The MSME Competitive (LEAN) initiative was launched on Friday by Narayan Rane, the union minister for small and medium-sized businesses. The MSME Competitive (LEAN) Program was modified by the government to benefit businesses and stakeholders. Under the updated scheme, the Center’s part of the implementation costs for mentoring and consulting fees will increase from 80% under the previous one to 90%. The government has also eliminated the requirement to include a special-purpose vehicle in every cluster. Read on to learn more about the MSME Competitive (LEAN) Program in detail, including its highlights, objectives, features, benefits, assistance, application process, and much more.
MSME Competitive (LEAN) Scheme Highlights
| Name | MSME Competitive (LEAN) Scheme |
| Introduced by | Narayan Rane, the union minister for small and medium businesses |
| Introduced on | 10-March-2023, Friday |
| Objective | The MSME Competitive (LEAN) plan was changed by the government to be more beneficial to enterprises and stakeholders. |
MSME Competitive (LEAN) Scheme 2023
By efficient staff management, better space utilisation, scientific inventory management, improved process flows, shortened engineering lead times, and other initiatives, MSMEs will receive help under the Plan to minimise their production costs. Moreover, LMCS enhances product quality and lowers costs, two elements required for competition in both domestic and international markets. Larger companies in India have been utilising LMCS to remain competitive, but MSMEs have usually avoided such programmes since they are mostly unaware of the benefits. Moreover, it is difficult to identify and expensive to hire competent and effective Lean Manufacturing Counselors or Consultants, hence the majority of MSMEs cannot afford LMCS. For the adoption of lean techniques in 100 mini clusters, the plan has been approved as a pilot project.
Features and Benefits of the MSME Competitive (LEAN) Scheme
Some of the key features and benefits of the MSME Competitive (LEAN) Scheme are as follows:
- Along with attempting to increase quality, productivity, and performance, the plan also aims to alter manufacturers’ perspectives.
- This program is an extended effort to raise MSMEs’ understanding of LEAN manufacturing techniques, motivate and reward them for doing so, and encourage them to become MSME champions.
- MSMEs have the potential to significantly decrease waste, boost productivity, enhance quality, work safely, grow their market reach, and ultimately become competitive and profitable.
- To achieve LEAN levels such as basic, intermediate, and advanced, MSMEs will adopt LEAN manufacturing technologies such as 5S, Kaizen, KANBAN, visual workplace, and Poka Yoka under the capable leadership of trained and competent LEAN consultants.
- The government would cover 90% of the implementation costs for coaching and consulting fees to support MSMEs.
- The MSMEs that are a member of SFURTI clusters, owned by women, SC, or ST, and situated in NER will receive an additional 5% contribution, the government noted.
- MSMEs that register through Industry Associations/Overall Equipment Manufacturing (OEM) groups after passing all levels will receive an extra contribution of 5%.
MSME Competitive (LEAN) Scheme Assistance
The Indian government will provide funds for each Mini Cluster that are up to 80% of the consultant expenses. The remaining 20% is generated by the recipients’ MSME units.
MSME Competitive (LEAN) Scheme Application Process
Applications in the format specified must be submitted to the National Productivity Council (NPC), Utpadakta Bhawan, Lodhi Road, New Delhi 110003, by interested industry associations or groups of approximately 10 MSME units that meet the requirements of the MSME-Development Act, 2006 and wish to form SPVs (Mini Clusters).
Contact Details
| S. No. | Name | Designation | Phone Number |
| Mr. Subrata Pal | Director, NPC | 9953850301, 011-24607316 | |
| Mr. Jaipal Singh | Deputy Director, Office of the DC(MSME), | 011-23061461 |
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