Modified Comprehensive Power Loom Cluster Development Scheme (MCPCDS)
Key Features
- Cluster-based interventions for brown-field power-loom hubs: The scheme focuses on established power-loom clusters (rather than new ones) where there are many looms and gaps in infrastructure. Eg: clusters such as in Maharashtra or Tamil Nadu.
- Common Facility Centres (CFCs), Mini-Industrial Parks/Worksheds & core infrastructure: Eligible components include CFCs for pre-weaving & post-weaving processes (like yarn preparation, finishing, packaging), mini-industrial parks or worksheds with core infrastructure (roads, power, effluent treatment) to support units.
- Technology up-gradation, skill-development & need-based innovation: The scheme allows interventions for modernising machinery/looms, training of weavers, design & market linkage, and innovation in cluster processes.
- GoI subsidy contribution, with matching industry/private investment: The Government share is substantial (60 % of project cost) with private/donor investment (40 % in many cases). Matching may vary with approvals.
- Maximum grant ceiling and defined implementation process: GoI grant has a cap for each approved mega-cluster project (up to ~₹50 crore) and the implementation process includes selection of Special Purpose Vehicle (SPV), Detailed Concept Report (DCR), Detailed Project Report (DPR), phased fund release.
Financial Assistance
Eligibility Criteria
Who can apply:
- A SPV (Special Purpose Vehicle) formed by the cluster stakeholders (weavers, associations, industry bodies), or State nodal agency, which would implement the cluster project under MCPCDS.
- The cluster should typically consist of a significant number of decentralised powerlooms (e.g., around 5,000 or more) in a defined geographic area (brownfield cluster) needing infrastructure gaps.
Who cannot apply:
- Projects that are purely new green-field clusters may not qualify under “modified brownfield cluster” criterion as envisaged. (Implied in guidelines)
- Projects seeking funding for land acquisition via government grant are not eligible- the land cost is excluded from grant calculation
Documents Required
- SPV incorporation documents (MoA/AoA) and list of stakeholders/promoters.
- DPR for the powerloom cluster project: includes infrastructure plan, common facility plan, cost estimates, implementation schedule.
- Land allotment/letter of intent for land (since land cost not covered by grant).
- Industry commitment to invest their share (private share).
- Statutory clearances (environment, power/water, etc) as required.
- Bank guarantee or other financial instrument if required.
- Monitoring & evaluation plan and governance structure of SPV.
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: cluster promoters/industry associations in the powerloom sector aiming for mega-cluster status.
Option 2: Government Process via MoT / Textile Commissioner’s Office
- Identification of eligible cluster and formation of SPV.
- SPV prepares a Detailed Concept Report followed by Detailed Project Report (DPR) covering infrastructure needs, technology & skill interventions.
- Project is appraised, approved and sanction letter issued by appropriate authority (MoT/PAMC). Grant is released in instalments based on milestones.
- Implementation by SPV: land allotment, infrastructure development, unit allotment to weavers, monitoring & evaluation. Period typically up to 4 years from approval.
Option 3: Via State/Nodal Agency Cross-link
Often the State government industrial development corporation or textile department works as nodal agency to facilitate cluster/mega-cluster projects under MCPCDS.