MSME Alert! What is MSME Champions scheme by govt and its benefits?

Feb 03, 2024 Abhishek Yadav

MSME Champions scheme has been formulated through Standing Finance Committee (SFC)by merging all 6 components of the Technology Upgradation Scheme (TUS) for a period of 5 years, 2021-22 to 2025-26.

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It is a holistic approach to unify, synergize and converge various schemes and Interventionswith a single purpose.

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The end objective is to pick up clusters and enterprises and modernise their processes, reduce wastages, sharpen business competitiveness and facilitate their national and global reach and excellence.

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There are 3 components under the MSME Champions scheme,1. MSME-Sustainable (ZED)2. MSME-Competitive (Lean)3. MSME-Innovative (for Incubation, IPR, Design and Digital MSME)

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MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate & incentivise them for ZED Certification while also encouraging them to become MSME Champions.

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The ZED Certification aims to enhance the competitiveness of an MSME through assessment, handholding, managerial and technological intervention etc.

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The benefits of this scheme are 10% for Women/SC/ST-owned MSMEs OR MSMEs in NER / Himalayan / LWE / Island territories/aspirational districts. ii. 5% for MSMEs also a part of the Ministry's SFURTI OR Micro & Small Enterprises - Cluster Development Programme (MSECDP).

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MSME Innovative is a new concept for MSMEs with a combination of innovation in incubation, design intervention and protecting IPR in a single-mode approach to create awareness amongst MSMEs about India’s innovation and motivate them to become MSME Champions.

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Financial Assistance to Host Institute(HI) for developing and nurturing the ideas shall be provided up to a maximum of Rs 15 lakh per idea to Host Institute.

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MSME-Competitive (Lean) addresses competitiveness through lean manufacturing techniques, this component aims to streamline processes and minimize inefficiencies within MSMEs.

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The benefits of this scheme are basic-free, Intermediate- Rs 1,20,000, advanced- Rs 2,40,000, Financial Assistance to a group of MSME Units for the adoption of Lean tools/techniques, Subsidy on the cost of Implementation: 90% of the Total Cost of Implementation.

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