Resentment among entrepreneurs regarding new guidelines for MSE-CDP

Micro and Small Enterprises Cluster Development Programme implemented for the year 2022-26

VAIBHAV PARWAT

Aurangabad, June 2:

The Central government has approved new guidelines of Micro and Small Enterprises Cluster Development Programme (MSE-CDP) for implementation during the year 2022-26. The scheme aims at enhancing the competitiveness and productivity of micro and small enterprises by undertaking certain interventions. The interventions include setting up of Common Facility Centres (CFC) and infrastructure development. However, the move has not gone down well with the entrepreneurs who have alleged that this policy is not in favour of the MSMEs.

According to the guidelines, the Central government's grant for development of CFCs will be restricted to 70 per cent of the cost of the project from Rs 5 crore to 10 crore and 60 per cent of the cost of project from Rs 10 crore to Rs 30 crore. In case of hill states and aspirational districts, the government's grant will be 80 per cent of the cost of the project from Rs 5 crore to Rs 10 crore and 70 per cent of cost of the project from Rs 10 crore to Rs 30 crore.

Commenting on the issue, president of the Marathwada Association of Small Scale Industries and Agriculture (MASSIA) Kiran Jagtap said, “Small entrepreneurs are disappointed with the new guidelines. Entrepreneurs who are already financially affected by corona will now have to pay an additional ten per cent for such projects. This will put financial burden on the entrepreneurs and hamper the setting up of the CFCs.”

50 per cent grants for modernization

For infrastructure development, it said the Central government grant will be restricted to 60 per cent of the cost of project from Rs 5 crore to Rs 15 crore for setting up of new industrial estate, multi story factory complex, while the grant will be 50 per cent of the cost of project from Rs 5 crore to Rs 10 crore for upgradation of existing industrial estate, multi story factory complex. This will be helpful for the MSMEs looking for upgradation, said Pramod Thorat, small scale entrepreneur.