The government has approved new guidelines of Micro and Small Enterprises Cluster Development Programme (MSE-CDP) for implementation during the 15th Finance Commission cycle - 2021-26, the MSME ministry said on Friday.

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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 and infrastructure development.

According to the guidelines, the central government's grant for development of Common Facility Centres (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 north-east and hill states, island territories 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, the ministry said in a statement.

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/flatted 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/ flatted factory complex.