• To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills & quality, market access, etc.
• 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 new/existing Industrial Areas/ Clusters of MSEs.
• To set up Common Facility Centres (for testing, training, raw material depot, effluent treatment, complementing production processes, etc.).
• Promotion of green & sustainable manufacturing technology for the clusters.

• CFCs: The central government grant will be restricted to 70% of the cost of project from Rs. 5.00 crore to Rs. 10.00 crore and 60% of the cost of project from Rs. 10.00 crore to Rs. 30.00 crore. In case of NE & Hill States, Island territories, Aspirational Districts, government grant will be 80% of the cost of project from Rs. 5.00 crore to Rs. 10.00 crore and 70% of the cost of project from Rs. 10.00 crore to Rs. 30.00 crore. The project for CFC with project cost more than Rs. 30.00 crore shall also be considered but the Government assistance would be calculated by taking into account the maximum eligible project cost of Rs.30.00 crore.
• Infrastructure Development: The central government grant will be restricted to 60% of the cost of project from Rs. 5.00 crore to Rs. 15.00 crore for setting up of new Industrial Estate / Flatted Factory Complex and  grant will be 50% of the cost of project from Rs. 5.00 crore to Rs. 10.00 crore for up-gradation of existing Industrial Estate / Flatted Factory Complex. In case of NE & Hill States, Island territories, Aspirational Districts,  grant will be 70% of the cost of project from Rs. 5.00 crore to Rs. 15.00 crore for setting up of new Industrial Estate / Flatted Factory Complex and 60% of the cost of project cost from Rs. 5.00 crore to Rs. 10.00 crore for up-gradation of existing Industrial Estate / Flatted Factory Complex. The project for ID with project cost more than Rs. 10.00 crore/15.00 crore can also be considered but the government assistance would be calculated by taking into account the maximum eligible project cost of Rs. 10.00 crore/15.00 crore.
• Marketing Hubs/Exhibition Centres by Associations: The GoI grant will be restricted to 60% of the cost of project of maximum Rs. 10.00 crore for Product Specific Associations with BMO rating of Gold Category and above from NABET(QCI) and 80% for Associations of Women Entrepreneurs. Remaining project cost is to be borne by SPV/State Government.
• Thematic Interventions: Grant will be restricted to 50% of total cost of maximum 5 activities not exceeding Rs. 2.00 lakh for each activity. GoI grant under this component for each CFC would be Rs. 10.00 lakh.
• Support to State Innovation Cluster Development Programme: The GoI fund would be limited to State Government share or Rs. 5.00 Crore whichever is lower and the assistance would be 90% of project cost in respect of CFC projects in North-East/Hilly States, 10 Island territories, Aspirational Districts/ LWE affected Districts, as well as for projects where beneficiaries are SC/ ST/ Women owned enterprises.

Online applications can be filled at CLUSTER DEVELOPMENT PROGRAMME Hard copy of applications need to be sent through State Governments or their Autonomous Bodies or field institutes of the Ministry of MSME i.e., MSMEDIs. The proposals are approved by the National Level Steering Committee of MSE-CDP.

State Govt./State Agencies, Clusters, Industrial Associations/ Consortia.