NMCP | Overview
- The National Manufacturing Competitiveness Programme (NMCP) aims to help the Micro, Small and Medium Enterprises (MSMEs) to become competitive. The objective of NMCP is to develop global competitiveness among Indian MSMEs.
- This programme seeks to improve the entire value chain of the MSME sector through the following components:
- Lean manufacturing Competitiveness Scheme (LMCS) for MSMEs
- Promotion of Information and Communication Tools (ICT) in MSME sector
- Technology and Quality Upgradation Support to MSMEs
- Design Clinics Scheme for MSMEs
- Enabling Manufacturing Sector to be competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT)
- Marketing Assistance and Technology Upgradation Support to MSMEs
- National campaign for building awareness on Intellectual Property Rights (IPRs)
- Support for Entrepreneurial and Managerial Development of SMEs through incubators
- Marketing Assistance/ Support to MSEs (Bar Code)
1. Lean Manufacturing Competitiveness Scheme (LMCS) for MSMEs
- This scheme assists MSMEs in reducing their manufacturing costs. This is done through various means such as:
- Personnel management
- Better space utilization
- Scientific inventory management
- Improved process flows
- Reduced engineering time
- LMCS also helps improve the quality of products and lowers costs which are essential for competing in national and international markets.
- The activities planned under the scheme include implementation of:
- Total Productive Maintenance (TPM)
- 5S (stands for Sort, Set in order, Shine, Standardize and Sustain)
- Visual Control
- Standard Operation Procedures (SOPs)
- Just in Time (JIT)
- KANBAN System
- Cellular Layout
- Value Stream Mapping
- Poka Yoke/Mistake Proofing
- Kaizen Blitz/Rapid Improvement Process
- Single Minutes Exchange of Dies (SMED)/ Quick Changeover
- The Scheme has been approved as a pilot project for Lean interventions in 100 Mini Clusters.
- Application by Mini Clusters (MCs)/ Special Purpose Vehicle (SPV) for participation in LMCS (in the prescribed format).
- The application must contain following enclosures:
- Memorandum of Agreement
- Power of Attorney by MC to its Authorized Signatory, on a stamp paper of relevant value
- The Lean Manufacturing techniques that will be employed to increase the competitiveness of the MSME sector, have the following added benefits too:
- Reduces waste
- Increases productivity
- Inculcates good management systems
- Introduces innovative practices for improving overall competitiveness
2. Promotion of Information and Communication Tools (ICT) in MSME sector
Under this scheme some clusters of SMEs which have quality production and export potential are identified. These clusters are then assisted in adopting ICT applications to achieve competitiveness in the national and international markets.
- The activities under the scheme include:
- Identifying target clusters for ICT intervention
- Appointment of Technology Providers
- Awareness program and Feasibility Report
- Preparation of Detailed Project Report (DPR)
- Setting up of e-readiness centre
- Subsidy for procurement of hardware and software
- Establishment of National Portal for MSMEs
- Evaluation/impact assessment studies
Interested MSME clusters/units may send their request to the office of Development Commissioner (DC), MSME. The guidelines of the scheme is available at www.dcmsme.gov.in
- Potential clusters will be motivated to adopt the ICT tools and applications for their production and business processes. This will improve their competitiveness in the national and international market.
- By extending the support of basic ICT infrastructure to MSMEs, the scheme will help to:
- Sensitize MSMEs with potential businesses of ICT tools
- Standardize the business processes/ activities
- Encourage MSMEs and software partners for long term partnership in ICT adoption
3. Technology and Quality Upgradation Support to MSMEs
- This scheme seeks to sensitize the manufacturing (MSME) sector about various measures to reach global competitiveness standards. These measures include:
- Upgradation of technologies
- Usage of energy efficient technologies to reduce emissions of Green House Gases
- Adoption of other technologies mandated as per the global standards
- Improvement in quality
- Reduction in cost of productions
The major activities planned under the scheme are:
- Capacity Building of MSMEs Clusters for Energy Efficient Technologies (EET)/Clean Development Mechanisms (CDM)
- Implementation of Energy Efficient Technologies and Other Technologies Mandated as per the Global Standards in MSMEs
- Setting Up of Carbon Credit Aggregation Centres (CCA) for Introducing and Popularizing Clean Development Mechanism (CDM) in MSME Clusters
- Encouraging MSMEs to Acquire Product Certification Licenses from National/ International Bodies
- Impact Study of the Scheme, Evaluation, Administrative and Other Activities
Following Applications must be submitted in the prescribed format:
- Application for Grant of Financial Assistance towards Organizing Awareness Programme
- Application for Implementation of EETs Projects
- Application for Setting Up of CCA Centres in MSME Cluster
- Application for Claiming Reimbursement of Product Certification Charges by MSMEs
- The Scheme will sensitize the manufacturing MSME sector in India to the use of energy efficient technologies and manufacturing processes. This will reduce the cost of production. The emissions of harmful GHGs will also be checked.
- The scheme will lead to additional benefits for the MSME sector through CDM. Additional income can be derived through CDM trading
4. Design Clinics Scheme for MSMEs
- This scheme was jointly launched by the MSME Ministry and the National Institute of Design (NID) in 2010.
- It seeks to bring together the MSME sector and design expertise onto a common platform. The aim is to provide expert advice and solutions on design problems. The scheme also aims at value-added cost effective solutions.
- The broad activities planned under the scheme include:
- Set up of Design Clinics Centre in Delhi along with 4 regional centers for intervention on the design needs of the MSME sector
- Organizing seminar/workshops
- Financial assistance to student-designed projects/individual projects
- The funding support /grant will be:
- upto a maximum of 60% of the total approved project cost or Rs.9 lacs, whichever is less, in case of a individual MSME or a group of not more than 3 MSME applicants.
- upto a maximum of 60% of the total approved project cost or Rs.15 lacs whichever is less, in case of a group of 4 or more MSME applicants.
- The scheme will also support design work of final year, full-time undergraduate/ post graduate by reimbursing 75% of expenses incurred subject to a maximum of Rs.1.5 lakh for the projects done for MSME under the supervision of Parent Design Institution.
- Application for Design Clinic Scheme Funding Assistance
- Design Clinic Scheme Progress Report of Approved Project
- Design Clinic Evaluation Form
- Design Clinic Scheme completion Report of Approved Project
- The scheme will lead to awareness of the value of design.
- The competitiveness of local products will be increased through better designing.
5. Enabling Manufacturing Sector to be competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT)
- This scheme was launched by the Government of India in 2008 to improve quality and productivity in the MSME sector. The aim is to create a sense of quality consciousness in this sector.
- The major activities under this scheme are:
- Introduction of Appropriate Modules for Technical Institution
- Organizing Awareness Campaigns for MSEs
- Organizing Competition-Watch (C-Watch)
- Implementation of Quality Management Standards and Quality Technology Tools in selected MSEs
- Monitoring International Study Missions
- Impact Studies of the initiatives
All eligible MSE units should submit their Application in the prescribed format along with following documents:
- An undertaking to contribute 25% or 50% of the total cost as applicable to the unit, wherever applicable. (In case if any indirect investment is required, the beneficiary units would take care of it.)
- An undertaking / Affidavit that similar benefits have not been obtained from any other Government sponsored schemes.
- Funding support for conducting training and awareness activities will be available under the scheme
6. Marketing Assistance and Technology Up-gradation Support to MSMEs
- Under this scheme clusters of MSMEs with quality production and export potential are identified. These clusters are then encouraged to achieve competitiveness in the national and international markets.
- The scheme aims to assist the marketing competitiveness of MSME sector by improving their techniques and technology for promotion of exports.
- The activities planned under this scheme are:
- Technology Upgradation in Packaging.
- Skill Upgradation/ Development for modern marketing techniques.
- Competition studies.
- Special component for North Eastern Region.
- New markets through State/District level local exhibitions/Trade fairs.
- Corporate Governance practices.
- Marketing Hubs.
- Reimbursement to ISO 18000/22000/27000 certification.
The applications/proposals for seeking assistance under the scheme must be submitted directly to NSIC, with full details and justification, in the prescribed format.
- Under this scheme cluster based studies on packaging status as well as the need for upgradation will be carried out.
- Funding support for conducting training and awareness activities will be provided under the scheme.
- Unit based intervention for packaging requirement.
How to Apply? NMCP
Lean Manufacturing Competitiveness Scheme (LMCS) for MSMEs
The applicants must submit their application using Udyog Aadhaar number. NMIUs (National Monitoring and Implementing Units) will examine the application. Once the application is accepted, the NMIU will select the LM consultant at the SPV (Special Purpose vehicle) level. Lean intervention will then start at the unit level.
Promotion of Information and Communication Tools (ICT) in MSME sector
For appointment of Technology Providers (TPs) the interested IT firms must apply in response to the advertisement for Expression of Interest (EoI). The procedure for application for participation in some of the other major activities under this scheme such as the establishment of National Portal for MSMEs, impact assessment / mid-term evaluation etc will be detailed in the EOI & RFP document as and when issued for advertisement.
Technology and Quality Upgradation Support to MSMEs
The application process for each of the major activities under the scheme is as given below:
(i) Capacity Building of MSME Clusters for Energy Efficiency/Clean Development Interventions and other technologies mandated as per the global standards
The application format for conducting the awareness programmes is given at Annexure-I. The implementing agencies interested in preparing the cluster level and enterprise level DPRs must submit details of their technical competencies and credentials in the format given at Annexure I-A.
(ii) Implementation of Energy Efficient Technologies (EET) in MSME units
Interested MSME units must apply first to SIDBI/Banks/Financial Institutions for sanction of project loan on the basis of the DPR. After appraisal of the Project by SIDBI/Banks/Financial Institutions, three copies of the application in the format given at Annexure-II must be submitted through SIDBI/Banks/Financial Institution concerned. SIDBI will submit the proposals to the Steering Committee for necessary approval. After sanction of assistance under the scheme, the MSME unit concerned shall sign an agreement with the SIDBI/Bank/Financial Institution sanctioning the loan in the prescribed format.
(iii) Setting up of Carbon Credit Aggregation Centres (CCA) for introducing and popularising clean development mechanism (CDM) in MSME clusters
Eligible applicants can apply in the format at Annexe – III. They will also have to submit a brief project proposal containing details, targets, deliverables, etc., of the Project.
(iv) Encouraging MSMEs to acquire product certification/licences from National/International bodies and adopt other technologies mandated as per the global standards
MSMEs interested in availing assistance for obtaining product certification under the scheme may forward application in the specified format, as given at Annexure-IV (A to F), to the MSME-Development Institute (MSME-DI) concerned, along with the required documents, receipts, reports, etc. A Screening Committee at the MSME-DI will scrutinize the applications and the decisions of the Committee will be communicated to the applicants within 45 days of the receipt of the application.
(v) Study of Impact of the scheme, administrative and other miscellaneous items
The procedure for application, qualification, etc. for participation in this activity will be detailed in the ‘Expression of Interest’, as and when issued.
Design Clinics Scheme for MSMEs
Applications for the scheme can be made in multiple ways. Multiple Professional Design Projects may be allowed for MSMEs subject to fixing a cap by evolving some mechanism. Application can be made by the MSME with request for grant without a design company, along with a Design Consultancy which satisfies the given criteria, or along with an academic institution which satisfies the criteria.
Enabling Manufacturing Sector to be competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT)
Eligible MSEs can submit their application in the prescribed Performa along with an undertaking to contribute 25% or 50% of the total cost as applicable to the unit and an undertaking / affidavit that similar benefits have not been obtained from any other Government sponsored schemes.
Marketing Assistance and Technology Upgradation Support to MSMEs
Applications for seeking assistance under the scheme must be submitted directly to NSIC, with full details and justification. The Screening Committee shall examine and consider the proposals, keeping in view the eligibility conditions and other criteria laid down under the scheme. The proposals will then be put up for approval by the Chairman-cum-Managing Director (CMD) of NSIC along with its recommendations. The proposals requiring approval of the Administrative Ministry shall be forwarded by CMD, NSIC, with proper justification, for consideration and approval of the Ministry, in consultation with IFD.
National campaign for building awareness on Intellectual Property Rights (IPRs)
The activities proposed under this scheme such as awareness programs, pilot studies, workshops, specialized training etc will be considered and approved by the Project Implementation Committee (PIC) specially constituted for appraisal of the proposals and recommending approvals. The decision of PIC will be placed before Steering Committee seeking further directions for the implementation of this programme.
Support for Entrepreneurial and Managerial Development of SMEs through incubators
Suitable proposals are invited from various technical management institutes by approaching them individually and through placement of advertisements in leading newspapers. The proposals, upon receipt, will be evaluated by a Technical Approval Committee. The proposals will then be placed before a Selection Committee, headed by AS&DC (MSME), for final approval.
Marketing Assistance/ Support to MSEs (Bar Code)
Eligible MSEs may apply to the Director, MSME- Development Institute of their region in prescribed application form for claiming reimbursement on Bar Code. Application Form along with formats for the supporting documents may be collected from Director, MSME-DI of their region and are also available on www.dcmsme.gov.in