FMC as  Nodal Agency extends all support required to TA for implementation of the scheme as may be required such as obtaining Government Approvals, Environment Clearances etc. for setting up of Clusters; The Nodal agency is also involved in Preparation of strategy and implementation plan for sub-sector thematic interventions;  Appraisal of DPRs received from TAs establishing the project viability, output, outcomes, impact and sustainability;  Apart from this Nodal Agency  also does Program fund management and ensures timely disbursement of funds to the IAs to ensure time bound completion of projects.

With the dearth of efficient and experienced Nodal Agencies, Ministry of MSME, Government of India appointed FMC as one of the NA, in August 2019. Subsequently FMC empanelled 7 Technical Agencies. In the FY 2019-20, 20 proposals were approved and expected to benefit 13000 artisans in sectors like Aqua Culture, Agriculture, Handicrafts, Handlooms, Honey, Bamboo, Jewelry, Rugs and floor coverings, floriculture.