For Common Facility Centres, any institution engaged in the development of the MSE sector, any Special Purpose Vehicle (SPV), State Government bodies, or any other agencies approved by the MSME can apply under this scheme.
The eligible agencies can apply by registering in the MSE-CDP portal and fulfilling all the eligibility criteria before submitting the project proposal.
For Infrastructure Development Projects, any State/Union Territory Government, Union Territory Agency, Integrated Industrial Park Development Agency or State Industrial Development Agency can apply under this scheme.
The eligible Special Purpose Vehicle (SPV) has to register at the MSE-CDP portal and fill out the application form with the required details. Once the application form is filled, it can be printed out and sent along with the project proposal and other desired documents.
The state government then sends the project proposal to the concerned MSME-DI for their recommendation and further, submission to the office of DC-MSME.
Once verified, Special Purpose Vehicle/State Government bodies can prepare a Detailed Project Report (DPR) and submit it for appraisal before the State Level Steering Committee (SLSC), constituted under the chairpersonship of the Chairman (MSME), for its recommendation and approval.
State Level Steering Committee (SLSC) is a body which is responsible for the appraisal of DPRs, recommendations, and monitoring implementation and operation of the approved projects.
The total cost of a project under this scheme can vary from Rs. 5 crores to Rs. 30 crores. However, the GoI grant is restricted to 60% - 80% of the total project cost, depending on the nature of the district, the cost of the project, and the type of project.Â
Common Facility Centre:
If the total project cost for Common Facility Centre is Rs. 5 crores to Rs. 10 crores, 70% of the total project cost would be borne by the GoI, 20% by the State government, and the remaining 10% has to be contributed by the Special Purpose Vehicle.
In Aspirational Districts, NER, Hill States and islands, the GoI contribution is 80% of the total project cost. 15% of the total project cost is borne by the State Government and 5% of the total project cost has to be contributed by the Special Purpose Vehicle.
The GoI contribution is limited to 60% of the total project cost if the total project cost for Common Facility Centre is Rs 10 crores to Rs. 30 crores. In this case, 20% of the total project cost would be borne by the State Government and the remaining 20% has to be contributed by the Special Purpose Vehicle.
In Aspirational Districts, NER, Hill States and islands, GoI contribution is 70% of the total project cost, 15% of the total project cost is borne by the State Government and 15% of the total project cost has to be contributed by the Special Purpose Vehicle.
Infrastructure Development:
For Infrastructure Development, the total project cost is usually limited to Rs 5 crores to Rs. 10 crores and Rs. 5 crores to Rs. 15 crores. About 50% and 60% of the total project cost, for the respective case, is borne by the GoI and the rest by the respective State Government.
In Aspirational Districts, NER, Hill States and islands, the GoI contribution for project costs of Rs. 5 crores to Rs. 10 crores and Rs. 5 crores to Rs. 15 crores is 70% and 60% respectively. The rest of the project cost has to be borne by the State Government.
Special Purpose Vehicle is an entity that is created to look after cluster operations and ensure its sustainability after the project implementation period is over.
SPVs can also directly contribute the State Government’s share for either type of project. In such cases, the projects are implemented through MSME Development Institutes.
The funding pattern for Common Facility Centers and Infrastructural Development projects is identical.
50% of the approved GoI grant would be transferred to the SPV after submission of required documents along with the proof of release of SPV contribution.
On utilisation of the 1st instalment of funds, SPV/State government can request for the 2nd instalment, i.e. 40% of the approved GoI grant after submission of utilisation certificate and other required documents.
After the completion of the project SPV/State government can request for the 3rd instalment, i.e. 10% of the approved GoI grant, after submission of the completion report, utilisation report, and other required documents.
The approved projects have to be completed within 18 months from the date of approval. A further extension period may be given for a project under consideration by the state government or the minister in charge of MSME.
After the completion of the project, SPV/State Governments are required to submit the completion report and other documents as proof of completion.
After three years of completion, the project will be evaluated by a third party with the help of DC, MSME.
