MSME Implements Cluster Development Programme Nationwide

25 Mar 2026 CW Team

A total of 242 CFCs have been approved under the MSE-CDP, including six in the State of Punjab, while 513 clusters have been approved under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), including two in Punjab. Details of state-wise approvals are recorded in the annexure accompanying the release. Two of the Punjab CFCs are in the textile and automobile sectors located in Ludhiana and Patiala.

The Common Facility Centres are designed to enhance sustainability, competitiveness and overall growth of micro and small enterprises by addressing shared challenges in technology upgradation, skill development, quality improvement and market access. For implementation of CFC projects, the ministry provided Rs. 4,389.4 mn during the last five years. The MSE-CDP is demand led and prioritises interventions that can deliver collective benefits for cluster members.

The Credit Guarantee Scheme (CGS) for micro and small enterprises, implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), provides guarantee coverage for loans with a ceiling of Rs. 100 mn from one April 2026. A special provision guarantees unsecured composite credit up to Rs. 2 mn for informal micro enterprises with coverage of 85 per cent. The ministry has notified that certificates issued on the Udyam Assist platform for informal micro enterprises shall be treated at par with Udyam registration certificates for Priority Sector Lending and the information was provided by the Minister of State in a written reply to Rajya Sabha.

The Ministry of Micro, Small and Medium Enterprises is implementing the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) nationwide. The scheme aims to enhance the productivity and competitiveness of micro and small enterprises through a cluster development approach by extending government grants to establish Common Facility Centres (CFCs) and to develop or upgrade infrastructure in industrial estates and flatted factory complexes. The scheme operates on a demand driven basis and receives proposals from state governments and Union Territories according to local needs. A total of 242 CFCs have been approved under the MSE-CDP, including six in the State of Punjab, while 513 clusters have been approved under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), including two in Punjab. Details of state-wise approvals are recorded in the annexure accompanying the release. Two of the Punjab CFCs are in the textile and automobile sectors located in Ludhiana and Patiala. The Common Facility Centres are designed to enhance sustainability, competitiveness and overall growth of micro and small enterprises by addressing shared challenges in technology upgradation, skill development, quality improvement and market access. For implementation of CFC projects, the ministry provided Rs. 4,389.4 mn during the last five years. The MSE-CDP is demand led and prioritises interventions that can deliver collective benefits for cluster members. The Credit Guarantee Scheme (CGS) for micro and small enterprises, implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), provides guarantee coverage for loans with a ceiling of Rs. 100 mn from one April 2026. A special provision guarantees unsecured composite credit up to Rs. 2 mn for informal micro enterprises with coverage of 85 per cent. The ministry has notified that certificates issued on the Udyam Assist platform for informal micro enterprises shall be treated at par with Udyam registration certificates for Priority Sector Lending and the information was provided by the Minister of State in a written reply to Rajya Sabha.

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