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Cluster Plug & Play Scheme

Name of the scheme Cluster Plug & Play Scheme
Ministry/Department Directorate of Micro, Small and Medium Enterprises (MSME), Haryana
Description
  • The State Government has formulated the “Cluster Plug and Play Scheme” for providing necessary infrastructure support for development of MSMEs in the state.
  • The scheme aims at development of modern infrastructure and providing affordable operating facility with necessary amenities to encourage entrepreneurs to set up units based on cluster approach. The scheme will play an important role in facilitating geographical dispersal of industry and provide modern infrastructure for the MSMEs in Haryana.
  • The major objectives of the scheme are as under:
  • To create affordable operating infrastructure for MSME units to enhance their competitiveness.
  • To make available capital-intensive common facilities like Sewage Treatment Plan, Effluent Treatment Plant (ETP), Captive Power Plant etc. to MSME units.
  • To provide readily available common infrastructure to promote entrepreneurs for setting up of new MSMEs in the state.
Nature of assistance
  • The State Government grant will be restricted to 50% of the eligible cost of project (up to a maximum of INR 5 Crore) for developing flatted factories in minimum 5 acres of land.
  • A variation of 10% max. is admissible in component-wise cost subject to keeping overall project cost unchanged.
  • Adaptive reuse of the unutilized / partially utilized buildings and assets under Private Sector would be encouraged under the scheme.

Note: The Project should be completed within two years from the date of approval, unless extended with the approval of Steering Committee. The extension would be granted for a period of six months by Steering Committee based on the justification provided by IA. Second / subsequent Project in a district will be considered only if earlier approved Project is completed in all respects. Funds will be released on reimbursement basis or on matching share basis.

Who can apply? Implementing Agency (IA):

Eligibility Criteria:

  • Implementation Agency (IA) can be Private Sector Company / Limited Liability Partnership / Proprietorship/ Societies/ Trust who will be eligible for financial assistance under the scheme.
  • IA needs to bring in at least 20% of the total project cost as equity/ contribution.
  • IA needs to bring in term loan from the Bank/Financial Institution for an amount not less than 20% of the project cost.
  • The land for the project shall be arranged by the IA either by purchase or on lease of at least 20 years.
  • Preference will be given to the Special Purpose Vehicles (SPVs) of Micro and Small Enterprises (MSEs).
  • A minimum of 10 no. of total leasable/ saleable plots/ operating facilities should be created as part of the plug and play facility.
  • Minimum 10% of the total leasable/ saleable plots should be reserved for Start-ups and Women & SC/ST owned enterprises.
  • Any entity / applicant which has availed financial assistance for a project under this scheme, will not be eligible to apply for another project under same scheme until one year after operationalization of earlier project.
  • The same applicant / entity shall not be entitled for more than two times under this scheme. The promoter(s) of the facility will be eligible for availing financial assistance under other schemes of State / Central Governments for setting up of the unit(s) in these facilities(s).
  • IA should not be categorized as Wilful Defaulter as per RBI guidelines.

Responsibilities of IA

  • To formulate the Detailed Project Report (DPR) and execute the project in a transparent, efficient and timely manner.
  • To procure/purchase land and ensure external infrastructure linkages for the project.
  • To obtain statutory approvals/clearances including environmental clearances, which are prerequisite for commencement and operation of the Project.
  • To achieve financial closure and ensure timely completion of the project in specified timelines.
  • To own and maintain the enabling infrastructure and common facilities.
  • To receive grant-in-aid under the Scheme, and to ensure its utilization in a transparent and judicious manner.
  • To maintain proper accounts of the project implementation and the maintenance of infrastructure and common facilities after commissioning of the project.
  • Provide quarterly progress report with pictures / photographs of site.
  • Every IA will publish the user charges/ hiring rates for common facilities and lease rental rates / sale price for plots/ factory premises on their websites and also on a board at the gate of the facility for wider information of the prospective investors. Rate of plots in developed area will also be made available to State Government concerned for uploading on their websites.
  • IA may sell / lease plots/ factory premises in developed facility to only MSME units.
How to apply?
  • DPR shall be appraised through any scheduled bank, at the cost of IA.
  • The State Level Steering Committee (SLSC) meeting shall be convened once in two months.
  • An application with a Detailed Project Report (DPR) shall be put up to the office of Director General, Micro, Small and Medium Enterprises (MSME) for acceptance. The assistance of INR 10.00 Lakh shall be provided for preparation of DPR through any consultant who is competent to prepare such document and having sufficient experience of conducting similar studies in the past.
  • On acceptance of the DPR, IA shall implement the project with the support of the competent consultant. Project Management Consulting charges will be 2% of the total project cost with release of 50% of the fee with release of each grant. Consultant will provide following services:
  • Handholding beneficiaries to apply for scheme by way of preparation of detailed DPRs, project proposals including facilitating bank appraisals etc.
  • Presentation of proposals to State Level Steering Committee.
  • Provide inputs for preparation of the agenda notes and minutes of review meetings.
  • Assistance in drafting grant approval letters.
  • Post approval coordination and ensuring timely execution of project.
  • Monitor and report the progress of the projects on the basis of defined milestones.
  • Provision of all necessary documents as required by department from time to time.
  • Sensitising potential investors about detailed guidelines of the scheme.
  • Director General, Micro, Small and Medium Enterprise (MSME) shall be competent to sanction cost of INR 10.00 lakh as DPR charges and charges for PMC to be paid to the Consultant. The cost of DPR and PMC shall be adjusted in the total eligible grant under the scheme.
  • The project implementation shall be done by the Implementing Agency under the supervision of the concerned Joint Director/Deputy Director, DIC/MDO.
  • IA will be required to take all the required approvals i.e. Change of Land Use (CLU), Consent to Establish (CTE) etc. necessary for the implementation of the project.
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