MSME Competitive LEAN Scheme 2024:Benefits,Eligibility

MSME Competitive LEAN Scheme:- Union Minister for Small and Medium Enterprises Narayan Rane on Friday launched the Micro, Small and Medium Enterprises Competitiveness (LEAN) initiative. The government has revised the Micro, Small and Medium Enterprises Competitiveness (LEAN) policy in the interest of businesses and stakeholders. Under the revised system, the Center’s share is 90 per cent of administrative and application fees, up from 80 per cent under the old system. The government has also removed its obligation to place self-driving cars in any category. Please read below to learn more about the Leadership for Small and Medium Enterprises Program (LEAN) such as overview, objectives, features, benefits, support, application process and more.

About MSME Competitive LEAN Scheme

According to the plan, small, medium and micro enterprises will reduce production costs through efficient manpower management, efficient space utilization, scientific resource management, improved management, shortened technology delivery time, etc. LMCS also improves product quality and reduces costs, two important factors to compete in domestic and foreign markets.

To stay competitive, large companies in India are using LMCS, but MSMEs often shy away from these schemes as they are unaware of their benefits. Additionally, it is difficult to find skilled and affordable infrastructure consultants, making LMCS unaffordable for many MSMEs. The program has been approved as a pilot project to apply lean methods in 100 groups.

MSME Competitive LEAN Scheme(Highlight)

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(Objective)

Improving the competitiveness of micro, small and medium-sized enterprises is the main goal of the Lean Manufacturing Competitiveness Program (LMCS). In order to discover and eliminate waste and improve the system, lean manufacturing adopts lean methods (such as Total Product Maintenance (TPM), 5S, smart control, standard operating procedures, just-in-time production, Kanban system, cell layout, Yoke Hole, etc.). Prioritize the work of the entire system, not just small tasks. This work increases worker efficiency.

MSME Competitive LEAN Scheme(Features&Benefits)

  • In addition to striving to improve quality, productivity and performance, the program also aims to change the way manufacturers think.
  • This program is an additional step in raising awareness among MSMEs about lean production methods, encouraging and rewarding them to do so, and encouraging them to become MSME professionals.
  • MSMEs are empowered to reduce waste, increase productivity, improve efficiency, manage effectively, expand markets and ultimately become more competitive and competitive.
  • To achieve lean levels such as Beginner, Intermediate and Advanced, MSMEs use Lean production techniques such as 5S, Kaizen, Kanban, Workstations and Poka Yoka under the guidance of trained and experienced 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 2024(Approach)

This process involves hiring a Lean Manufacturing Consultant (LMC) to review the production processes of Mini Cluster member units and specify the timing and steps of the work methods. For each group, a special purpose vehicle (SPV) is established. After understanding the benefits and cost savings brought by LM practices, MSMEs are expected to continue implementing the program at their own expense from the second year onwards.

There are three management systems, with the bottom layer consisting of ten micro, small and medium enterprises (SPVs) and the top layer being the Investment and Management Committee (SSC) under the DC (MSME). The National Monitoring and Implementation Unit (NMIU) is located in the central department and is responsible for the implementation and monitoring of the reduction programme. The National Productivity Commission (NPC) is expected to be the NMIU for the pilot phase of 100 micro-clusters.

MSME Competitive LEAN Scheme(Assistence)

For each Mini Cluster, the Indian government will contribute money equal to up to 80% of the consultant expenses. The recipients’ MSME units are responsible for generating the remaining 20%.

MSME Competitive LEAN Scheme Application Process

The National Productivity Council (NPC), Utpadakta Bhawan, Lodhi Road, New Delhi-110003 accepts applications in the prescribed format from 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.

MSME Competitive LEAN Scheme(Contact Detail)

S. No. Name Designation Phone Number
1 Mr. Subrata Pal Director, NPC 9953850301, 011-24607316
2 Mr. Jaipal Singh Deputy Director, Office of the DC(MSME), 011-23061461



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