Development of AYUSH Clusters Scheme

The AYUSH industry is full of potential, but it comes with its own set of challenges: limited resources, fierce competition, and the ever-present pressure to maintain quality. For many AYUSH MSMEs, these obstacles can feel overwhelming. But what if you didn’t have to face them alone? The Development of AYUSH Clusters Scheme is here to change that.

This scheme empowers businesses like yours to join forces, pool resources, and gain access to invaluable government support. By encouraging collaboration, particularly in ASU and Homoeopathic drugs, it helps address key challenges such as standardization, quality control, and marketing. The Department of AYUSH offers grants to Special Purpose Vehicles (SPVs), formed by at least 15 enterprises, to strengthen infrastructure and capacity within the sector.

This gives you the opportunity to thrive and focus on scaling your business rather than just surviving. With this scheme, you can turn your challenges into opportunities for growth, all while benefiting from a collective approach to success.

What is the AYUSH Clusters Scheme?

This is a Central Sector Scheme launched during the 11th Five Year Plan (2007–2012) and was designed to run alongside the plan period. The Department of AYUSH allocated ₹100 crores during this time to fund pilot cluster projects across the country. The scheme is implemented in a Public Private Partnership (PPP) format, where you, along with other AYUSH entrepreneurs, form a Special Purpose Vehicle in AYUSH clusters to access government support.

Under this scheme, the Department of AYUSH provides a grant covering up to 60% of your project cost, subject to a maximum of ₹10 crores per cluster. The remaining 40% must be arranged by your Special Purpose Vehicle (SPV) through equity, bank loans, or other financial sources. This approach ensures you’re not alone, by collaborating with fellow MSME owners, you can share resources, modernize your facilities, and make your business more competitive, all with strong government backing.

Objectives of the Development of AYUSH Clusters Scheme

• Help you fill critical gaps in standardization, quality assurance, and quality control for your AYUSH MSME.
• Boost your productivity, marketing reach, and infrastructure by encouraging collective action with other businesses.
• Motivate you to join or form organized clusters, so you can build strong social capital and ensure long-term sustainability.
• Support you in capacity building, innovation, and adopting the latest technology upgrades for your AYUSH business.

Key Features of the Development of AYUSH Clusters Scheme

• Get up to 60% government grant for your cluster project, with a maximum of ₹10 crore per cluster; the remaining 40% is to be arranged by the Special Purpose Vehicle (SPV).
• Benefit from support in setting up common manufacturing, testing, and packaging facilities for your AYUSH products.
• Receive assistance for quality certification, marketing, branding, and human resource development to help your business grow.
• Cluster management is made easier with support for hiring a Cluster Development Executive (CDE) to coordinate activities.
• Projects are implemented through an SPV formed by at least 15 AYUSH MSMEs, ensuring collective strength and shared resources.
• The entire project is designed to be completed within 3 years from the date of approval, so you see results quickly.

Financial Assistance Offered Under the AYUSH MSME Support Scheme

As an MSME owner joining an AYUSH cluster, here’s how the AYUSH cluster funding opportunities work for you:

Grant Funding Structure

Assistance Limits

Project Cost

• The total project cost includes all proposed interventions (core and add-on) as detailed in your DPR.
• The scheme is modular, so you can add interventions during implementation (subject to approval and alignment with scheme objectives).

Dovetailing Funds

You may combine (dovetail) funds from other sources, but:

• No duplication of funding for the same component/intervention is allowed.
• The SPV’s own contribution must be at least 10% of the overall project cost.

Release of Funds Schedule

Note:

• You must submit a UC for the amounts used, as per GFR 19A format.
• Accounts of the SPV will be audited by the Comptroller & Auditor General of India.
• The fee paid to the PMC by AYUSH is separate from the grant-in-aid given to the SPVs.

Eligibility Criteria for Development of AYUSH Clusters Scheme

Eligibility

• You must be part of an MSME operating in Ayurveda, Siddha, Unani, Homeopathy, Yoga, or Naturopathy.
• Form a Special Purpose Vehicle (SPV) with at least 15 MSMEs in your cluster.
• The SPV must be a registered legal entity (company, society, trust, etc.).
• Have a clear business plan and a Detailed Project Report (DPR).

Non-eligibility

• Individual MSMEs that are not part of an SPV.
• Clusters outside the AYUSH sector.
• Entities with outstanding government dues or those blacklisted by authorities.

Documents Required for the Development of AYUSH Clusters Scheme

• PAN and GST registration.
• SPV registration certificate.
• Detailed Project Report (DPR).
• MSME registration documents for all members.
• AYUSH license/certification.
• Financial statements of member units.
• Any other documents specified by scheme guidelines.

How to Apply for the Development of AYUSH Clusters Scheme?

Step 1: Connect with other AYUSH MSMEs in your area and agree to form an SPV.

Step 2: Register your SPV as a legal entity (company, society, or trust).

Step 3: Prepare a comprehensive Detailed Project Report (DPR) covering your cluster’s needs, business plan, and funding requirements.

Step 4: Gather all required documents, including MSME and AYUSH certifications.

Step 5: Submit your application and DPR to the Ministry of AYUSH through the official portal or designated authority.

Step 6: Once your project is evaluated and approved, you’ll receive the first installment of the grant to kick-start your cluster’s development.

Benefits of the Development of AYUSH Clusters Scheme

• Access to Modern Infrastructure
  You get shared manufacturing, testing, and packaging facilities, reducing your individual investment and operational costs.
• Quality Certification Support
  Receive financial help for obtaining national and international quality certifications, making your products more marketable.
• Collective Marketing Power
  Benefit from joint branding, promotional campaigns, and participation in trade fairs, helping you reach larger markets together.
• Technology Upgradation
  Upgrade your production processes and adopt new technologies with government support, boosting your competitiveness.
• Capacity Building and Training
  Access training programs for you and your team, improving skills and business know-how.
• Reduced Financial Burden
  With up to 60% of project costs covered by the government, your risk is minimized and growth potential maximized.

Real-World Examples of Development of AYUSH Clusters Scheme

• Ayurvedic Herb Farming in Rural Areas
• Self-Help Groups (SHGs) for Ayurvedic Product Manufacturing
• Yoga and Wellness Centers
• Traditional Herbal Medicine Clusters

Related Government Support Plans with Development of AYUSH Clusters Scheme

Final Words

If you’re ready to take your AYUSH MSME to the next level, this scheme is your gateway to modern infrastructure, better quality, and bigger markets. By joining hands with other entrepreneurs, you can transform challenges into opportunities gaining access to funding, technology, and expert support that would be hard to achieve alone. Don’t let limited resources hold you back; leverage the power of clusters and government grants to build a thriving, future-ready business.