Lok Sabha Question No. 3841 (UNSTARRED), answered on 2023-03-23
Subject: Holistic Development of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Supriya Sadanand Sule

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3841 TO BE ANSWERED ON 23.03.2023

## HOLISTIC DEVELOPMENT OF MSMEs

## 3841.  SHRIMATI SUPRIYA SULE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government has adopted the cluster approach for holistic development of Micro, Small and Medium Enterprises (MSMEs) in the country;
- (b) if so, the details thereof and the criteria fixed for selection of locations for the said purpose;
- (c) the details of MSME clusters that have become functional in Maharashtra; and
- (d) the details of the steps taken/being taken by the Government to expedite making all MSME clusters functional?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

- (a): Ministry  of  MSME  is  implementing  Micro  and  Small  Enterprises  -  Cluster Development  Programme  (MSE-CDP)  across  the  country  including  Maharashtra.  The objective  of the scheme is to enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs) for their holistic development adopting cluster approach through financial  assistance  as  Government  of  India  (GoI)  grant  for  establishment  of  Common Facility Centers (CFCs) in the existing clusters and for establishment of new / up-gradation of existing Industrial Areas / Estates / Flatted Factory Complex.

Ministry  of  MSME  also  implements  the  Scheme  of  Funds  for  Regeneration  of Traditional  Industries  (SFURTI)  for  making  Traditional  Industries  more  productive  and competitive  by  organizing  the  Traditional  Industries  and  artisans  into  clusters  to  provide support for their long-term sustainability and economies of scale.

- (b): MSE-CDP is a demand driven Central Sector Scheme, wherein, State Government sends proposals for establishment of Common Facility Centers (CFCs) and establishment /up-gradation of Infrastructure Development (ID) projects as per requirements in clusters.

SFURTI  is  also  a  demand  driven  Central  Sector  Scheme  which  aims  to  cover traditional enterprises from  diverse geographies of the country, with preference to uncovered  areas, new  districts, including niche traditional industries. Proposals are encouraged from all corners of the country through the network of Nodal agencies including NER,  Hilly  areas,  tribal  areas,  aspirational  districts,  etc.  The  projects  will  be  appraised based on the merit, strategies, project viability, impact on artisans, etc. as per the scheme guidelines

(c): 30 projects for setting up of Common Facility Center (CFC) under MSE-CDP have been approved in Maharashtra, out of which, 14 projects are completed.

Whereas,  under  SFURTI  27  clusters  have  been  approved  in  Maharashtra,  out  of which, 16 clusters are functional.

(d): The several steps in processing the application have been simplified to expedite the approval as well as functioning of projects under MSE-CDP as per the new guidelines.

Under SFURTI, timeline for implementation of SFURTI clusters were 3 years which has been reduced to 12-18 months w.e.f. March, 2020.

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