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Govt Approves Guidelines For MSE-CDP To Boost Competitiveness And Productivity

The Ministry of Micro, Small and Medium Enterprises said that the scheme aims at enhancing the competitiveness and productivity of micro and small enterprises

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The government has approved the new guidelines for the micro and small enterprises cluster development programme (MSE-CDP), which will be implemented during the 15th finance commission cycle (2021-22 to 2025-26). 

The Ministry of Micro, Small and Medium Enterprises said that the scheme aims at enhancing the competitiveness and productivity of micro and small enterprises. 

The central government grant will be restricted to 70 per cent of the cost of the project from Rs 5.00 crore to Rs 10.00 crore and 60 per cent of the cost of the project from Rs 10.00 crore to Rs 30.00 crore, the ministry said. 

In the case of northeast and hill states, Island territories and aspirational districts, government grants will be 80 per cent of the cost of the project from Rs 5.00 crore to Rs 10.00 crore and 70 per cent of the cost of the project from Rs 10.00 crore to Rs 30.00 crore. 

"The project for Common Facility Centers (CFCs) with a project cost of more than Rs 30.00 crore will also be considered but the government assistance would be calculated by taking into account the maximum eligible project cost of Rs.30.00 crore," the statement read. 

For the infrastructure development, the central government grant will be restricted to 60 per cent of the cost of the project from Rs 5.00 crore to Rs 15.00 crore for the setting up of a new Industrial estate, and flatted factory complex and the grant will be 50 per cent of the cost of the project from Rs 5.00 crore to Rs 10.00 crore for up-gradation of the existing industrial estate, flatted factory complex, it said.