**Executive Summary**
The Ministry of MSME is implementing the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) to enhance productivity through financial grants for Common Facility Centers (CFCs) and infrastructure. A total of 242 CFCs and 513 SFURTI clusters have been approved nationwide, supported by an allocation of ₹438.94 crore over the last five years. Key updates include an increase in the credit guarantee ceiling to ₹10 crore effective April 1, 2026, and the recognition of Informal Micro Enterprises for Priority Sector Lending.
**Key Points / Main Content**
**MSE-CDP Objectives and Implementation**
* Financial assistance is provided as Government of India grants to establish CFCs and upgrade infrastructure in industrial estates or flatted factory complexes.
* The programme is demand-driven, with proposals submitted by State Governments and Union Territories based on local needs.
* CFCs aim to address challenges in technology upgradation, skill development, quality improvement, and market access.
**Current Approvals and Regional Focus**
* 242 CFCs have been approved across the country to date.
* 513 clusters have been approved under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) since 2015–16.
* In Punjab, six CFCs have been approved, including a Garments Cluster in Ludhiana (Textile sector) and a Cutting Tool Cluster in Patiala (Automobile sector).
**Credit Guarantee and Financial Support**
* The Credit Guarantee Scheme (CGS) ceiling for MSEs will increase to ₹10 crore effective April 1, 2026.
* Informal Micro Enterprises (IMEs) exempted from GST are eligible for a special credit facility up to ₹20 lakh with 85% guarantee coverage.
* ₹438.94 crore has been utilized for CFC project implementation over the previous five years.
**Regulatory Changes for Informal Enterprises**
* As per the March 20, 2023, notification, certificates from the Udyam Assist Platform for IMEs are now treated at par with Udyam Registration Certificates.
* This alignment allows IMEs to avail of Priority Sector Lending (PSL) benefits.
**Impact Analysis**
**Micro and Small Enterprises (MSEs)**
**Impact**
MSEs gain improved sustainability and competitiveness through access to shared technological and infrastructural facilities. They also benefit from significantly higher credit guarantee limits for business expansion.
**Action Required**
Eligible enterprises should utilize established CFCs for technology and skill upgrades and apply for loans under the revised CGTMSE coverage limits.
**State Governments and Union Territories**
**Impact**
State authorities act as the primary drivers of the scheme, identifying regional industrial gaps that require federal financial assistance.
**Action Required**
States must identify potential industrial clusters and submit formal proposals to the Ministry for the establishment or upgrading of facilities.
**Informal Micro Enterprises (IMEs)**
**Impact**
IMEs are now formally recognized for financial benefits, allowing them to access unsecured affordable credit and Priority Sector Lending despite being outside the GST regime.
**Action Required**
IMEs should register on the Udyam Assist Platform to obtain the necessary certification for credit and lending benefits.
Key Entities Referenced
Micro and Small Enterprises Cluster Development Programme (MSE-CDP): The primary scheme implemented by the Ministry of MSME to enhance productivity and competitiveness of MSEs by providing financial assistance for Common Facility Centers and infrastructure.
Scheme of Fund for Regeneration of Traditional Industries (SFURTI): A secondary scheme focused on the holistic development and regeneration of traditional industry clusters across various states.
Credit Guarantee Scheme (CGS): A financial initiative providing credit guarantee coverage for loans extended to Micro and Small Enterprises, including special provisions for Informal Micro Enterprises.
Ministry of Micro, Small & Medium Enterprises: The central governing body responsible for implementing cluster development programmes and credit schemes for the MSME sector in India.
Udyam Assist Platform: A digital platform for Informal Micro Enterprises whose certificates are recognized for availing Priority Sector Lending benefits.
Ministry of Micro,Small & Medium Enterprises
Ministry of MSME is implementing Micro and
Small Enterprises Cluster Development
Programme (MSE-CDP) across the country
Scheme aims to enhance the productivity and
competitiveness of Micro and Small Enterprises (MSEs) for
their holistic development adopting cluster development
approach by extending financial assistance
Posted On: 23 MAR 2026 4:57PM by PIB Delhi
Ministry of MSME is implementing Micro and Small Enterprises Cluster Development Programme
(MSE-CDP) across the country. The objective of the scheme is to enhance the productivity and
competitiveness of Micro and Small Enterprises (MSEs) for their holistic development adopting cluster
development approach by extending financial assistance as GoI grant to establish Common Facility
Centers (CFCs) in the existing clusters and establish/up-grade infrastructural facilities in new/existing
industrial estates/areas/flatted factory complexes. It is demand driven scheme and proposals are
received from State Government/UTS as per their need.
A total of 242 Common Facility Centres (CFCs), including six (06) in the State of Punjab, have been
approved across the country under the Micro & Small Enterprises–Cluster Development Programme
(MSE-CDP) and 513 clusters, including two (02) in the State of Punjab, have been approved across the
country since 2015–16 under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI).
State-wise details of CFCs approved under the MSE-CDP and clusters approved under the SFURTI
Scheme, including those in Punjab, are annexed at Annexure.
Further, out of the six (6) CFCs, the following two (02) have been approved in the automobile and
textile sectors in the State of Punjab, as per the details given below.
S. Name of the CFC District Sector
No.
1 Garments Cluster, Ludhiana Ludhiana Textile
2 Cutting Tool Cluster, Patiala Patiala AutomobilesThe Common Facility Centres contribute to enhancing the sustainability, competitiveness and overall
growth of MSEs by addressing common challenges relating to technology upgradation, skill
development, quality improvement and market access. Under the MSE-CDP Scheme, an amount of Rs.
438.94 crore has been provided during the last five years for the implementation of CFC projects.
The Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs), implemented through
the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), provides credit guarantee
coverage for loans extended to MSEs. The ceiling for guarantee coverage under the Scheme is Rs. 10
crore (w.e.f. 01.04.2026). Further, to facilitate unsecured affordable credit flow to Informal Micro
Enterprise (IMEs), which are exempted from GST regime, for their composite requirement, special
provision under credit guarantee scheme has been made i.e. Credit facility up to ₹20 lakh is guaranteed
with extent of coverage of 85%.
In order to facilitate the promotion and development of micro, small and medium enterprises, vide
notification no. S.O.1296 (E), dated 20.03.2023, Ministry of Micro, Small and Medium Enterprises has
notify that the certificate issued on the Udyam Assist Platform to Informal Micro Enterprises shall be
treated at par with Udyam Registration Certificate for the purpose of availing Priority Sector Lending
benefit.
Annexure
State-wise details of Common Facility Centres approved under the MSME Scheme and clusters approved
under the SFURTI Scheme are as follows
State Common Facility Centers (CFCs) Clusters Approved under
approved under MSE-CDP SFRUTI Scheme
Scheme
Andaman & Nicobar 0 1
Andhra Pradesh 11 16
Arunachal Pradesh 0 3
Assam 2 35
Bihar 1 10
Chattisgarh 0 5
Delhi 0 0
Goa 2 0
Gujarat 14 14
Haryana 10 5Himachal Pradesh 1 4
J&K 1 8
Jharkhand 0 15
Karnataka 29 29
Kerala 17 10
Madhya Pradesh 2 45
Maharashtra 50 29
Manipur 2 26
Meghalaya 1 6
Mizoram 1 1
Nagaland 5 9
Odisha 7 70
Puducherry 0 0
Punjab 6 2
Rajasthan 7 34
Sikkim 1 4
Tamilnadu 49 28
Telangana 2 16
Tripura 0 3
Uttar Pradesh 8 59
Uttarakhand 2 5
West Bengal 11 21Total 242 513
This information was given by the Minister of State for Micro, Small and Medium Enterprises,
Sushri Shobha Karandlaje in a written reply in Rajya Sabha today.
***
Sunil Kumar Tiwari
E-mail hipessi[at]gmail[dot]com
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