News Update

MSME Competitive (LEAN) scheme launched by Government

• ByStartupStory     |    March 13, 2023

To promote the adoption of LEAN manufacturing practices among MSMEs, the government has introduced an upgraded version of the MSME Competitive (LEAN) scheme, aimed at providing encouragement and assistance.

In order to provide greater motivation and incentives to MSMEs, the government has increased its contribution towards implementation costs from the previously decided 80% to 90%. Furthermore, an additional 5% contribution will be given to MSMEs that belong to SFURTI (Scheme of Fund for Regeneration of Traditional Industries) clusters owned by women, scheduled castes, or scheduled tribes, and located in the northeastern region of India.

Previously, the implementation period for the scheme was set at 18 months, but it has now been divided into three phases: basic (2 months), intermediate (6 months), and advanced (12 months).

The scheme will be launched in two stages, with the first stage covering the manufacturing sector and the second stage covering the services sector.

Union Minister Narayan Rane stated during the scheme’s launch that it has “the potential to become a nationwide movement, providing a roadmap for global competitiveness among Indian MSMEs”.

Through the scheme, MSMEs will have access to LEAN manufacturing tools such as 5S, Kaizen, KANBAN, Visual workplace, and Poka Yoka, among others. These tools will help MSMEs reduce waste, increase productivity, improve quality, ensure workplace safety, expand their markets, and ultimately enhance their competitiveness and profitability.

According to BB Swain, Secretary of the MSME Ministry, “the MSME Competitive (Lean) scheme is being launched today with several enhancements to make it more accessible and advantageous for MSMEs and other stakeholders. The government’s contribution towards trained and certified consultants has been increased to 90%, among other benefits”.

 

Follow Startup Story