MSME Competitive LEAN Scheme Launched Benefits & Eligibility @ 2024

MSME Competitive LEAN Scheme Launched Benefits & Eligibility
MSME Competitive LEAN Scheme Launched Benefits & Eligibility

MSME Competitive LEAN Scheme

Narayan Rane, the union minister for small and medium businesses, introduced the MSME Competitive (LEAN) program on Friday. The government modified the MSME Competitive (LEAN) Scheme to make it more advantageous for businesses and stakeholders. The Centre’s share will be 90% of the implementation cost for handholding and consulting fees under the revised system, up from 80% under the old one. The obligation to place a special-purpose vehicle in each cluster has also been eliminated by the government.

Read below to check the detailed information related to MSME Competitive (LEAN) Scheme like Highlights, Objectives, Features, Benefits, Assistance, Application Process, and much more. Under the Plan, MSMEs will receive support to lower their production costs through effective staff management, better space use, scientific inventory management, enhanced process flows, shorter engineering lead times, and other measures.

LMCS also improves product quality and reduces prices, two factors necessary for competing in both domestic and foreign markets. To stay competitive, larger businesses in India have been using LMCS, but MSMEs have typically avoided such programs because they are largely unaware of the advantages. In addition, skilled and efficient Lean Manufacturing Counsellors or Consultants are hard to find and expensive to hire, hence the majority of MSMEs cannot afford LMCS. The scheme has been accepted as a pilot project for the use of lean techniques in 100 mini clusters.

MSME Competitive LEAN Scheme Overview


MSME Competitive (LEAN) Scheme  

Introduced by

Narayan Rane, the union minister for small and medium businesses

Official website


The MSME Competitive (LEAN) plan was changed by the government to be more beneficial to enterprises and stakeholders.

Objective Of MSME Competitive LEAN Scheme

Increasing manufacturing competitiveness in the MSME Sector is the primary goal of the Lean Manufacturing Competitiveness Scheme (LMCS). To find and get rid of waste and streamline a system, lean manufacturing uses lean techniques (such as Total Productive Maintenance (TPM), 5S, Visual control, Standard Operation Procedures, Just in Time, Kanban System, Cellular Layout, Poka Yoke, etc.). Making the entire process run smoothly is the main goal, not just a few specific processes. The effort also places a strong emphasis on worker empowerment.

Benefits Of MSME Competitive LEAN Scheme

  • 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-Approach

The strategy entails hiring Lean Manufacturing Consultants (LMCs) to evaluate the current manufacturing system of the Mini Cluster member units and to specify specific step-by-step timetables and processes for putting lean approaches into practice. In each cluster, a Special Purpose Vehicle (SPV) will be created. It is anticipated that MSMEs will continue the Scheme on their dime starting in the second year after learning about the advantages and cost reductions that result from LM approaches.

There is a three-tier implementation structure in place, with a group of about ten MSMEs (SPV) at the lowest local tier and a Lean Manufacturing Screening and Steering Committee (SSC) under DC(MSME) at the top tier. The National Monitoring and Implementing Unit (NMIU), which belongs to the intermediate tier, is in charge of easing the Scheme’s implementation and oversight. The National Productivity Council (NPC) is envisioned to serve as the NMIU for the Pilot phase of 100 Micro Clusters.

MSME Competitive LEAN Scheme Assistance

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%.

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 (Mini Clusters).

important Links


  • What is LEAN scheme for MSME?

The scheme aims to improve the productivity and profitability of MSMEs by implementing lean manufacturing tools and techniques. The scheme also provides for capacity building and training of MSMEs in lean manufacturing techniques through a network of lean manufacturing groups and experts.

  • Who launched the LEAN scheme?

LEAN has potential to become a national movement and aims to provide a roadmap to global competitiveness for the MSMEs of the country: Shri Rane. Union Minister for MSME Shri Narayan Rane launched the MSME Competitive (LEAN) Scheme today.

  • What is the new scheme of MSME?

The Credit Linked Capital Subsidy Scheme (CLCSS) renders a subsidy for technology upgradation to the MSMEs. This scheme provides 15% subsidy for additional investment up to Rs. 1 crore for technology upgradation by MSMEs. Technology upgradation means induction of state-of-the-art or near state-of-the-art technology.

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