Lok Sabha Question No. 2808 (UNSTARRED), answered on 2024-12-12
Subject: Micro and Small Enterprises-Cluster Development Programme
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Navaskani K, Shri Dhairyasheel Sambhajirao Mane, Shri Selvam G, Shri Sudheer Gupta, Shri C N Annadurai, Shri Vishnu Dayal Ram

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

## LOK SABHA UNSTARRED QUESTION NO. 2808 TO BE ANSWERED ON 12.12.2024

## MICRO AND SMALL ENTERPRISES-CLUSTER DEVELOPMENT PROGRAMME

2808.

SHRI C N ANNADURAI:

SHRI VISHNU DAYAL RAM:

SHRI SELVAM G:

SHRI SUDHEER GUPTA:

SHRI NAVASKANI K:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

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

- (a)    details  of  clusters  supported  and  approved  under  the  Micro  and  Small  Enterprises-Cluster Development Programme (MSE-CDP) during last three years, State/UT-wise;
- (b)  the total budget allocation and fund disbursed for the programme along with the criteria for providing financial assistance to clusters under the MSE-CDP;
- (c)  whether all eligible clusters have received the approved funds in a timely manner and if so, number of clusters that faced delays in fund disbursement and reasons for such delay and corrective measures taken thereon;
- (d)  whether Government has identified new clusters for development under the MSE-CDP in the current financial year;
- (e)  if so, the current status and the details of these clusters including their location and focus industries along with the timeline for their development and the number of completed clusters, State-wise;
- (f) whether  the  Government  provides  financial  or  technical  assistance  to  existing clusters for modernization & capacity building under MSE-CDP;
- (g)   if so, amount disbursed for these purposes during the last three years;
- (h)      the  estimated  number  of  employment  opportunities  generated  through  clusters  supported  under MSE-CDP; and
- (i)    the specific measures being taken to expedite the development of pending clusters?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a), (b), (f) and (g): Micro  and  Small  Enterprises  Cluster  Development  Programme  (MSE-CDP)  is implemented for establishment of Common Facility Centers (CFCs) and establishment/up-gradation of Infrastructure  Development  (ID)  projects  in  industrial  estates/areas/flatted  factory  complexes  with  an objective to  enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs) for their holistic development addressing the common issues of the existing clusters.

The detail of projects supported for development of existing clusters State/UT-wise is annexed and the total budget allocation and fund disbursed under the MSE-CDP scheme during last three years (2021-22 to 2023-24) is given below:

| Year    | Budget Allocation   | Budget Utilized   |
|---------|---------------------|-------------------|
|         | (Rs. in crore)      | (Rs. in crore)    |
| 2021-22 | 156.50              | 135.59            |
| 2022-23 | 120.00              | 119.54            |
| 2023-24 | 180.00              | 178.96            |

As per the criteria laid in the guidelines of the scheme, GoI grants are released for implementation of projects in three installments after final approval, depending upon the implementation plan, progress made, requirements of funds, the utilization of  GoI grants released, etc.

(c) & (i): The  MSE-CDP scheme  is  a  demand  driven  scheme  wherein,  the  proposals  to  establish Common  Facility  Centers  (CFCs)  and  Infrastructure  Development  (ID)  Projects  are  received  as  per common needs of existing clusters from States/UTs Governments. Further, the requirement of GoI grants for  ongoing  projects  is  received  from  the  State  Governments  on  the  basis  of  physical  progress  of  the approved  projects  under  the  scheme.  In  addition,  COVID  pandemic  has  also  adversely  impacted  the physical progress of the ongoing projects and utilisation of allotted funds during the period.

Ministry has simplified the scheme guidelines and mandated online submission of proposals on MSE-CDP  Portal.  The  stages  for  final  approval  of  the  proposal  by  the  National  Project  Appraisal Committee, has also been reduced to expedite the process of approval of project proposals. Further, the field  offices  of  the  Ministry  located  in  the  states  also  actively  coordinate  with  respective  State Governments for formulation and implementation of projects.

(d) & (e): State/UTs Governments identify the new clusters in the respective States/UTs.

(h): As per the evaluation study of the scheme conducted by National Productivity Council in 2021, the reported increase in employment is up to 15%.

*******

## Annexure

Annexure referred to in reply of part (a) of Lok Sabha Unstarred Question No. 2808 for answer on 12.12.2024.

## List of projects under MSE-CDP approved to support existing clusters during last 3 years (i.e. FY 2021-22 to 2023-24)

| States/UTs       | Projects Approved   | Projects Approved   | Projects Approved   |
|------------------|---------------------|---------------------|---------------------|
| States/UTs       | CFC                 | ID                  | TOTAL               |
| Andhra Pradesh   | 03                  | 18                  | 21                  |
| Assam            | 01                  | -                   | 01                  |
| Bihar            | -                   | 04                  | 04                  |
| Gujrat           | 05                  | -                   | 05                  |
| Haryana          | 02                  | -                   | 02                  |
| Himachal Pradesh | -                   | 03                  | 03                  |
| Karnataka        | 01                  | -                   | 01                  |
| Kerala           | 01                  | 04                  | 05                  |
| Madhya Pradesh   | -                   | 01                  | 01                  |
| Maharashtra      | 24                  | -                   | 24                  |
| Nagaland         | 03                  | -                   | 03                  |
| Odisha           | 02                  | 02                  | 04                  |
| Punjab           | 01                  | -                   | 01                  |
| Rajasthan        | 01                  | 01                  | 02                  |
| Tamilnadu        | 07                  | 08                  | 15                  |
| Telangana        | 01                  | 13                  | 14                  |
| Uttarakhand      | 02                  | -                   | 02                  |
| Uttar Pradesh    | 02                  | 10                  | 12                  |