Important Skill Development and Infrastructure Support Schemes for Micro, Small and Medium Enterprises (MSMEs)

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Skill Development and Training to MSMEs       

1) Entrepreneurship and Skill Development Programme (ESDP)

Description: The objective of the programme is to motivate young persons representing different sections of the society including SC/ST/ Women, Physically Handicapped, Ex-servicemen and below poverty line (BPL) persons to consider self-employment or entrepreneurship as one of the career options.

The ultimate objective is to promote new enterprises, capacity building of existing MSMEs and inculcating entrepreneurial culture in the country.

Nature of Assistance: Assistance provided for Industrial Motivational Campaign (IMC), Entrepreneurship Awareness Programmes and Entrepreneurship-cum-skill Development Programmes, Management Development Programmes and Mega Events.

Intended Beneficiary: Youths representing different sections of the society including SC/ST/Women, Physically Handicapped, Ex-servicemen and Below Poverty Line(BPL) persons and Existing MSMEs.

How to apply: ESDP Programmes are implemented through MSME-DIs/TCs.

Infrastructure support to MSMEs

1) Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Description: The main objectives of the scheme is to organize the traditional industries and artisans into clusters in order to make them competitive and provide support for their long- term sustainability.

Nature of Assistance: The scheme would cover three types of interventions: ‘Soft Interventions’, ‘Hard Interventions’ and ‘Thematic Interventions’. The

Project outlay for various clusters: Regular Clusters (upto 500 artisans) – Rs. 2.50 Crore per Cluster; Major Cluster (more than 500 artisans) – Rs. 5.00 Crore per Cluster; Soft Interventions: 10% of hard interventions with maximum ceiling of Rs. 25.00 lakhs (100% scheme funding); Hard Interventions: As per project requirement. The financial assistance provided for any specific project shall be subject to a maximum of Rs. 5 crore.

Who can apply: Non-Government Organizations (NGOs), Institutions of the Central and State Governments and Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), etc. with suitable expertise to undertake cluster development. (ii) Private Sector participation is also encouraged for the implementation of cluster projects. Corporate entities can also take up projects directly by forming cluster-specific SPVs.(iii) Corporate and Corporate Social Responsibility (CSR) foundations with expertise in cluster development are encouraged to participate as Implementing Agencies. In case where a private sector entity is the IA, it shall contribute at least 50% of the total project cost excluding the cost of land.

How to apply: The eligible agency/ organization has to submit the proposal to any of the other designated Nodal Agencies under the scheme (as mentioned in the guidelines and as appointed from time to time) for onward submission to Scheme Steering Committee for approval.

2) Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

Description: The scheme supports financial assistance for establishment of Common Facility Centres (CFCs) for Testing, Training Centres, R&D, Effluent Treatment, Raw Material Depot, Complementing Production Processes etc. and to create/upgrade infrastructural facilities in the new/existing industrial areas/clusters of MSEs such as Flatted Factory Complex, power distribution network, water, telecommunication, drainage and pollution control facilities, roads, banks, raw materials, storage and marketing outlets, common service facilities and technological back­up services for MSEs in the new/existing industrial estates/areas. Marketing Hubs/Exhibition Centres by Associations, Thematic Interventions and Support to State Innovative Cluster Development Programme are also parts of the scheme.

Nature of Assistance: Common Facility Centres (CFC): The GoI grant will be restricted to 70% of the cost of Project of maximum Rs. 20.00 Crore. GoI grant will be 90% for CFCs in North-East & Hilly States, Island territories, Aspirational Districts/ LWE affected Districts, Clusters with more than 50% (a) Micro/Village, (b) Women owned, (c) SC/ ST units. The cost of Project includes cost of Land (Subject to maximum of 25% of Project Cost). (ii) Infrastructure Development: GoI grant will be restricted to 60% of the cost of project (Rs. 10.00 Crore for Industrial Estate & Rs. 15.00 Crore for Flatted Factory Complex). GoI grant will be 80% for Projects in North-East & Hilly States, Island territories, Aspirational Districts/ LWE affected Districts industrial areas/estates/Flatted Factory Complex with more than 50% a: micro/village or b: women owned or c: SC/ST units. (iii) 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 BMI rating of Gold Category and above from MABET (QCI) and 80% for Associations of Women Entrepreneurs. Remaining project cost is to be borne by SPV/State Government. (iv) Thematic Interventions: The GoI 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. (v) Support to State Innovation Cluster Development Programme: The GoI fund would be limited to State Government 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, Island territories, Aspirational Districts/ LWE affected Districts, as well as for projects where beneficiaries are SC/ ST/ Women owned enterprises.

Who can apply: Clusters, Industrial Associations/ Consortia.

How to apply: Online applications can be filled at 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., MSME- DIs. The proposals are to be approved by the Steering Committee of MSE-CDP. Website:

For further details on eligibility and how to apply , please get in touch with us on email at or call India MSME Helpdesk Tel. +91-22-28816486 or fill up the enquiry page on our website so we can get in touch with you.