 completed (MSME AR 2025-26).

Demerits

  • Needs SPV and state sponsorship; slow cycle.
  • Norms differ between MSME booklet and Annual Report — confirm current guideline before planning.

→Related schemes

Need help with MSE-CDP?

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Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Ministry of MSME: Annual Report 2025-26
  2. Ministry of MSME: Schemes for MSMEs booklet v2.0 (14 Feb 2025)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.