Maharashtra State Industrial - Cluster Development Programme

The Maharashtra State Industrial Cluster Development Programme (MSICDP) is an initiative of the Government of Maharashtra, implemented through the Directorate of Industries under the Department of Industries, Energy & Labour. to strengthen MSME clusters across the state, especially in D, D+ and No-Industry areas.

The programme promotes collective growth by encouraging enterprises in similar sectors and geographic areas to form clusters, develop common facilities, and undertake joint capacity building. As an MSME, joining a cluster under MSICDP allows your business to access shared infrastructure, reduce costs, and improve competitiveness.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Formation of Special Purpose Vehicle (SPV): A cluster must form an SPV, a registered society, trust, company, or co-operative representing all cluster members. The SPV becomes the legal entity that owns and manages the common facility. This ensures accountability, transparency, and collective participation from all beneficiary units.
Soft and Hard Interventions: MSICDP supports both types of interventions. Soft Interventions include training, capacity building, technology upgradation, and quality certification activities that improve skills and processes. Hard Interventions involve developing tangible infrastructure such as Common Facility Centres (CFCs), testing labs, ETPs, or packaging facilities shared by all cluster members to reduce individual costs.
Government Grant Assistance: The State provides substantial financial support generally covering up to 70% of the project cost for CFCs and 90% for soft interventions, while the remaining cost is shared among the cluster units through the SPV. This makes large-scale infrastructure projects financially feasible for small enterprises.
Focus on Backward Areas:Priority is given to clusters located in industrially backward zones Category D, D+, and No-Industry districts to promote balanced regional development and employment generation. MSMEs in such regions can avail higher funding support and faster approvals.
Implementation through DICs: The District Industries Centres (DICs) are the local coordinating bodies. They identify potential clusters, help with SPV formation, guide project preparation, and monitor implementation. This makes the process easier for MSMEs that may not have prior experience with government schemes.
Integration with Central MSE-CDP Scheme: MSICDP follows the same structure as the Government of India’s MSE-CDP and often co-funds projects. This ensures uniform standards, transparent project evaluation, and additional financial leverage when central funds are available.

Financial Assistance

Component	Assistance Provided	Detailed Explanation with Example
Soft Interventions	Up to 90% grant (State/Central share) of total project cost, subject to ceilings as per scheme.	For example, a cluster conducting a ₹10 lakh skill development project receives ₹9 lakh as grant, while the cluster contributes ₹1 lakh collectively.
Common Facility Centre (CFC)	Up to 70% grant of project cost for creation of CFCs or shared infrastructure.	Suppose a ₹5 crore project to establish a dyeing & finishing centre is sanctioned; the government may contribute ₹3.5 crore, and the cluster pays ₹1.5 crore.
Infrastructure Upgradation	Similar to CFC, with up to 60–70% funding for industrial area improvements such as roads, power lines, and ETPs.	For a ₹2 crore road and waterline project, ₹1.2–₹1.4 crore is grant-funded, reducing cost for all units.
Diagnostic Study / Project Preparation	Partial assistance for baseline studies, DPR, and cluster formation.	If ₹5 lakh is required for the study, the Government may fund ₹4.5 lakh, with ₹0.5 lakh from the SPV.

Eligibility Criteria

Who Can Apply:

Registered Industrial Associations / Co-operative Industrial Estates / SPVs (Special Purpose Vehicles) representing a minimum number of MSME units.
Clusters with clear focus on manufacturing, service, or artisan-based industries.
Units located within Maharashtra and formally registered with DIC or Directorate of Industries.

Who Cannot Apply:

Individual enterprises or Clusters with fewer than the prescribed number of participating MSMEs.
Associations without audited accounts or legal registration.
Clusters not aligned with state priority sectors or industrial policy focus areas.

Documents Required

Registration certificate of association or SPV
Detailed Project Report (DPR) with financial outlay
List of member units and their Udyam registration numbers
Land ownership or lease documents for CFC site
Audited financial statements of association (last 3 years)
Consent letters from member units
Environmental clearance (if required)
Bank details and PAN of SPV

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

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Option 2: Government Process

Form an SPV (registered society / trust / company) representing the cluster.
Prepare a comprehensive DPR with project cost, objectives, and expected benefits.
Submit proposal to the District Industries Centre (DIC) or Directorate of Industries for state-level screening.
After appraisal and approval by the State Level Steering Committee (SLSC), project is recommended for funding and implementation.

Option 3: Offline Submission
Applications can also be submitted in hard copy at the District Industries Centre along with a soft copy of the DPR and cluster details.