Maharashtra State Industrial Cluster Development Programme (MSI-CDP)

    Last reviewed: 17 October 2026

    Maharashtra State Industrial Cluster
    Development Programme

    The Maharashtra State Industrial Cluster Development Programme (MSICDP) is a Government of Maharashtra initiative under the Industries, Energy & Labour Department, notified vide GR No. SME-2013/CR-207/Industry-7 dated 25 February 2014, to strengthen micro and small enterprises through cluster-based development, capacity building and shared industrial infrastructure.

    Implementing Agency: Directorate of Industries, Mumbai — through District Industries Centres (DICs)
    Original GR: 25 February 2014 (with subsequent amendments in 2019, 2021 and 2025 policy updates)
    Main Beneficiaries: Groups of micro and small enterprises (minimum 10 units)
    Key Delivery Vehicle: Special Purpose Vehicle (SPV) registered under Section 25 of the Companies Act, 1956
    Core Output: Common Facility Centre (CFC) — shared industrial facility for the cluster
    View Assistance Types Application Process

    🏭 MSI-CDP

    Govt. of Maharashtra Up to 90% Grant GR: 25 Feb 2014
    ₹20 Cr
    2025 Policy Limit
    Announced increase — verify operative GR
    ₹10 Cr
    2019 CFC Ceiling
    70% of project cost or ₹10 Cr, whichever lower
    ₹5 Cr
    Original 2014 Ceiling
    70% of project cost or ₹5 Cr
    10+
    Min. Cluster Units
    Micro & Small enterprises
    Important Note: MSICDP assistance is subject to the applicable Government Resolutions, amendments, operational instructions, project appraisal and approval by the competent authority. The publication of a funding ceiling does not mean that every cluster is entitled to receive that amount. Verify current rules with the Directorate of Industries or the concerned DIC before making commitments.

    Scheme Overview

    Key facts about MSICDP at a glance, as per the GR dated 25 February 2014

    Particular Details
    Full NameMaharashtra State Industrial Cluster Development Programme
    Common AbbreviationMSICDP / MSI-CDP
    Administrative DepartmentIndustries, Energy & Labour Department, Government of Maharashtra
    Implementing AgencyDirectorate of Industries, Mumbai — through District Industries Centres (DICs)
    Original Government ResolutionGR No. SME-2013/CR-207/Industry-7 dated 25 February 2014
    Main BeneficiariesGroups of micro and small enterprises (minimum 10 enterprises)
    ApproachCluster-based development, capacity building, and shared industrial infrastructure
    Key Delivery VehicleSpecial Purpose Vehicle (SPV) registered under Section 25 of Companies Act, 1956
    Key Project ComponentCommon Facility Centre (CFC)
    Application RouteProposal-based process through the concerned DIC and Directorate of Industries

     Objectives of MSICDP

    • Strengthen micro and small enterprises through cluster-based development
    • Improve productivity and competitiveness of participating enterprises
    • Encourage technology adoption and industrial modernisation
    • Improve product quality and access to testing and technical facilities
    • Address shared infrastructure and production constraints
    • Develop common facilities that individual enterprises may find difficult to establish
    • Improve technical knowledge, workforce skills and enterprise capabilities
    • Support appropriate environmental and common-infrastructure solutions
    • Strengthen long-term development of industrial clusters

     What Is an Industrial Cluster?

    As per the GR, an Industrial Cluster means a group of industrial enterprises located in a specific geographical area, engaged in the same or similar type of production or service, and having commonality in:

    • Production processes
    • Business opportunities
    • Business defects and deficiencies
    • Common risks

    Simply having several businesses in the same industrial area does not by itself establish eligibility. The cluster must meet the programme's applicable requirements and be formally recognized through the DIC-led process.

    Key Definitions (Per GR)

    Official definitions from the Government Resolution dated 25 February 2014

    Term Definition as per GR
    Preliminary Report An initial report prepared by the General Manager, District Industries Centre (DIC), describing the characteristics of a suitable industrial cluster. Format is as per the Annexure-1 attached to the GR.
    Soft Intervention / Capacity Building Programmes for technical assistance to cluster units, enhancing entrepreneurial competitiveness and improving production. Includes expert lectures, study tours, training, exhibitions, seminars, workshops, etc.
    Diagnostic Study Report (DSR) A detailed study report diagnosing defects and deficiencies in the cluster's production processes and recommending corrective measures and action plans.
    Hard Intervention / CFC Creation of static and visible assets — i.e., establishment of a Common Facility Centre. May include common processing centre, common design centre, testing centre, training centre, packaging centre, R&D centre, CETP, marketing display / sales centre, common logistics centre, common raw material bank, sales depot, etc., as approved by the State Level Steering Committee.
    Detailed Project Report (DPR) A detailed project report establishing the technical and financial feasibility of the Common Facility Centre (CFC) for the industrial cluster.
    Special Purpose Vehicle (SPV) A legally valid entity established under Section 25 of the Companies Act, 1956 for the establishment, implementation, daily use and maintenance of the Common Facility Centre. An open-ended organisation with permanent membership available to other micro and small enterprise members of the cluster.

    Types of Assistance Under MSICDP

    Four progressive stages — from diagnostic study to a fully operational Common Facility Centre

    1. Diagnostic Study Report (DSR)

    90% Grant Max ₹1.35 Lakh
    • Max project cost: ₹1.50 lakh
    • State grant: 90% = ₹1.35 lakh
    • Beneficiary share: 10%
    • Cost is part of Capacity Building Program budget
    • Approved by State Level Coordination Committee
    Stage 1 View Details

    2. Capacity Building (Soft Intervention)

    90% Grant Max ₹9 Lakh
    • Max program cost: ₹10 lakh (incl. DSR)
    • State grant: 90% = up to ₹9 lakh
    • Beneficiary share: 10%
    • Training, workshops, study tours, exhibitions
    • Grant paid in 2 installments (60% first)
    Stage 2 View Details

    3. Detailed Project Report (DPR)

    90% Grant Max ₹2.25 Lakh
    • State grant: 90% up to ₹2.25 lakh
    • Beneficiary share: 10%
    • Appraised by bank / SIDBI / SICOM / NABARD
    • Includes IRR, DSCR, BEP, sensitivity analysis
    • Cost part of pre-operative expenses
    Stage 3 View Details

    4. Common Facility Centre (Hard Intervention)

    70% / 80% / 90% Max ₹10 Cr
    • Standard: 70% or ₹5 Cr (2014) → ₹10 Cr (2019)
    • Special: 80% for 100% micro / >50% women (2014)
    • Special: 90% for 100% women / SC-ST (2021)
    • Machinery, testing, R&D, training, CETP, etc.
    • Approved by State Level Apex (Steering) Committee
    Main Grant View Details

    Special Purpose Vehicle (SPV)

    Mandatory Section 25 Company
    • Registered under Section 25, Companies Act 1956
    • Open-ended — permanent membership for cluster units
    • Minimum 10 micro/small enterprise members
    • No single member > 10% shareholding
    • 1 Industries Dept. officer on Board of Directors
    Required View Details

    Eligibility & Beneficiary Categories

    Min. 10 Units Micro & Small
    • Location as per 2019 PSI classification (C, D, D+, Naxal-affected)
    • Enterprise must be registered micro or small
    • Special: 100% micro / >50% women clusters
    • Special: 100% women / 100% SC-ST clusters
    • Individual enterprise cannot apply alone
    Conditions View Details

    1. Diagnostic Study Report (DSR)

    Max Cost: ₹1.50 Lakh 90% Grant Up to ₹1.35 Lakh

    As per the GR, the DSR is an extremely important study report that diagnoses the defects and deficiencies in the cluster's production processes, and clearly explains the social and economic benefits that will accrue from implementing the project. It establishes the rationale for the proposed intervention.

    The DSR May Examine
    • Profile of participating enterprises
    • Existing production processes and technology
    • Infrastructure and machinery gaps
    • Testing, quality-control and certification needs
    • Workforce skills and training requirements
    • Marketing and market-access constraints
    • Shared infrastructure requirements
    • Proposed interventions and expected benefits
    90% State Grant — Up to ₹1.35 Lakh
    Maximum DSR project cost: ₹1.50 lakh  |  State grant: 90% (up to ₹1.35 lakh)  |  Beneficiary share: 10%
    DSR preparation cost (after deducting state grant) is treated as part of the Capacity Building Program. Grant is released only after approval by the State Level Industrial Cluster Coordination Committee.

    2. Capacity Building Program (Soft Intervention)

    Max Program Cost: ₹10 Lakh 90% Grant Up to ₹9 Lakh

    The Capacity Building Program aims to enhance the capability of micro and small enterprise units, build their self-confidence and develop a positive approach. As per the GR, the program is designed based on the action plan presented in the DSR.

    Activities Covered (Per GR)
    • Expert lectures and knowledge sessions
    • Study tours
    • Training programmes
    • Participation in exhibitions and trade fairs
    • Seminars and workshops
    • Cluster website, brochure, brand and logo creation
    • ICT implementation in the cluster
    • Demonstrative setup (to be converted into a skill development centre)
    Funding Structure
    Item Amount
    Maximum Program Cost₹10.00 lakh (inclusive of DSR cost of max ₹1.35 lakh)
    State Government Grant90% of approved project cost
    Beneficiary ContributionMinimum 10% of approved project cost
    Treatment in Project CostTreated as pre-operative and preliminary expenses
    90% State Grant — Up to ₹9 Lakh
    Maximum program cost: ₹10 lakh  |  State grant: 90%  |  Beneficiary share: 10%
    The grant for Capacity Building is released in two installments. The first installment of 60% is released only after confirming that the beneficiaries have deposited their mandatory 10% contribution.
    Optional exit: If the State Level Industrial Cluster Coordination Committee is satisfied that after completing the Capacity Building Program, the cluster does not need the next stage (CFC / Hard Intervention), the cluster may exit the MSICDP scheme.

    3. Detailed Project Report (DPR)

    90% Grant Up to ₹2.25 Lakh

    A Detailed Project Report establishes the technical and financial feasibility of the proposed Common Facility Centre. Preparation of a DPR does not guarantee project sanction.

    Key Elements of the DPR (Per GR Annexure-3)
    • Cluster profile and identified common needs
    • Project objectives and proposed facilities
    • Machinery, equipment and technical specifications
    • Land, building and supporting infrastructure
    • Capital expenditure and operating costs
    • Beneficiary contribution and financing arrangements
    • Revenue and operating assumptions
    • Projected P&L and balance sheets
    • IRR, DSCR, BEP and sensitivity analysis
    • Cash flow and debt-service coverage
    • Implementation schedule
    • Facility-management and sustainability arrangements
    Appraisal & Approval Flow
    • SPV prepares DPR with required annexures and certificates
    • Submitted to GM, DIC — with District Committee recommendation (2 copies with all supporting documents)
    • Directorate of Industries reviews with expert / technical institution support
    • Project appraisal by Bank / SIDBI / SICOM / NABARD or other nominated financial institution
    • Appraisal report submitted to Development Commissioner (Industries) within 30 days
    • Final approval and cost sanction by State Level Steering Committee
    90% State Grant — Up to ₹2.25 Lakh
    State grant: 90% (up to ₹2.25 lakh)  |  Beneficiary share: 10%
    DPR preparation cost is treated as part of pre-operative expenses in the overall project cost.

    4. Common Facility Centre (CFC) — Hard Intervention

    Standard: 70% Special: 80% / 90% Max ₹10 Cr (2019)

    A Common Facility Centre is a shared industrial facility that provides infrastructure or services needed by participating enterprises. The proposed facilities must be justified by the cluster's actual requirements and accepted under the applicable project-cost rules. A list of possible facilities is not a guarantee that every item is eligible for grant.

    What a CFC May Include (Per GR)
    • Common Processing Centre (production line improvement, value addition)
    • Common Design Centre
    • Testing Centre
    • Training Centre
    • Packaging Centre
    • Research & Development Centre
    • CETP (Common Effluent Treatment Plant)
    • Marketing Display / Sales Centre
    • Common Logistics Centre
    • Common Raw Material Bank
    • Sales Depot
    • Other common facilities approved by State Level Steering Committee
    Funding Pattern — Evolution Over Time
    Provision Effective From Grant Formula
    Standard (Original) 2014 GR Lower of: 70% of total project cost OR ₹5.00 crore
    Special — 100% micro units OR >50% women entrepreneurs 2014 GR 80% of total project cost (subject to the applicable maximum ceiling)
    Standard (Revised) 2019 Amendment Lower of: 70% of total project cost OR ₹10.00 crore
    Special — 100% women OR 100% SC/ST clusters 2 August 2021 GR Up to 90% of project cost, maximum ₹10.00 crore, with defined building-construction relaxation
    Policy announcement 2025 Policy Limit to be increased from ₹10 crore to ₹20 crore — policy statement only; operative GR awaited
    Important — Verify Before Use: The ₹20 crore figure is a policy statement, not an operative grant ceiling. It does not by itself answer operational questions about the revised percentage, eligible project costs, interaction with special-category provisions, or implementation and disbursement conditions. Obtain written confirmation of the operative Government Resolution and implementation instructions from the Directorate of Industries or the concerned DIC before using ₹20 crore as the current assistance limit for a specific proposal.
    Grant Release — CFC (2019 Amendment: 3-Stage Pattern)
    Stage Share Release Trigger
    1st Installment 20% After completion of the prescribed procurement process and submission of the required procurement report
    2nd Installment 60% After physical verification of installed machinery and equipment, and submission of the applicable utilisation certificate
    3rd Installment (Final) 20% After certification of successful project completion
    Note: The original 2014 GR provided for grant release in two installments for CFC. The 2019 amendment introduced the three-stage 20% / 60% / 20% pattern shown above. Later orders and individual project sanctions may further affect the instalment pattern — verify before budgeting.

    Special Purpose Vehicle (SPV)

    Section 25 Company Open-Ended Min. 10 Members

    As per the GR, the SPV is the legally valid entity established under Section 25 of the Companies Act, 1956 for the establishment, implementation, daily use and maintenance of the Common Facility Centre. It is an open-ended organisation with permanent membership available to other micro and small enterprise members of the cluster.

    Mandatory SPV Conditions (Per GR)
    • Registered under Section 25, Companies Act 1956
    • Open-ended — permanent membership for micro & small units
    • Minimum 10 micro / small enterprise members
    • No upper limit on total membership
    • Each member's contribution ≥ 10% of project cost
    • No single member holding > 10% shareholding
    • Upfront contribution deposited before grant release
    • For bank-financed projects — bank guarantee before grant release
    • One officer from Industries Department on the Board
    • Rotational directorship with SC/ST/Women representation
    PPP Mode & Two-Tier Agreement

    The CFC is a public project and will be implemented on Public-Private Partnership (PPP) mode. A two-tier agreement will be executed between the Government of Maharashtra and the SPV. The SPV's by-laws must include provisions to make it an effective working organisation.

    Main SPV Responsibilities
    • Organising participating enterprises and member commitments
    • Preparing and submitting prescribed project documents
    • Arranging beneficiary contribution and other financing
    • Securing land, premises and relevant permissions
    • Following applicable procurement procedures
    • Maintaining project and financial records
    • Operating and maintaining the CFC
    • Setting service charges (not below market rate)
    • Planning operating expenses and repairs
    • Ensuring long-term financial sustainability
    Cost Overrun: If the total project cost exceeds the approved project cost for any reason, the excess amount must be borne by the SPV. The State Government will not be responsible for any financial liability arising from the operation of the CFC.

    Eligibility & Beneficiary Categories

    Micro & Small Only Min 10 Enterprises Special Categories
    Category Requirement (Per GR)
    Location Eligibility As per the 2019 amendment, eligible locations include Category C, Category D, Category D+ and no-industry areas under the Package Scheme of Incentives, 2019, along with eligible Naxal-affected areas or talukas. Verify exact classification with the DIC under the applicable government order.
    Enterprise Eligibility Only micro and small enterprises are eligible. Participating units must be formally registered and located in the cluster's geographic area.
    Minimum Cluster Size The original framework specified a minimum of 10 participating micro and small enterprises. Verify whether subsequent orders modify this requirement.
    Special Category — 100% Micro Units If the cluster has 100% micro enterprise units, assistance of 80% of project cost is available (per original 2014 GR).
    Special Category — More Than 50% Women If the cluster has more than 50% women entrepreneurs, assistance of 80% of project cost is available (per original 2014 GR).
    Special Category — 100% Women / 100% SC-ST Per the 2 August 2021 GR, clusters consisting entirely of women entrepreneurs or entirely of SC/ST entrepreneurs are eligible for assistance of up to 90% of project cost, maximum ₹10 crore, with a defined relaxation on building-construction expenditure.
    Exclusion An individual enterprise cannot apply for CFC grant alone. The programme is strictly cluster-based with an SPV structure.
    Do not assume that every business in Maharashtra, every MIDC estate or every industrial area automatically qualifies. The cluster's location, enterprise composition and SPV structure must all meet the applicable requirements.

    Eligible Project-Cost Components

    Cost components considered for an approved CFC, subject to their specific conditions

    • Land — capped at 25% of total project cost
    • Building construction
    • Pre-operative and preliminary expenses
    • Machinery and equipment
    • Other eligible fixed assets
    • Water and electricity infrastructure
    • Margin money for working capital (where permitted)
    Land & Building Conditions (Per GR)
    • Land cost capped at 25% of total project cost
    • Land and building cost must be fully borne by the SPV
    • If existing land/building is made available to the beneficiary at a concessional rate — the difference between government / co-operative bank valuation and the actual cost borne will be treated as the beneficiary contribution
    • For leased premises — minimum 10-year lease required
    • The 2 August 2021 GR introduced a specific relaxation on building-construction expenditure for qualifying women / SC-ST clusters
    Verify with DIC: Current eligible-cost rules, land valuation requirements, lease conditions and treatment of existing assets should be confirmed in writing before finalising the DPR or making any financial commitments.

    Approval & Committee Structure

    Four-tier governance structure as prescribed in the GR dated 25 February 2014

    District Level Coordination Committee
    1. General Manager, District Industries Centre — Chairman
    2. Project Director, District Rural Development Agency — Member
    3. District Officer, Mahila Arthik Vikas Mahamandal — Member
    4. District Manager, Lead Bank — Member
    5. Principal, Government Technical Institute — Member
    6. District Vocational Education & Training Officer — Member
    7. Project Officer, MCED — Member
    8. NABARD Officer — Member
    9. Two representatives of major banks — Members
    10. Two industrial associations — Members
    11. Cluster Development Executive Officer, DIC — Member Secretary
    12. Special Invitees (financial institutions, technical research institutions, etc.)
    State Level Coordination Committee
    1. Development Commissioner (Industries) — Chairman
    2. Chief Executive Officer, Khadi & Village Industries Board — Member
    3. Executive Director, Maharashtra Centre for Entrepreneurship Development (MCED) — Member
    4. Managing Director, MSSIDC — Member
    5. Joint Director of Industries, concerned Regional Office — Member Secretary
    6. General Manager, concerned District Industries Centre — Member
    Divisional Level Committee
    1. Joint Director of Industries, concerned Regional Office — Chairman
    2. Representatives of Industrial Cluster / SPV — 3 Members
    3. Special Invitees (financial institutions, technical / research institutions)
    4. General Manager, concerned DIC — Member Secretary

    Functions: Procurement of machinery and equipment per Maharashtra Government guidelines; physical verification of fixed assets; submission of completion reports.

    State Level Steering (Apex) Committee
    1. Principal Secretary (Industries) — Chairman
    2. Secretary (Finance) — Member
    3. Secretary (Planning) — Member
    4. Managing Director, SICOM — Member
    5. Chief Executive Officer, MIDC — Member
    6. Development Commissioner (Industries) — Member
    7. Chief Executive Officer, KVIB — Member
    8. Managing Director, MSSIDC — Member
    9. Joint Director / Supervisory Industries Officer, Directorate of Industries — Member Secretary
    10. Representative, Project Appraisal Agency — Invitee
    11. Special Invitees (financial institutions, technical / research institutions)

    Role: The supreme (apex) committee granting final approval to CFC proposals under MSICDP. Reviews the DPR and determines the final project cost and grant.

    Application Process

    Stage-wise procedure as per the GR — proposal-based through DIC and Directorate of Industries

    1
    Cluster Identification

    GM, DIC identifies a suitable eligible cluster and prepares the Preliminary Report (Annexure-1)

    2
    Preliminary Report Approval

    District Level Coordination Committee reviews and approves the Preliminary Report

    3
    DSR Preparation

    SPV / Promoter institution prepares DSR with expert institution support (within 6 months of preliminary approval)

    4
    DSR & Capacity Building Approval

    DSR and proposed Capacity Building Program approved by State Level Coordination Committee

    5
    Capacity Building Execution

    SPV executes approved capacity building activities through GM, DIC

    6
    DPR Preparation

    SPV prepares DPR and submits to GM, DIC — with District Committee recommendation to Directorate of Industries

    7
    Technical & Financial Appraisal

    Directorate of Industries reviews with expert support; appraisal by Bank / SIDBI / SICOM / NABARD

    8
    Final Approval

    State Level Steering (Apex) Committee grants final approval and sanctions project cost & grant

    9
    Procurement & Verification

    Divisional Committee conducts procurement; physical verification of installed machinery

    10
    CFC Implementation

    SPV completes CFC installation per approved scope within 24 months

    11
    Completion Report

    GM, DIC submits completion report to Directorate of Industries with utilisation certificates

    12
    Final Grant Release

    Balance grant released per applicable instalment pattern and completion certification

    Preliminary Approval Validity: The preliminary approval is valid for 6 months from the date of approval. The SPV must prepare and submit the DSR within this period. Extension may be granted with the approval of the District Level Industrial Cluster Coordination Committee.

    Documents Checklist

    Preparation list — obtain the exact checklist from the implementing authority

     Cluster & SPV Documents
    • Cluster profile and list of participating enterprises
    • Enterprise registration and Udyam details
    • SPV incorporation certificate (Section 25 Company)
    • Memorandum & Articles of Association of SPV
    • SPV governance and member-shareholding details
    • Member resolutions and participation commitments
    • Preliminary Report (Annexure-1)
    • Diagnostic Study Report (DSR)
     Project & Financial Documents
    • Detailed Project Report (DPR) as per Annexure-3
    • Land ownership, possession, valuation or lease documents
    • Building plans and relevant permissions
    • Machinery and equipment specifications / quotations
    • Project-cost estimates and financing arrangements
    • Proof of beneficiary contribution
    • Bank sanction (if bank-financed)
    • Procurement, inspection, utilisation certificates and completion records

    This is a preparation checklist, not a claim that every item is mandatory in every case. Obtain the exact document requirements from the concerned DIC.

    Project Timelines

    As per the GR, the overall MSICDP cluster project is expected to complete within 3 years 6 months

    Sr. No. Activity Responsible Officer Completion Period
    1 Capacity Building Program General Manager, DIC 18 months
    2 Common Facility Centre completion and commissioning Joint Director of Industries, Divisional Office 24 months
    Total Project Duration: As per the GR, the overall MSICDP cluster project is expected to complete within 3 years and 6 months. Preliminary approval for DSR preparation is valid for 6 months (extendable with District Committee approval).

    Monitoring, Evaluation & Management Cost

    As per Section 10 and Section 11 of the GR

     Monitoring & Evaluation
    • The Office of the Development Commissioner (Industries) will directly monitor scheme progress through its district and divisional offices
    • Periodic review of work and progress
    • State / Central level institutions may be engaged to strengthen industrial clusters
     Management Cost (2%)

    2% of the approved funds (from the total budgetary provision) will be reserved for project monitoring and management costs. This will be utilised by the Directorate of Industries for:

    • Awareness campaigns and information sessions
    • Officer workshops and training
    • IT systems and reporting infrastructure
    • Review meetings and office expenses

    Responsibilities After Approval

    Approval is only the beginning — long-term implementation and sustainability matter equally

    • Providing the required beneficiary contribution on time
    • Arranging balance funding and bank guarantee (if applicable)
    • Securing land, premises and statutory approvals
    • Implementing the approved project scope only
    • Following government procurement procedures
    • Maintaining project and financial records
    • Operating and maintaining the CFC
    • Setting service charges (not below market rate)
    • Managing operating expenses and repairs
    • Ensuring long-term financial sustainability
    Cost Overruns: Government assistance should not be assumed to cover all operating expenses, cost overruns or financial liabilities. Any excess cost beyond the approved project cost must be borne by the SPV.

    Common Mistakes to Avoid

    1. Assuming any industrial cluster in Maharashtra is eligible
    2. Treating MSICDP as an individual enterprise's machinery subsidy
    3. Forming an SPV without checking ownership & governance rules
    4. Assuming the original 2014 provisions remain unchanged
    5. Quoting ₹20 crore as a guaranteed grant without confirming operative rules
    6. Applying special-category provisions to a cluster that doesn't qualify
    1. Treating historical DSR/DPR/capacity-building limits as current without verification
    2. Starting procurement or construction without required approvals
    3. Assuming preliminary approval equals final CFC sanction
    4. Underestimating beneficiary contribution, balance funding and operating costs
    5. Treating a grant ceiling as the amount every project will receive
    6. Relying on unofficial summaries instead of the actual GRs and written guidance

    Need Expert Assistance?

    Get support for cluster structuring, SPV formation, DSR/DPR preparation, funding assessment and application through the applicable District Industries Centre and Directorate of Industries.

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    Frequently Asked Questions

    Key points about the MSICDP scheme

    What is MSICDP?

    MSICDP is the Maharashtra State Industrial Cluster Development Programme, notified vide GR dated 25 February 2014. It supports eligible groups of micro and small enterprises through cluster-level capacity building, common infrastructure and approved Common Facility Centre projects.

    Can a single enterprise apply for a CFC grant?

    No. The programme is cluster-based. The proposal must meet the applicable participation, SPV and project requirements. An individual enterprise cannot claim CFC assistance as a standalone machinery subsidy.

    What is the minimum number of enterprises required?

    The original 2014 GR specified at least 10 participating micro and small enterprises. Verify whether subsequent orders or a specific project category modify this requirement.

    What is the standard grant percentage for a CFC?

    The 2014 GR specified 70% of approved project cost or ₹5 crore, whichever is lower. The 2019 amendment increased the ceiling to ₹10 crore. Special provisions apply for qualifying clusters. The currently applicable formula must be confirmed with the implementing authority.

    Is a subsidy of up to ₹20 crore available?

    The Maharashtra Industries, Investment & Services Policy 2025 states the State will increase the MSICDP CFC fiscal-assistance limit from ₹10 crore to ₹20 crore. However, this is a policy statement. Confirm the operative GR, applicable percentage and eligibility conditions before relying on this figure for a new project.

    Who qualifies for higher assistance?

    Two special provisions apply: (a) as per the 2014 GR — 80% assistance for clusters with 100% micro units OR more than 50% women entrepreneurs; (b) as per the 2 August 2021 GR — 90% assistance (max ₹10 crore) for clusters consisting entirely of women entrepreneurs or entirely of SC/ST entrepreneurs.

    Does MSICDP cover the full project cost?

    Not necessarily. Only eligible and approved costs are considered under the applicable funding pattern. The SPV must contribute its share (minimum 10% of project cost) and arrange any additional financing.

    Can an existing building or leased premises be used?

    Yes, subject to conditions. The original guidelines specified a minimum 10-year lease for CFC premises. Verify current rules concerning lease tenure, valuation, eligible expenditure and treatment of assets with the DIC.

    Is approval guaranteed if all documents are submitted?

    No. A complete application does not guarantee approval. The project is subject to eligibility checks, technical and financial appraisal, and the prescribed committee approvals.

    Where should a cluster begin?

    Start with the concerned District Industries Centre (DIC). Ask for the latest MSICDP Government Resolutions, location eligibility, funding pattern, current application format, required documents and competent approval authority.

     Official Government References

    Applicants should consult the original GR and subsequent amendments together. A policy summary should not replace the official government orders.

    1. Official MSICDP scheme page — Commissionerate of MSME, Maharashtra
    2. Government Orders — Commissionerate of MSME, Maharashtra
    3. Policies and Guidelines — Commissionerate of MSME, Maharashtra
    4. Maharashtra Industries, Investment & Services Policy 2025 — Industries Department
    5. Government of Maharashtra GR Portal

    How Amplus Subsidy Solutions Can Help

    Amplus Subsidy Solutions is a government subsidy and industrial incentive consultancy supporting MSMEs and businesses with scheme research, eligibility assessment, documentation guidance and project-related incentive information.

    For cluster-based projects, we can help identify the applicable Government Resolutions, assess cluster and enterprise eligibility, support DSR/DPR preparation, assist with SPV structuring and documentation, and provide guidance on the approval and grant-release process through the District Industries Centre and Directorate of Industries.

    MSICDP funding provisions, ceilings and percentage limits are subject to amendments. Any assistance is subject to the applicable scheme rules, current government orders and confirmation from the implementing authority.

    Disclaimer: This webpage is intended for general information and preliminary project planning. It is not a government sanction, legal opinion or guarantee of subsidy eligibility. MSICDP provisions may be amended through Government Resolutions, policy decisions and implementation instructions. The applicable conditions for a particular project depend on its category, approval and the rules in force.

    Before making an investment, purchasing machinery, entering into a lease or submitting a claim, applicants should obtain confirmation from the Directorate of Industries or the concerned District Industries Centre regarding eligibility, funding percentage, maximum assistance, eligible expenditure, contribution requirements, documents, approval procedure and grant-release conditions.

    Last reviewed: 17 October 2026. Recheck the official government sources before publication and whenever a new resolution is issued.