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22 Aug 2023

Infrastructure Development: Sub scheme – MSE CDP)

Objective

(i)The key objective of the scheme is to:- To enhance the sustainability, competitiveness and growth of MSEs by addressing common issues such as improvement of technology, skills &quality, market access, etc.

(ii) To build capacity of MSEs and Startups for common supportive action through integration of self-help groups, consortia, district Industry associations, etc.

(iii) To create upgrade infrastructural facilities in the new/existing Industrial Areas Clusters of MSEs. (iv) To set up Common Facility Centres in Industrial area (for testing, training centre, raw material depot, effluent treatment, complementing production processes).

(v) Promotion of green & sustainable manufacturing technology for the clusters so as to enable units switch to sustainable and green production processes and products.

Eligibility

1. The GoI grant will be restricted to 60% / 70% / 80% of the cost of Project of maximum Rs.30.00 crore as per the Scheme guidelines.

2. Cost of project includes cost of Land (subject to max. of 25% of Project Cost), building, pre-operative expenses, preliminary expenses, machinery & equipment, miscellaneous fixed assets, support infrastructure such as water supply, electricity and margin money for working capital.

3. The entire cost of land and building for CFC shall be met by SPV/State Government concerned.

4. In case existing land and building is provided by stakeholders, the cost of land and building will be decided on the basis of valuation report prepared by an approved agency of Central/State Govt. Departments/FIs/Public Sector Banks. Cost of land and building may be taken towards contribution for the project.

5. CFC can be set up in leased premises. However, the lease should be legally tenable and for a fairly long duration (say 15 years).

6. Escalation in the cost of project above the sanctioned amount, due to any reason, will be borne by the SPV/ State Government. The Central Government shall not accept any financial liability arising out of operation of any CFC.

7. DPR should be appraised by a bank (if bank financing is involved) / independent Technical Consultancy Organization/ SIDBI. 8. Proposals approved and forwarded by the concerned state government. 9. Evidence should be furnished with regard to SPV members ability to utilize at least 60% of installed capacity