STATE MINI CLUSTER DEVELOPMENT SCHEME

State Mini Cluster Development Scheme – Haryana Government Support for MSMEs

Introduction

In an era where small-scale industries play a pivotal role in driving economic growth and job creation, the Government of Haryana has taken a proactive step to empower Micro and Small Enterprises (MSEs) through the State Mini Cluster Development Scheme (SMCDS). Introduced on June 8, 2021, this initiative is designed to encourage collective growth by promoting the formation of clusters and the development of Common Facility Centers (CFCs) that enable shared access to technology, skills, market linkages, and infrastructure.

At Advice Consultant, we offer end-to-end support to MSEs aiming to benefit from this transformative scheme. Whether you're just exploring the cluster concept or ready to initiate a project proposal, we guide you at every step—from conceptualization to documentation, departmental liaison, and grant disbursement.

What is a Mini Cluster?

A cluster is a group of enterprises located in a specific geographic area that produce similar products or services. These enterprises benefit from mutual support and shared resources, which in turn:

Reduce production costs
Promote skill development
Improve product quality
Increase bargaining power in the market

Mini clusters offer an innovative, collaborative model where Common Facility Centers (CFCs) are created to support multiple units within the cluster. These CFCs may include testing labs, machinery banks, training hubs, packaging units, and quality certification centers—designed to serve all members of the cluster.

Objective of the Scheme

The State Mini Cluster Development Scheme was launched with the aim to:

Strengthen the competitiveness of micro and small enterprises
Promote technology adoption and modernization
Improve access to shared infrastructure
Enhance market outreach and branding
Foster entrepreneurial synergy among neighboring units
Facilitate employment generation through decentralized industrial growth

The scheme aligns with the Haryana Enterprises & Employment Policy, 2020, and contributes to the State’s broader vision of boosting rural industrialization and inclusive development.

Key Features of the Scheme

1. Government Grant-in-Aid

The State Government provides financial assistance up to 90% of the cost of the CFC project, subject to the following conditions:

2. Flexible Cluster Formation

Clusters can be based on:

A single product line (e.g., garments, auto components, handicrafts)
A service sector (e.g., IT services, repair & maintenance hubs)
A geographical or district-based group with similar business activities

This flexibility allows diverse sectors to leverage the scheme as per local strengths and demand.

3. Focus on Common Facility Centers

The scheme supports CFCs that cater to:

Machinery or equipment banks
Tool rooms and technical support units
R&D and testing laboratories
Training centers for skilling and reskilling
Warehousing and packaging centers
Marketing support and e-commerce enablement

Eligibility Criteria

The scheme is targeted at registered Micro and Small Enterprises operating within the state of Haryana.

Eligible Units Must:

Be located within a defined and approved cluster area
Be registered under the Udyam Portal and have a valid Haryana Udhyam Memorandum (HUM)
Submit a joint proposal through a Special Purpose Vehicle (SPV)—a legal entity such as a society, trust, cooperative, or company
Ensure that the SPV has adequate representation from the participating units

Clusters supported under this scheme must not have previously availed similar financial support from the Central or State Government.

Application Process

Applying for the State Mini Cluster Development Scheme involves several steps and detailed documentation. At Advice Consultant, we manage the full lifecycle of your application, including:

Feasibility Study & DPR Preparation
We conduct site visits and prepare a Detailed Project Report (DPR) showcasing the business case, infrastructure plan, member contributions, and expected outcomes.
Formation of SPV
We help set up and legally register the Special Purpose Vehicle (SPV) that will own and operate the Common Facility Center.
Submission to Nodal Department
The application is submitted to the Department of Industries & Commerce, Haryana, along with supporting documents.
Follow-up & Clarification
We coordinate with government departments for approvals, site inspections, and clarifications.
Sanction & Fund Disbursement
Upon project sanction, we support you in receiving the grant-in-aid in designated tranches.

Required Documents

To initiate the application process, the following documents are essential:

Udyam Registration Certificate for each participating unit
HUM (Haryana Udhyam Memorandum)
SPV registration documents (MoA, AoA, Trust Deed, etc.)
DPR (Detailed Project Report)
CA-certified estimates for project costs
Layout plan of proposed CFC
Power of Attorney and Board Resolutions
Commitment letter from each member unit

We ensure that all paperwork is accurate, complete, and compliant with government guidelines.

Benefits to Entrepreneurs

Participating in the Mini Cluster Development Scheme brings several strategic and financial benefits to small business owners:

✅ Shared Costs & Resources

Pooling resources drastically reduces the burden of individual capital investment.

✅ Quality Enhancement

Access to modern tools, testing labs, and R&D facilities results in improved product quality.

✅ Market Reach

With marketing and packaging support through CFCs, units can expand to national and international markets.

✅ Innovation & Collaboration

Clusters foster a spirit of collaboration, knowledge exchange, and innovation.

✅ Government Recognition

Participation adds credibility and makes it easier to access other state and central incentives.

Why Choose Advice Consultant?

At Advice Consultant, we’ve helped numerous clusters across Haryana plan, structure, and successfully apply for State and Central government subsidies. Our team of experts includes legal professionals, industrial consultants, and government liaison officers who ensure: