Common Facility Centre (CFC)

Purpose

The Common Facility Centre (CFC) is being established to enhance the competitiveness and productivity of micro and small enterprises (MSMEs) within the cluster. It aims to improve product quality, efficiency, and resource utilization, while promoting import substitution and fostering sustainable industrial growth.

Target Audience

Primarily MSMEs operating in specific manufacturing sectors or regional clusters.

Services Offered

1. Training & Skill Development
Providing hands-on training programs to improve technical skills and entrepreneurial capacity.

2. Technology Upgradation
Offering access to modern machinery, advanced tools, and upgraded production technologies.

3. Quality Control & Testing
Ensuring product consistency and compliance through shared testing and quality assurance facilities.

4. Marketing Support
Assisting businesses in branding, promotion, and expanding market linkages.

5. Product Development
Supporting innovation through design improvement, material research, and prototype development.

6. Funding & Government Support
CFCs receive assistance under schemes like the MSE-CDP (Micro & Small Enterprises Cluster Development Programme) to provide financial and infrastructural backing.

Challenges Faced by Individual Units

MSMEs often face challenges related to technology, infrastructure, quality control, marketing, and skilled manpower.
CFCs address these issues by providing shared facilities, expert guidance, and cost-effective solutions, helping small enterprises become more competitive and sustainable.

Challenges Addressed by a CFC

• Technology & Infrastructure:
  Access to modern equipment, improved utilities, and production facilities.

• Quality Control & Testing:
  Facilities for quality checks, product certification, and compliance standards.

• Marketing & Sales:
  Joint marketing, branding support, and trade linkages.

• Skilled Manpower:
  Training programs and skill development initiatives to build a qualified workforce.

• Cost Reduction:
  Shared resources lower production costs and increase profitability.

• Environmental Compliance:
  Shared effluent treatment plants and green infrastructure for eco-friendly operations.

• Access to Finance:
  The formation of SPVs (Special Purpose Vehicles) improves financial credibility and access to loans.

• Research & Development:
  Shared R&D centers encourage innovation and product improvement.

• Raw Material Procurement:
  Bulk purchasing helps reduce material costs and ensure consistent supply.

Benefits of CFC

• Cost Reduction: Shared facilities reduce individual investment costs.

• Improved Competitiveness: Better technology and quality enhance market performance.

• Cluster Development: Encourages collaboration and shared growth within industries.

• Employment Generation: Creates new opportunities for local youth and artisans.

• Preservation of Crafts: Protects traditional skills through modern adaptation.

How CFCs Operate

• Demand-Driven: Developed based on the needs identified by local industry clusters.

• Financial Assistance: Supported through government grants and subsidies.

• Implementation: Managed by an SPV (Special Purpose Vehicle) or cluster-specific agency for smooth execution.

CFC Activities Include

1. Common Production & Processing Centers
2. Common Recycling Plant
3. Testing, Packaging & Quality
4. Upgradation Facilities
5. Training Centers
6. R&D and Design Centers
7. Effluent Treatment Plant
8. Common Logistics and Raw Material Bank
9. Plug & Play Facilities
10. Export Promotion and Packaging Units