Micro, Small & Medium Enterprises
National Manufacturing Competitiveness
Programme (NMCP) for MSME sector
Implemented by
Ministry of Micro, Small and Medium Enterprises
Government of India
New Delhi
1
Schemes for Exports
All most all the schemes of DC (MSME) are meant to
encourage MSME including export, However ;
•
National Manufacturing Competitiveness
Programme
(NMCP) for MSME Sector (To
Enhance
competitiveness of MSME sector to take-up
global challenges and
•
Export Promotion are dedicated schemes
National Manufacturing Competitiveness
Programme (NMCP) for MSME Sector
Challenges faced by Indian MSMEs
 Access to Technology
 I.P.R. related issues,
 Design as market driver
Wasteful usage of resources / manpower
Energy in-efficiency and associated high cost
Low ICT usage
Low Market penetration
Quality Assurance / certification.
3
National Manufacturing Competitiveness
Programme (NMCP) for MSME Sector
Objectives
 Focus on increasing competitiveness of MSME sector
Key initiative for survival of MSMEs in domestic /
international markets
A catalyst approach / create role models
Implementation with Public Private Partnership
Challenges for implementation
 Basically a Supply side initiative
 Fear of MSMEs in disclosing data.
 MSMEs are hesitant in investing their contribution.
NMCP - Plan Outlay for 2012-13
(Rs. crore)
S.
No.
Name of the Scheme
1.
Enabling Implementation of Quality Management Standards
and Quality Technology Tools (QMS/QTT) for SMEs
10.00
2.
Entrepreneurial & Management development of SMEs
through Incubators
12.00
3.
National Campaign for awareness in Intellectual Property
Rights
4.
Application of Lean Manufacturing
5.
Design Clinic Scheme
Proposed
Outlay
(2012-13)
5.00
15.00
14.00
6.
Technology & Quality Up gradation support for MSMEs
7.
Marketing Assistance & Technology Up gradation for
MSMEs
8.
Promotion of ICT in Manufacturing sector
Total
26.00
8.00
20.00
136.00
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1. Lean Manufacturing Scheme
• Objective: To minimize wastages in manufacturing
• Lean Manufacturing (LM) is Better Production of Goods by
 Eliminating Non-value Added Activities / Wastes
 Helping to Produce More with Same Resources
• Scheme is under operation on pilot basis for 100 mini clusters
• NPC is working as Monitoring & Implementing Agency
• Evaluation completed for current scheme and further upscaling EFC note being processed.
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7
Lean Manufacturing Scheme
Implementation approach
 Initially cluster units to be made aware regarding
lean techniques
 ‘Mini Clusters’ of 10 units (appx.) to be created
 SPV to be formed by ‘Mini Cluster’.
 GOI : Private Share – 80:20
 Max. cost of LMC to be Rs. 23.5 lakh
 Monitoring of milestones by NMIU.
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8
Lean Manufacturing Scheme ….contd.
• Total Scheme Budget
– GoI contribution
Financial Progress
– Till March 2012
Physical Progress
 Awareness Programme
 SPVs formed
 Lean Consultants finalized
 Lean implementation underway
Mini clusters
MSME units
:
:
Rs. 30.57 cr.
Rs. 25.87 cr.
:
Rs. 12.51 cr
:
:
:
:
:
:
120 (target 100)
100 (target 100)
85 (target 100)
85 (target 100)
840 (target 1000)
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9
1S implementation - scrap yard
Before
After
Removed the scrap in scrap yard. & create
the space for die storage
2S implementation - Packing & dispatch
area
Before
After
Packing & dispatch area –unwanted
material removed
Shining Example for Shadow Board
Before
After
Die Set up Graph- (Before/After)
SPVs formed (Zone wise)
SPVs
formed
Sr. No.
Zone
1
North
37
2
East
16
3
West
25
4
South
26
Total
104
SPVs formed (State wise)
S.No.
State
No. SPVs
formed
S.No.
State
No. SPVs formed
1
Andhra Pradesh
3
11
Madhya Pradesh
2
2
3
4
5
6
Assam
Bihar
Delhi
Gujarat
Haryana
12
13
14
15
16
Maharashtra
Orissa
Punjab
Puducherry
Rajasthan
7
Himachal Pradesh
2
1
11
8
3
2
17
Tamil Nadu
15
5
11
1
2
13
8
Jharkhand
3
18
Uttar Pradesh
7
9
Karnataka
5
19
West Bengal
5
10
Kerala
4
20
Uttarakhand
Total
1
104
SPVs formed (Sector wise)
S.No. Sector/Sub Sector
No. of SPVs
formed
18
S.No. Sector/Sub Sector
No. of SPVs
formed
7
14
Light Engineering
3
15
Machine Tools
3
16
Metal Work
1
Oil expellers
1
18
Packaging
2
19
1
2
Auto & Engg.
Components
Ball Bearing
3
Diamond Processing
1
Diesel
Engines/Motor&Pump
sets
Electrical/Electric Fans
2
6
Engg. & Fabrication
19
7
Food Processing
6
20
Chemical & Die
Units.
Pharma
8
Foundry
4
21
Plastic
4
9
Granite
1
22
1
10
Hand Tool
4
IT Hardware &
Electronics
Rice Milling
11
Handicrafts
2
24
Scientific Instruments
2
Apparels and Garments
8
25
White Goods
3
Leather
3
1
4
5
12
13
17
3
23
Total
2
3
104
Lean Manufacturing Scheme (Constraints)
• Lean Manufacturing is a comparatively new initiative
(on such a large scale) hence MSMEs are initially
hesitant
• Reluctance in data sharing
•
SPV formation is time consuming
• NPC has limited resources for monitoring on large
scale, hence some more agencies are required
• Good LMCs not inclined to work with MSMEs
• Pvt. Share is not being contributed as per schedule
• Difficulty in co-ordination among 10 units
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2. Design Clinics Scheme
 Objective:
 To Bring the industrial design fraternity closure to the MSME sector
 Increase the competitiveness of local products / services through design
 Develop an institutional base for the industry’s design requirement
 Major activities :
 Setting up of design clinic centre - HQ
 Regional Centres – 4 Nos.
 Awareness seminars and workshops – 200 Clusters.
 Design projects for individual MSME or a group of MSMEs
 Students Projects
 Orientation Programme for Designers
NID & IISc. Are the nodal agency
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18
Design Clinics Scheme – New Products developed by MSMEs
(1) Visitor
Management
System,
(2) Improved light
weight pump
(3) Bottle vision
equipment
19
Design Clinics Scheme – New Products
(1) Portable Hydraulic
(2) ENT multi scope
(3) Syringe (precision type)
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20
Design Clinics Scheme ……contd.
• Total Scheme Budget
– GoI contribution
:
:
Financial Progress
– Fund Released (upto 16.07.2012)
Physical Progress
 Setting up Design centres
 Design Seminars
 Design Workshops
 Design projects MSMEs
 Students
:
:
:
:
:
Rs. 73.58 cr.
Rs. 49.08 cr.
:
Rs. 15.30cr
5 (target 5 )
197 (target 200)
49 (target 200)
66 (target 300)
23 ( target 100)
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21
Design Clinics Scheme (Constraints)
 Lack of inclination of Industrial Design professionals
towards MSMEs
 MSMEs hesitant to contribute their share
 Sector specific design institutes not yet actively
involved
 MSMEs still believe in copy – paste rather then
innovation
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3. Technology and Quality Upgradation Support
(TEQUP)
Objective:
• Focuses
on
Energy
Conservation,
CDM
&
Product
Certification
• Activities Proposed:
1) Awareness Generation for Energy Efficient Technology
2) Credit Linked subsidy for EET Projects (25 %)
3) Encourage MSMEs through subsidy to acquire National
as well as International Certification of Products
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ENERGY EFFICIENT TECHNOLOGY FOR MSME SECTOR
Roller kiln - Morbi ceramic cluster
Boiler - Plywood unit, Ernakulum
Re-cupeater – pot furnace Firozabad
Technology and Quality Upgradation Support
(TEQUP)
Rs. 140.98 cr.
 Total Scheme Budget
:
◦GoI contribution
:
Rs. 65.73 cr.
:
Rs. 5.97 cr
Financial Progress
◦Till end of 2011-12 (XI Plan)
◦Expenditure (till 31.3.2012)
:
Rs. 6.04 cr.
Physical Progress
MSMEs asstd for EETs (XI Plan):
113 (target 390)
MSMEs asstd for product certi.
4000)
:
448
Awareness programme
:
50 (target 60)
(target
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TEQUP – Constraints
•
Fund release for EETs too complex
– SIDBIs procedure may be streamlined
•
EET DPRs for MSMEs (1050 nos ) received from BEE recently,
– These need to be capitalized with the assistance of MSME-Dis
•
Product Marking reimbursement taking time at MSME-DI end
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4. Promotion of ICT in MSME sector
• The
modified
ICT
Scheme
with
cloud
computing approach has been concurred by
Planning
Commission
meeting will be held.
and
Shortly
SFC
Advantage of Cloud Computing
• Capital Expenditure(CAPEX) is getting
converted into operational expenditure
(OPEX).
• Device and Local independent
• Centralized meeting system.
• Pay as you use model facility
• MSMEs does not have to invest in IT
personnel for maintenance purpose.
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Components of Cloud Computing
• Software as Service
• Portal as Service
• Infrastructure as Service
29
SCALING OF SUBSIDY*
Sl. Turn over
No.
Category
Of MSME
1st year
subsidy
2nd year
subsidy
3rd year
subsidy
1.
Below Rs.1.0 cr.
OTNER
85 %
75 %
70 %
2.
Rs. 1.0 cr < up to
Rs. 5.0 cr.
OTNER
75 %
70 %
65 %
3.
Rs. 5.0 cr. And
Above
OTNER
60 %
55 %
50 %
4.
All
NER,
Special
states
85 %
75 %
70 %
Women
owned units
85 %
75 %
70 %
5.
All
* Tentative
FUNDING PATTERN OF MODIFIED ICT
SCHEME* (Rs. In Lacs)
Sl.
No.
Activity
Quantity
Rate
Done by
1.
Awareness
Programme and
workshops, etc.
100
NOS.
2.0
MSME-DI Service
Provider, with local
partners, etc.
2.
Subsidy for
availing Cloud
computing
services
1500
units
3.0
On service usage
model
National Portal
for MSMEs
LS
100
Impact
Assessment
LS
50
3.
4.
TOTAL
* Tentative
GOI
contr.
Pvt
Contr.
Total
200
-
200
3375
1125
4500
By Outsource
Agency
200
-
200
By Outsource
Agency
50
-
50
3825
1125
4950
5. Quality Mgt. Systems/Tools (QMS/QTT)
Objectives:
•
Scheme to support awareness generation as well as implementation of
Quality System Tools in MSME sector
 Conforming to International Standards, 5S, Six-sigma, TQM, TPM
 ISO 9000, ISO 14000, ISO18000, ISO 22000 etc.
•
Major activities to propagate Quality Management in MSMEs are:
1) Compulsory Courses in Govt . ITIs / Polytechnics
2) Awareness Programmes in Clusters on QMS / QTT topics
3) Implement Quality Mgt Techniques among MSMEs
4) Special Studies for Threatened Products
5) Assist International Study Missions for SME groups
6) Organize National level workshop on QMS/QTT
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32
Quality Mgt. Systems/Tools (QMS/QTT) ….Contd.
Progress:
1)
Course materials for 1800 ITIs prepared and 1745 teachers
trained,
2)
Course details for Polytechnics is taken up this year.
3)
More than 364 awareness programmes in
completed on QMS / QTT topics by expert agencies,
MSME clusters
4)
Implementation of Quality Mgt .Techniques among MSMEs –
10 clusters has been initiated.
5)
Assist International Study Missions for SME groups – 1 mission
to Japan (with 20 SMEs) completed last year.
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33
Quality Mgt. Systems/Tools (QMS/QTT)
Rs. 50.00 cr.
• Total Scheme Budget
:
– GoI contribution
:
Rs. 41.10 cr.
:
Rs. 5.31 cr
 Awareness Programme
:
364 (target 400)
 ITI teachers trained
:
 Study mission
:
Financial Progress
– Till date
Physical Progress
 QMS/QTT implementation
;
1745(target 1800)
01
100nos.MSME initiated
(10 Cluster)
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34
QMS/QTT (Constraints)
• QMS/QTT implementation not yet sanctioned due to IFW
insisting on competitive bidding for engaging expert agency
• Limitation to use only clusters from Threatened product
catagory
•
QMS/QTT courses yet to be prepared for Polytechnics
• State Govt not sparing ITI teachers for training
• MSMEs / Associations Hesitant to give contribution
• Medium units not included
35
35
6. I P R Campaign
• Objectives:
• IPR Tools
:
–
Patents
Trademark
Indl. Design
–
Copyrights
G.I.
Trade Secret
• Most MSMEs are unaware of IPR Benefits / Norms
• Focused Activities
1) Awareness & Sensitization Programmes
2) Pilot Study
3) Interactive Seminars / Workshops
4) Short / Long Term Training
5) IP Facilitation Centre
6) Assistance for Grant on Patent / GI Registration
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36
IPR Campaign
Rs. 55.00 cr.
• Total Scheme Budget
:
– GoI contribution
:
Rs. 50.00 cr.
– Till end of 2011-12
:
Rs. 7.64 cr
– Budget Outlay (2012-13)
:
– Expenditure (till 12 July,12)
:
Financial Progress
Rs. 5.00 (GoI)
Rs. 8.42 cr.
Physical Progress
 Assistance for setting up IPFC :
 Awareness Programme
:
 Workshops
:
 Pilot Study
:
 Short term training
:
24 (target
40)
128 (target 150)
42 (target 50)
02 ( target
30)
07(target 50)
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37
IPR Campaign (Constraints)
1) Lack of Awareness, Knowledge & Expertise
2) Lack of confidence in Enforcement mechanism and
perception of higher cost of Monitoring & litigation.
3) Majority of MSMEs do not have IP Strategy in place.
4) Shortage of Trained Human Resources
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38
7.
Incubators
Objectives:
 Assist Incubation of Innovative Ideas
 Promote Emerging Technological
Innovative Ventures
 Encourage Ideas to Become MSMEs
&
Knowledge-based
• 100 BIs to be Located in engineering colleges, management
institutions and R&D Institutes @ 25 p.a in 4 yrs.
• Govt. Grant (Max. 85%) = Rs.4 - 8 lakh per Idea
• Each BI to Assist 10 Ideas / Units – Max. Rs.62.5 lakh + Rs.3.78 for
Infrastructure & Training.
• BIs to support and Nurture ideas for commercialization in a year
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39
Incubators
Rs. 79.45 cr.
• Total Scheme Budget
:
– GoI contribution
:
Rs. 66.50 cr.
– Till end of 2011-12
:
Rs. 9.00 cr
– Budget Outlay (2012-13)
:
– Expenditure (till June,12)
:
Rs. 9.20cr.
 Incubators set up
:
105 (target 100)
 Incubatees approved
:
 Incubatees assisted
:
Financial Progress
Rs. 12.00 cr (GoI)
Physical Progress
350 (target 1000)
250
40
40
Constraints (Incubators)
•
•
•
•
Lack of proposals with new ideas
Payment terms not attractive ( 30 %, 70 %)
Delay in Up-front contribution from Beneficiary
Delays in signing agreement Incubator / Incubatee
41
8. Marketing Assistance and Technology
Upgradation Scheme for MSMEs
•
Objectives:
•
To enhance MSMEs competitiveness in the National as well as
International market through following activities;
•
Major activities:

Technology up gradation in packaging

Skill up gradation /development for Modern marketing techniques

Special component for NER clusters

State/District level local exhibitions

Corporate governance practices

Marketing hubs

Reimbursement to ISO 18000/22000/27000 certification
42
42
Marketing Assistance and Technology
Upgradation Scheme for MSMEs
• Total Scheme Budget
– GoI contribution
:
:
Rs. 23.00 cr.
Rs. 18.61 cr.
Financial Progress
– Till 16.07.2012
– Budget Outlay (2012-13)
– Expenditure (till March,12)
:
:
:
Rs. 0.95 cr.
Rs. 8.00 cr.
Rs. 0.99 cr.
Physical Progress
 MSMEs (NER) benefitted
:
 MSMEs (OTNER) benefitted
:
 ISO 18000/22000
/27000
 Corporate Governance
:
18
847
:
20
7
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43
Marketing Assistance and Technology Upgradation
Scheme for MSMEs (Constraints)

Selection of agency is through EoI / Tender

ISO certification agencies not available

Duplicity of activity with other similar initiatives

State level local exhibitions not allowed outside states

Corporate governance practice not preferred by MSMEs

Marketing hubs only for limited scope of work
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44
9. Bar Code
Objectives:
• Bar Coding assist in popularizing MSME Products, especially
for Exports & Retail
• Bar Coding an effective Tool to improve marketability
• Reimbursement allowed :
 75% of Annual Fee for first 3 years (Bar Code Certificate)
45
45
Bar Code contd……..
• Bar Code Component (NMCP) has been merged
in MDA scheme for the year 2012-13 onwards.
Further Funds for Bar Code is in process for
allocation to MSME-DIs.
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46
NMCP Web Applications
-
Bar Code
Marketing Assistance
Product Certification
Incubator
Design Clinic
NMCP Web Applications
-
Bar Code
Marketing Assistance
Product Certification
Incubator
Design Clinic
Web Address
• http://dcmsme.gov.im
• http://nmcp.dcmsme.gov.in (To launch soon)
Thank You
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