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MSME Minister Narayan Tatu Rane launches MSME Competitive (LEAN) Scheme

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Shri Narayan Rane launches MSME Competitive (LEAN) Scheme

On 10th March 2023, Union Minister Narayan Tatu Rane, Ministry of Micro, Small & Medium Enterprises (MoMSME), launched the MSME Competitive (LEAN) Scheme (MCLS) and National Scheduled Castes (SC)/Scheduled Tribes (ST) Conclave under MSME Champion Scheme in the event organised at the NDMC Convention Centre, New Delhi, Delhi.

What is LEAN?

LEAN is defined as a set of management practices to improve efficiency and effectiveness by eliminating waste through kaizen.

  • Kaizen is a Japanese word that essentially means “change for the better” or “good change.”

Lean Manufacturing or Lean Production, also known as LEAN, is a production practice that considers the expenditure of resources for any goal, other than the creation of value for the end customer, to be wasteful, and thus, a target for elimination.

About  MSME Competitive (LEAN) Scheme (MCLS):

Aim: To provide a roadmap to global competitiveness for the MSMEs of India.

Objective: To enhance the Domestic and Global Competitiveness of MSMEs through the application of various Lean Techniques like

  • Reduction In – Rejected Rates; Product and Raw Material Movements & Product Cost
  • Optimization Of – Space Utilization; Resources like Water, Energy, Natural Resources etc.
  • Enhancement Of – Quality in Process and Product, Production & Export Capabilities, Workplace Safety, Knowledge & Skills Sets, Innovative Work Culture, Social & Environmental Accountability, Profitability, Introduction & Awareness to Industry 4.0, & Digital Empowerment

Implementation agency– Quality council of India(QCI) and National Productivity Council (NPC)

Key Points:

i.MCLS will create awareness about LEAN Manufacturing practices among the MSMEs and motivate and incentivize them to attain LEAN level and encourage them to become MSME Champions.

ii.The scheme will improve the quality, productivity and performance, and also improve the capability to change the mindset of the manufacturers.

iii.Under MCLS, MSMEs will implement LEAN manufacturing tools like 5S, Kaizen, KANBAN, visual workplace, and Poka Yoka under the guidance of trained and competent LEAN consultants to attain LEAN levels like basic, intermediate and advanced.

iii.Through this the MSMEs will substantially reduce wastage, increase productivity, improve quality, work safely, expand their markets, and become competitive and profitable.


i.Under this scheme, the government of India will contribute 90% of the implementation cost for handholding and consultancy fees.

ii.An additional 5% will be offered to the MSMEs which are part of the Scheme of Fund for Regeneration of Traditional Industries(SFURTI) clusters, owned by women/Scheduled Castes (SC)/Scheduled Tribes (ST) and located in North Eastern Region(NER).

iii.Additionally, there will be a 5% contribution for MSMEs which are registered through Industry Associations/ Overall Equipment Manufacturing (OEM) organizations after completing all levels.

  • This will encourage the Industry Associations and OEMs for motivating their supply chain vendors to participate in this scheme.

About Ministry of Micro, Small & Medium Enterprises (MoMSME):

Union Minister– Narayan Tatu Rane (Rajya Sabha- Maharashtra)
Minister of State– Bhanu Pratap Singh Verma(Constituency- Jalaun, Uttar Pradesh)