1. Introduction: What is the Cluster Plug & Play Scheme?
The Cluster Plug & Play Scheme is an infrastructure-focused initiative under the Haryana MSME Policy, 2019, launched to boost competitiveness among micro, small, and medium enterprises (MSMEs) by providing ready-to-use industrial infrastructure within clusters. This transformative approach cuts down setup time and costs for entrepreneurs, enabling them to focus on production and innovation faster.
At its core, the scheme facilitates the development of common facilities—such as sewage treatment plants, effluent treatment systems, captive power plants, and flatted factory infrastructure—essential for MSMEs to operate efficiently within a cluster.
State support covers up to 50% of the total project cost, capped at ₹5 crore per project.
2. Strategic Objectives & Policy Context
The Haryana MSME Policy, 2019 aims to:
• Strengthen industrial infrastructure.
• Encourage entrepreneurship, technological modernization, and MSME competitiveness.
• Enhance access to credit, markets, and revival support for distressed units.
Within this broader framework, the Plug & Play scheme is instrumental in deploying cluster-centric infrastructure solutions that:
• Reduce entry barriers for MSMEs.
• Promote geographically balanced industrial growth.
• Foster collective resource utilization and economies of scale across enterprises.
3. Eligibility & Financial Framework
Eligible Implementing Agencies (IAs):
• Private sector companies, LLPs, proprietorships, societies, trusts.
• Special Purpose Vehicles (SPVs) formed by MSMEs are especially encouraged.
Financial Contributions Required:
a) Equity: Minimum 20% of total project cost.
b) Term loan: At least 20% from bank/financial institutions.
c) Land: Must secure (purchase or lease) for a minimum of 20 years.
INFRASTRUCTURE SETUP:
a) Development must be on a minimum of 5 acres.
b) Creation of at least 10 leasable or saleable units should be planned.
c) At least 10% of these units must be reserved for startups, women entrepreneurs, or SC/ST-owned enterprises.
Application Restrictions:
a) An entity that has availed of assistance must wait one year after operationalizing the project before reapplying.
b) Any entity can benefit no more than twice under this scheme.
4. Grants, Disbursement & Penalties
Grant Disbursement:
First installment: Released after verification that 50% of project cost (via equity and loan) has been expended.
Second installment: Disbursed upon full utilization of first installment and project completion.
Appeals Process:
Applicants may appeal adverse decisions to the Administrative Secretary, Industries & Commerce, Haryana.
Penalties for Non‑Compliance:
Provision of false information leads to grant repayment with 12% compound interest, legal action, and possible disbarment from future assistance.
5. Policy Lifespan & Implementation Timeline
Scheme notified on: December 24, 2020.
Extension granted until: June 30, 2025—or until a successor scheme is notified under the forthcoming MSME Policy.
Team Lease
As of mid‑2025, the scheme has enabled:
a) 33 industrial park projects under plug-and-play infrastructure model, with ₹64.54 crore in grant support.
b) In a broader cluster development initiative, 33 plug-and-play projects totalling ₹359 crore, supported by ₹75.98 crore in grants.
This marks a strong commitment toward enhancing MSME ecosystem through infrastructure-led support in Haryana.
6. Complementary Schemes & Integrated Benefits
The Plug & Play Scheme dovetails with multiple central and state-level initiatives:
Mini Cluster Development Scheme (MSE‑CDP): Jointly funded (GoI 70%, State 10%, SPV 20%) for common facility center projects up to ₹20 crore, with additional state subsidy for larger projects.
Enterprise & Infrastructure Incentives (HEEP, 2020): Offers diverse benefits like SGST reimbursement, interest subsidy, electricity duty exemption, testing equipment support, patent, quality certifications, and more for MSMEs.
Cluster Development Scheme (non Plug & Play): ₹170‑crore initiative includes 11 MSME clusters and subsidies, enhancing shared infrastructure like testing and training centers.
These overlapping frameworks offer layered incentives, where businesses within plug-and-play clusters may benefit from multiple schemes.
7. Strategic & Economic Impact
Industrial Expansion & Decentralization
The flatted factory model enables quicker project implementation, benefiting MSMEs in Tier 2 and Tier 3 towns with lesser infrastructure burden.
8. Implementation Process & Consultancy Support
How Implementation Agencies Can Apply:
a) Conduct feasibility study and prepare a detailed project report (DPR).
b) Secure land and financing (equity + term loan).
c) Submit online application via the designated Haryana MSME portal with supporting documents.
d) Track approvals and ensure phased fund utilization with transparency.
e) Complete infrastructure, utilize second disbursement, and operationalize cluster.
HOW ADVICE CONSULTANT CAN ASSIST YOU:
Process Guidance: Clarify eligibility, funding requirement, structuring, and land planning.
Application Filing & Liaison: End-to-end handling of portal submissions and interactions with authorities.
Disbursement Tracking & Compliance: Ensure correct financial accounting, milestone reporting, and regulatory compliance.
Post-Implementation Support: Facilitate operational utilization, and explore other welfare schemes (interest subsidies, SGST reimbursements, marketing support).
