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Bank Promotion Exam Guide

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Module: General Practice

Q53: Which of the following statements regarding the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) is INCORRECT?

A
The scheme supports the setting up of Common Facility Centres (CFCs) like testing labs, design centres, and effluent treatment plants.
B
The maximum project cost considered for a Common Facility Centre (CFC) is capped at Rupees 5 crore.
C
The scheme also supports "Infrastructure Development" (ID) projects such as developing new industrial estates or upgrading existing ones.
D
The Central Government grant is generally restricted to 60% to 80% of the project cost, depending on the location and category.
✅ Correct Answer: B
The Incorrect Statement is B. Under the revised MSE-CDP guidelines (effective 2022-26), the maximum project cost admissible for a Common Facility Centre (CFC) is Rupees 30 crore.
The previous limit was much lower, but it was enhanced to support world-class infrastructure.
The Central Government grant is usually 70% of the project cost (up to 80% for special category areas/aspirational districts). The scheme focuses on "Collective Efficiency" by helping small units share high-tech machinery they could not afford individually.