Government launches MSME Competitive (LEAN) scheme

The government has launched the revamped MSME Competitive (LEAN) scheme to encourage and assist MSMEs adopt LEAN manufacturing practices.

Motivating and incentivising the MSMEs, the government has decided to contribute 90% of the implementation cost against 80% decided earlier, and an additional 5% if they are part of SFURTI (Scheme of Fund for Regeneration of Traditional Industries) clusters owned by women, scheduled castes, or scheduled tribes, and located in the northeastern part of the country.

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

It is being introduced in two parts, the first will cover the manufacturing sector, and the second will cover the services sector.

Launching the scheme, Union Minister Narayan Rane said that it has the potential to become a national movement, and that it aims to provide a roadmap for global competitiveness for the MSMEs in India.

The scheme aims to introduce LEAN manufacturing tools like 5S, Kaizen, KANBAN, Visual workplace, Poka Yoka, and others, through which MSMEs can reduce wastages, increase productivity, improve quality, work safely, expand their markets, and become competitive and profitable.

"Today, the ministry is launching MSME Competitive (Lean) scheme with several improvements to make it simple and beneficial for MSMEs and other stakeholders. The government's contribution to trained and qualified new consultants has been enhanced to 90% apart from other benefits," said BB Swain, Secretary, MSME Ministry.