The government on Friday launched the revamped MSME Competitive (LEAN) scheme to make it more beneficial for enterprises and stakeholders. Talking to CNBC TV18, Micro Small and Medium Enterprises (MSME) Joint Secretary, AK Singh, said that Lean scheme will `benefit the MSMEs.
"Under the revamped scheme, the government will now provide 90 percent of the implementation cost for handholding and consultancy fees as against 80 percent previously. Apart from this, the government has 95 percent contribution in the consultancy fees in some categories."
The decision has been taken because the government wants a reduction in compliance under Lean Manufacturing, he added.
The government has also done away with the requirement of setting up a special purpose vehicle in every cluster.
Earlier, the implementation period for the scheme was set at 18 months. However, under the revamped scheme it has been divided into phases – Basic (2 months), Intermediate (6 months) and Advanced (12 months).
MSME Secretary B B Swain said that the revamped scheme is being introduced in two phases. The first phase will cover the manufacturing sector while the services sector will be covered in the second phase.
”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 per cent apart from other benefits,” he said.
In his virtual address, Union MSME Minister Narayan Rane said LEAN has the potential to become a national movement and that it aims to provide a roadmap for global competitiveness for the MSMEs in India.
LEAN will not only attempt to improve quality, productivity and performance but also the capability to change the mindsets of manufacturers and transform them into world class manufacturers, he said.
”To support MSMEs, the government will contribute 90 percent of implementation cost for handholding and consultancy fees. There will be an additional contribution of 5 percent for the MSMEs which are part of SFURTI clusters, owned by Women/SC/ST and located in North East Region,” the MSME ministry stated.
Step to increase capacity
Through the scheme, the government wants to increase the capacity of MSME units. The Lean Manufacturing Scheme will be adopted to increase the capacity of units and it will help a lot in reducing the cost of MSMES sector. With the help of this scheme, at least 25-30 percent of compliance cost of the MSME sector will reduce.
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