Common Facility Centers

Common Facility Centers under Cluster Development Programme Scheme of MSME.

Common Facility Centers under Cluster Development Programme Scheme of MSME- Cluster is a group of enterprises located in an identifiable Micro and Small Enterprise’s area, which uses similar methods of production, technology and marketing, also shares common challenges and opportunities in their business.

The said scheme is introduced by the Govt of India in order to support the growth of small business, enhancing their productivity and addressing their common issues such as improvement of technology, skills and quality, market access, access to capital etc.

The scheme provide financial assistance to the entities providing specific development for admissible components in the MSE areas.

One of the admissible component is “Common Facility Centers” (CFCs).

Common Facility Centers (CFCs):

CFCs means creating common facilities which would help in development of a cluster. To invest in CFCs, one must form a Special Purpose Vehicle of Section 8 company as per Companies Act, 2013.

Common Facility Centers include following activities:

1. Common production/processing centers,
2. Design centers,
3. Testing facilities,
4. Training centers,
5. R&D centers,
6. Effluent treatment plant,
7. Marketing display/selling centers,
8. Common logistics centers,
9. Common raw material bank/sales depot,
10. Plug & Play facility,
11. Any facility that support development of new product designs, improved system for better hygiene and working conditions,
12. Activities that support system for skill upgradation of the cluster, etc.

Financial Assistance/Subsidy/Benefits Available:

Maximum Ceiling Limit of Project Cost: Rs. 20.00 Crores

Permissible Assistance:

1. For General Category:

70% of the Cost of Project Subject to Maximum of Rs. 14.00 Crores

2. For CFCs in North East & Hill States, Island territories, Aspirational Districts/LWE affected Districts:

90% of the Cost of Project Subject to Maximum of Rs. 18.00 Crores

3. For Clusters with more than 50% (a) micro/ village, (b) women owned, (c) SC/ST units:

90% of the Cost of Project Subject to Maximum of Rs. 18.00 Crores

Project Cost includes:

1. Cost of Land (subject to maximum of 25% of Project Cost)
2. Building, pre-operative expenses, preliminary expenses
3. Machinery & equipment, miscellaneous fixed assets, support infrastructure such as water supply, electricity and margin money for working capital.

Note: If you are planning to invest your money in such kind of development projects, then you should invest in clusters as notified by the Government to avail maximum benefit of it.

The scheme is valid till March 31, 2026.

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