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Bank Promotion Exam Guide

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Module: General Practice

Q62: Regarding the funding pattern under the MSE-CDP (New Guidelines) effective for the current cycle (2025-26), identify the INCORRECT combination of Project Cost and maximum Government of India (GoI) Grant contribution.

(Note: Assume General Category States unless specified).
A
Common Facility Centre costing ₹8 Crore → 70% GoI Grant.
B
Common Facility Centre costing ₹20 Crore → 60% GoI Grant.
C
Infrastructure Development (New Estate) costing ₹12 Crore → 60% GoI Grant.
D
Common Facility Centre costing ₹40 Crore → 60% GoI Grant calculated on the full ₹40 Crore.
✅ Correct Answer: D
The Rule (MSE-CDP Guidelines):
Projects with a cost higher than the defined ceiling (which is ₹30 Crore for CFCs) can be considered, but the GoI Grant is capped.
The grant is calculated based on the maximum eligible project cost of ₹30 Crore.
It is not calculated on the excess amount.
Correct Funding Pattern (General States):





CFCs ₹5 Cr – ₹10 Cr: 70% Grant.




CFCs ₹10 Cr – ₹30 Cr: 60% Grant.




Infrastructure (New) ₹5 Cr – ₹15 Cr: 60% Grant.
Correction for Option D: For a ₹40 Crore project, the grant would be calculated only on ₹30 Crore (meaning 60% of 30 Cr = ₹18 Cr), not on the full ₹40 Crore.