New Delhi, Apr 10 (KNN) The Ministry of Micro, Small and Medium Enterprises (MSME) has approved revisions to the Micro and Small Enterprises Clusters Development Program (MSE-CDP).

According to an Office Memorandum of the DC MSME, the revised scheme would promote green and sustainable manufacturing technology for the clusters so as to enable units switch to sustainable and green production processes and products.

Besides this, the other objectives of the scheme would remain same as before which includes to support the sustainability and growth of MSEs; to build capacity of MSEs for common supportive action through formation of self-help groups, consortia, upgradation of associations, etc.; to create/upgrade infrastructural facilities in the ne/existing industrial areas/ clusters of MSEs and to set up common facility centres.

Apart from two components i.e. setting up of CFCs and Infrastructure Development, the revised scheme includes Marketing Hubs/Exhibition Centers by Associations, Thematic Interventions, and Support to State Innovative Cluster Development Program.

The newly added Marketing Hubs/Exhibition Centers by Associations component would cover the Government of India's (GoI's) assistance to associations for establishing marketing hubs/exhibition centres at central places for display and sale of products of Micro and Small Enterprises.

The GoI grant will be restricted to 60% of the cost of project of maximum Rs 10 crore for product specific associations with BMO rating of Gold Category and above from National Accreditation Board for Education and Training (NABET) which is a constituent Board of Quality Council of India and 80% for Associations of women entrepreneurs.

In order to make industry associations more efficient, NABET provides Accreditation to Business Membership Organizations (BMOs) under which it grades them and help them in leveraging funds from agencies and get grants from the government.

Remaining project cost is borne by SPV/State Government. The GoI contribution will be towards construction of buildings, furnishings, furniture, fittings, items of permanent display, miscellaneous assets like generators etc.

While thematic Interventions component would cover GoI financial assistance for implementation of thematic interventions in approved/completed CFCs for activities like training programs, exposure visits, activities related to creating business ecosystem in cluster mode and strengthening the Business Development Services (BDS) provision through a panel of service providers.

Under this GoI grant will be restricted to 50% of total cost of maximum 5 activities not exceeding Rs 2 lakh for each activity. The maximum grant under this component for each CFC would be Rs 10 lakh and remaining cost would be borne by SPV/State Government.

The support to State Innovative Cluster Development Program component would provide co-funding of the CFC projects of State Cluster Development Program on matching share basis.

The Ministry of MSME adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.

A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same/similar products/services.