Step-by-Step Guide to the MSME Competitive LEAN Scheme: Get Up to 90% Grant! 

By Ravi Bhushan Ray


MSME Competitive LEAN Scheme:- Union Minister Narayan Rane introduced the MSME Competitive (LEAN) program for small and medium businesses. The government made changes to the scheme to make it more beneficial for businesses and stakeholders. The government will now cover 90% of the implementation cost for handholding and consulting fees, an increase from the previous 80%. The requirement to place a special-purpose vehicle in each cluster has also been removed. For more detailed information on the MSME Competitive (LEAN) Scheme, including highlights, objectives, features, benefits, assistance, and application process, continue reading. 


MSME Competitive LEAN Scheme

The Plan aims to help small businesses by reducing their production costs through better staff management, space utilization, inventory management, improved process flows, and quicker engineering lead times. This will also enhance product quality and lower prices, which are important for competing in both local and international markets. While larger businesses in India have been using these methods, smaller ones have not due to lack of awareness and the high cost of hiring skilled Lean Manufacturing Counselors or Consultants MSME Competitive LEAN Program. As a result, the majority of small businesses cannot afford these services. The scheme has been approved as a pilot project for using lean techniques in 100 mini clusters.

Key Highlights Of MSME Competitive LEAN

🏢 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

The main aim of the Lean Manufacturing Competitiveness Scheme (LMCS) is to enhance the competitiveness of manufacturing in the MSME Sector. Lean manufacturing employs various techniques like Total Productive Maintenance (TPM), 5S, Visual control, Standard Operation Procedures, Just in Time, Kanban System, Cellular Layout, Poka Yoke, etc., to identify and eliminate waste and streamline the system. The focus is on making the entire process run smoothly, not just specific processes, and also emphasizes empowering workers.

Features and Benefits of the MSME Competitive (LEAN) Scheme

The MSME Competitive (LEAN) Scheme has several important features and benefits.

  • It aims to improve quality, productivity, and performance, as well as change the mindset of manufacturers.
  • The program is designed to increase awareness of LEAN manufacturing techniques among MSMEs, motivate and reward them for adopting these techniques, and inspire them to become champions in the MSME sector.
  • By implementing LEAN manufacturing, MSMEs can reduce waste, increase productivity, improve quality, work safely, expand their market reach, and ultimately become more competitive and profitable MSME Competitive LEAN Program.
  • MSMEs will adopt LEAN manufacturing technologies such as 5S, Kaizen, KANBAN, visual workplace, and Poka Yoka to achieve basic, intermediate, and advanced levels.
  • Trained LEAN consultants will lead this effort.
  • The government will cover 90% of the coaching and consulting fees for MSMEs. Additionally, MSMEs that are part of SFURTI clusters, owned by women, SC, or ST, and located in NER will receive an extra 5% contribution.
  • MSMEs registered through Industry Associations/OEM groups after passing all levels will get an additional 5% contribution.

MSME Competitive (LEAN) Scheme Approach

The plan involves hiring Lean Manufacturing Consultants (LMCs) to assess the current manufacturing system of the Mini Cluster member units and to outline specific step-by-step schedules and procedures for implementing lean methods. A Special Purpose Vehicle (SPV) will be established within each cluster. It is expected that MSMEs will continue the program independently from the second year onwards, having learned about the benefits and cost savings resulting from LM approaches. The implementation structure consists of three tiers, with a group of approximately ten MSMEs (SPV) at the local level, and a Lean Manufacturing Screening and Steering Committee (SSC) under DC(MSME) at the highest level. The National Monitoring and Implementing Unit (NMIU) operates at the intermediate level, responsible for facilitating the program’s implementation and supervision. The National Productivity Council (NPC) is expected to act as the NMIU for the initial phase of 100 Micro Clusters.

MSME Competitive (LEAN) Scheme Assistance

The Indian government will give money for each Mini Cluster, which will be up to 80% of the consultant expenses. The MSME units that receive the money have to pay the remaining 20%.

MSME Competitive (LEAN) Scheme Application Process

The National Productivity Council (NPC) in New Delhi is looking for applications from industry associations or groups of about 10 MSME units that meet the requirements of the MSME-Development Act, 2006 and want to form SPVs (Mini Clusters). If you’re interested, you can apply in the given format.

Contact Details

If you have any questions or concerns about the MSME Competitive (LEAN) Scheme, you can contact us using the information provided below.

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


As we have shared with you all the information related to MSME Competitive LEAN Scheme in the article, if you want any other information apart from these information, then you can ask by messaging in the comment section given below. All your questions will definitely be answered. We hope that you will get help from the information given by us.

MSME Competitive LEAN Scheme

FAQ Related MSME Competitive LEAN Scheme

✔️ What is LEAN manufacturing competitiveness scheme for MSMEs?

Recently, Ministry of MSMEs launched the MSME Competitive (LEAN) Scheme to provide a roadmap to global competitiveness for the MSMEs of India. The idea is to improve quality, productivity, performance and capability to change the mind-sets of manufacturers and transform them into world class manufacturers.

✔️ Who launched the MSME LEAN Scheme?

Union Minister for MSME Shri Narayan Rane launched the MSME Competitive (LEAN) Scheme today. Speaking on the occasion Shri Rane said that LEAN has the potential to become a national movement and that it aims to provide a roadmap to global competitiveness for the MSMEs of India.

✔️ What is the new scheme of MSME 2023?

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.

✔️ Is MSME only for manufacturing?

All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification criteria of annual turnover and investment can apply for MSME registration.


Ravi Bhaushan Ray heads Content at He has 2 years of experience in creating content for academic and professional audiences. He has led editorial teams in Online Media, Academic Books & Journals Publishing, Test Prep, Study Abroad and eLearning. He has postgraduate degrees in Social Sciences and Management and…

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