Technology Upgradation and Quality Certification

1.3. MSME Champions Scheme

1.3.1. MSME Champions Scheme (Erstwhile CLCS-TUS)

Related Scheme MSME Champions Scheme (Erstwhile CLCS-TUS)
Objective Ministry of MSME has been implementing Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS) for promoting competitiveness amongst Micro, Small and Medium Enterprises (MSMEs) by the way of wastage reduction through Lean Manufacturing, support for Design improvement, building awareness on Intellectual Property Rights, Zero Defect Zero Effect (ZED) Scheme, digitally empowerment of MSME through Digital MSME and to promote & support untapped creativity of individual and to promote adoption of latest technologies in manufacturing as well as knowledge based innovation MSMEs through Incubation across India.

MSME Champions scheme has been formulated through Standing Finance Committee (SFC) by merging all 6 components of erstwhile Technology Upgradation Scheme (TUS) for a period of 5years i.e 2021-22 to 2025-26. It is a Holistic Approach to unify, synergize and converge various schemes and Interventions with a single purpose. The end objective is to pick up clusters and enterprises and modernize their processes, reduce wastages, sharpen business competitiveness and facilitate their National and Global reach and excellence. There are 3 components under the new MSME Champions scheme, the details of which are as below:
Who can apply? Any MSE unit
1. MSME-Sustainable (ZED)
2. MSME-Competitive (Lean)
3. MSME-Innovative(for Incubation, IPR, Design and Digital MSME)
The Digital MSME will be interlinked with all the other components of the MSME Champions Scheme.
Download Scheme Guidelines

1.3.2 MSME SUSTAINABLE (ZED) CERTIFICATION

Related Scheme MSME SUSTAINABLE (ZED) CERTIFICATION
Objective The ZED Certification envisages promotion of Zero Defect Zero Effect (ZED) practices amongst MSMEs so as to:

• Encourage and enable MSMEs for manufacturing of quality products using latest technology, tools & to constantly upgrade their processes for achievement of high quality and high productivity with the least effect on the environment

• Develop an Ecosystem for ZED Manufacturing in MSMEs, for enhancing competitiveness and enabling exports

• Promote adoption of ZED practices and recognising the efforts of successful MSMEs

• Encourage MSMEs to achieve higher ZED Certification levels through graded incentives

• Increase public awareness on demanding Zero Defect and Zero Effect products through the MSME Sustainable (ZED) Certification

• Identify areas to improve upon, thereby assisting the Government in policy decisions and investment prioritization
Nature of assistance Cost of Certification

a) a) Certification Level 1: BRONZE: Rs. 10,000/-

b) b) Certification Level 2: SILVER: Rs. 40,000/-

c) c) Certification Level 3: GOLD: Rs. 90,000/-
Subsidy on cost of ZED certification: • Joining Reward of Rs. 10,000/- (Bronze will become free if availed)

• 80-60-50% for Bronze, Silver & Gold ZED certified MSMEs
Additional subsidy: • 10% for Women/SC/ST owned MSMEs OR MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts.

• 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) of the Ministry.
Financial Assistance in Testing/Quality/Product Certification: • Up to 75% of the total cost of Testing/Certification, with the maximum ceiling of subsidy being Rs. 50,000/-
Handholding/Consultancy Support : Up-to Rs.2 lakh for handholding/Consultancy in order to achieve the next Certification Level.
Support in Technology Upgradation for Zero Effect Solutions: • Up-to Rs. 3 lakhs for moving towards zero effect solutions/pollution control measures/cleaner technology
MSME KAWACH (Knowledge Acquisition through WASH for an Accelerated COVID-19 Handling) Certification: After taking ZED Pledge, MSMEs can self certify their preparedness on Covid 19 risk.
Graded incentives: MSMEs can avail graded incentives as prescribed for the three ZED Certification Levels. Wherever possible, the incentives provided by States will be linked through API integration with the ZED portal to ensure interoperability.
Eligibility/ Applicability: All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Sustainable (ZED) Certification and avail related benefits/incentives.
How to Apply: Eligible MSMEs shall apply through online portal
Email: http://dcmsme.gov.in/
Phone no: 011-23708371
The guidelines of ZED scheme is available on http://www.dcmsme.gov.in
Contact: Office of Development Commissioner (MSME), Ministry of MSME, Nirman Bhawan, New Delhi. http://www.dcmsme.gov.in
Quality Council of India (QCI) is the Implementing Agency of the Scheme.
Download Scheme Guidelines

1.3.3. MSME-COMPETITIVE (LEAN)
(A component of MSME Champions scheme)

Related Scheme Lean Manufacturing Competitiveness for MSMEs
Objective MSME Competitive (Lean) Scheme is an extensive drive on the part of Ministry of Micro, Small and Medium Enterprises for enhancing the competitiveness of MSME Sectors through implementation of Lean Tools and Techniques. Lean Tools and Techniques are a tested and proven methodology for improving the competitiveness of MSME sector.
Nature of assistance Cost of Implementation: Basic-Free; Intermediate- Rs. 1,20,000/-; Advance- Rs. 2,40,000/-

Financial Assistance to group of MSME Units for adoption of Lean tools/techniques

Subsidy on cost of Implementation: 90% of Total Cost of Implementation
Eligibility/ Applicability: All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME-COMPETITIVE (LEAN) and avail related benefits/incentives.
How to apply? Eligible MSMEs shall apply through online portal.
Contact Office of Development Commissioner (MSME), Ministry of MSME, Nirman Bhawan, New Delhi. http://www.dcmsme.gov.in
Quality Council of India (QCI) & National Productivity Council (NPC) are Implementing Agencies.
Download Scheme Guidelines

1.3.4. MSME- Innovative (Incubation, IPR, Design and Digital MSME)
(A component of MSME Champions scheme)

Related Scheme MSME- Innovative (Incubation, IPR, Design and Digital MSME)
Objective MSME Innovative is a new concept for MSMEs with a combination of innovation in incubation, design intervention and by protecting IPR in a single mode approach to create awareness amongst MSMEs about India’s innovation and motivate them to become MSME Champions. This will act as a hub for innovation activities facilitating and guiding development of ideas into viable business proposition that can benefit society directly and can be marketed successfully.
Nature of assistance Incubation

• Financial Assistance to HI for developing and nurturing the ideas- shall be provided up to maximum of Rs. 15 lakh per idea to HI.

• Financial assistance for Plant and Machinery to HI up to Rs. 1.00 cr. (max) - shall be provided for procurement and installation of relevant plant and machines including hardware and software etc. in BI for R&D activities and common facilities for incubatees of BI.

Design

Design Project: 75% of the total project cost will be contributed by GoI up to a maximum of Rs. 40 lakh

Student Project: 75% of the total project cost will be contributed by GoI up to a maximum of Rs. 2.5 lakh

IPR

• A Grant of up to Rs. 1 crore would be provided to an IPFC in milestone-based (three or more) installments

Reimbursement for registration of Patent, Trademark, Geographical Indications (G.I.), Design: The maximum financial assistance to the eligible applicants under the IPR component is as follows:
Item

i. Foreign Patent

ii. Domestic Patent

iii. GI Registration

iv. Design Registration

v. Trademark
Maximum Financial Assistance

Rs. 5.00 lakh

Rs. 1.00 lakh

Rs. 2.00 lakh

Rs. 0.15 lakh

Rs. 0.10 lakh
Eligibility/ Applicability: Incubation: MSMEs, Individuals, Students who want to develop their innovative ideas can apply through registered HIs.

Design: The beneficiary unit(s) must typically be a registered micro, small or medium enterprises as per the definition in MSMED Act and should have a valid UAM or Udyam Registration.

IPR: For Manufacturing MSMEs with UAM/UDYAM Registration.
How to apply? The eligible applicants may apply at the MIS portal https://innovative.msme.gov.in
Contact Office of Development Commissioner (MSME), Ministry of MSME, Nirman Bhawan, New Delhi.
http://www.dcmsme.gov.in
Download Scheme Guidelines

1.3.5. Technology and Quality Upgradation Support to MSMEs

Related Scheme Technology and Quality Upgradation Support to MSMEs
Description The scheme advocates the use of energy efficient technologies (EETs) in manufacturing units so as to reduce the cost of production and adopt clean development mechanism.
Nature of assistance Capacity building of MSME clusters for energy efficiency/clean development and related technologies. Funding support of up to 75% for awareness programmes, subject to maximum of Rs 75,000 per programme;

Implementation of energy efficient technologies in MSME units 75% of actual expenditure for cluster level energy audit and preparation of model DPR;

Setting up of Carbon Credit Aggregation Centres. 50% of actual expenditure subject to maximum Rs 1.5 lakh per DPR towards preparation of subsequent detailed project reports for individual MSMEs on EET projects;

Encouraging MSMEs to acquire product certification / licenses from National / International bodies. 75% of the actual expenditure, subject to a maximum Rs 15;

25% of the project cost as subsidy by Government of India, balance amount to be funded through loan from SIDBI/banks/ financial Institutions. MSMEs are required to make the minimum contribution as required by the funding agency;

75% subsidy towards licensing of products to national/ international standards; ceiling Rs 1.5 lakh for obtaining product licensing/marking to National standards and Rs 2 lakhs for International standards.
Who can apply? Expert organisations like PCRA, BEE, TERI, IITs, NITs, etc.
State Govt. agencies like MITCON, GEDA, etc.
Cluster/industry based associations of MSMEs
NGOs and Technical Institutions.
How to apply? Obtain product certification from national standardisation bodies (like BIS and BEE) or international product certifications (CE, UL, ANSI, etc.)

Applicant applies in the specified format (given in annexure-IV of scheme guidelines) along with required documents for re-imbursement of fees, forwarding it, to MSME-DI concerned.

http://www.dcmsme.gov.in
Whom to contact JDC (TEQUP), O/o DC, MSME
Ph : 011-23062394
Email : bisariya[dot]sanjay[at]nic[dot]in
Download Scheme Guidelines

1.3.6. Entrepreneurial and Managerial Development of SMEs through Incubators

Related Scheme Entrepreneurial and Managerial Development of SMEs through Incubators
Description The objective of the scheme scheme is to provide early stage funding to nurture innovative business ideas (new indigenous technology, processes, products, procedures, etc.) that could be commercialised in a year. The scheme provides financial assistance for setting up business incubators.
Nature of assistance Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary from Rs 4 to 8 lakh for each incubatee/idea, subject to overall ceiling of Rs 62.5 lakh for each BI.

a) Upgradation of infrastructure Rs 2.50 lakh

b) Orientation/training Rs 1.28 lakh

c) Administrative expenses Rs 0.22 lakh

Total assistance per BI Rs 66.50 lakh
Who can apply? Any individual or MSME with innovative ideas ready for commercialisation can apply to the host institution (e.g., IITs, NITs, technical colleges, research institutes, etc.) in order to obtain fund support. See the list of host institutions at following web address:

http://www.dcmsme.gov.in

Any technical institution (as given in the EoI) that wants to become a host institution can apply to the office of the Development Commissioner-MSME or their nearest MSME-DI for funding support.
How to apply? Application can be made by the technical institution desirous of becoming the host institution, once a Request for Proposal (RFP)/ Expression of Interest (EoI) is released.

Any individual or MSME can apply directly to their nearest host institution. A list of host institutions is given on the website: http://www.dcmsme.gov.in

Website: http://www.dcmsme.gov.in
Whom to contact JDC, O/o DC, MSME
Ph: 011-23062394
Email : bisariya[dot]sanjay[at]nic[dot]in
Download Scheme Guidelines

1.2. A Scheme for promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

Related Scheme A Scheme for promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
Description The main objectives of the scheme are to:

(i) Create new jobs and reduce unemployment (ii) Promote entrepreneurship culture in India (iii) Boost Grassroots economic development at district level (iv) Facilitate innovative business solution for un-met social needs, and (v) Promote innovation to further strengthen the competitiveness of the MSME sector.
Nature of assistance NSIC/KVIC or Coir Board or any GoI or State Government agency to set up 80 Livelihood Business Incubators for the period 2014 to 2016. The objectives are: Promotion of Innovation, Entrepreneurship and Agro-Industry organisation of the M/o MSME, and one-time grant of 100% of cost of Plant & Machinery other than the land and infrastructure, or an amount up to Rs 100 lakhs, whichever is less is to be provided In case of incubation centres to be set up under PPP mode with NSIC, KVIC or Coir Board or any other Institution/agency of GoI/State Government, one- time grant of 50% of cost of Plant & Machinery, other than the land and infrastructure, or Rs 50.00 lakhs, whichever is less is to be provided.

Assistance towards the training cost of incubates will be met out of the ATI scheme of the Ministry as far as possible for both centres. Total budget plan is Rs 62.50 cr for 2014-2016.
Who can apply? The Scheme aims to implement the Incubation and Commercialisation of Business Ideas Programme through technical / research institutes, including those in the field of agro based industry. These would be designated as Knowledge Partners and would incubate new/existing technologies for their commercialisation.

The scheme also provides funds for the incubator/incubation and creates necessary synergy between this scheme and the Livelihood Business Incubators/Technology Business Incubators and Incubation schemes of MSME / NSIC / KVIC / Coir Board / Other Ministries/Departments as well as Private incubators.
How to apply? Application can be sent to Aspire Scheme Steering Committee of the Ministry of MSME. The Scheme Steering Committee will be responsible for overall policy, coordination and management support. The Council will be chaired by Secretary, Ministry of MSME.
Whom to contact Deputy Secretary (ARI), M/o MSME
Ph: 011-23062745,
Email: samar[dot]nanda[at]nic[dot]in
Download Scheme Guidelines