Micro, Small & Medium Enterprises (MSME)
NMCP SCHEMES
Jawhar Sircar
Additional Secretary & Development Commissioner
Ministry of Micro, Small & Medium Enterprises
Government of India
09 May 2008
MEETING OF DIRECTORS OF MSME DIs
New Delhi
1
NATIONAL MANUFACTURING
COMPETITIVENESS PROGRAMME - COMPONENTS
Full Name of the Scheme
Short Name

Marketing Support/Assistance to MSMEs
BAR CODE

Support for Entrepreneurial and Managerial Dev
INCUBATORS

Enabling Manufacturing Sector to be competitive
thru Quality Mgt. Standard & Quality Tech. Tools
QMS/QTT

National Campaign for Investment in Intellectual Property
IPR

National Programme on Application on Lean Mnf.
LEAN

Mini Tool Rooms proposed to be set up by Min. of MSME
MTR

Promotion of ICT in Indian Manufacturing Sector
ICT

Technology & Quality Upgradation Support
TECH UP

Design Clinic Scheme for design expertise to Mnf. sector
DESIGN

Marketing Assistance/SMEs and Technology Upgradation
Activities - Ministry of SSI in co-operation with TIFAC/CSIR
MARKETING
2
NMCP – New Activities
(Over next 4 years)
No
Name of the
Component
Rs. Crore
4 years
Total Project Cost
GOI Share
2008-09
GOI Share (BE)
1
BAR CODE
1.50
1.50
0.20
2
INCUBATORS
79.45
66.50
8.00
3
QMS / QTT
50.00
40.00
7.00
4
IPR
55.00
50.00
8.00
5
LEAN
230.00
185.20
20.00
6
MTR
350.00
135.00
20.00
7
ICT
100.00
65.50
10.00
8
TECH UP
214.56
78.60
10.00
9
DESIGN
50.00
41.00
5.00
10
MARKETING
53.00
26.50
4.00
1183.51
689.80
92.20
TOTAL
3
STATUS OF NMCP SCHEMES
Rs. in Crore
S.
No.
Name of Scheme
(Cost of Scheme / Rs Cr.)
EFC
Clearance
RE
2007- 08
BE
2008 - 09
i
Bar Coding (1. 5)
Operational
from 01/6/07
0.1
0.20
ii
Incubators (79.45)

0.1
8.00
iii
QMS / QTT (50)

0.1
7.00
iv
IPR (55)

0.1
8.00
v
Lean (280.80)

0.1
20.00
vi
MTR (210)

0.1
20.00
vii
ICT (100)
0.1
10.00
viii
TECH UP (93.50)
0.1
10.00
ix
Design (50)
0.1
5.00
x
C Watch (53)
0.1
4.00
01.0
92.20
Total

4
1. BAR CODE

Existing MDA Scheme modified to popularize Bar Coding

Bar Coding an effective Tool to improve marketability

Reimbursement allowed :

One Time Registration Fee

75% of Annual Fee for 1st 3 years (Bar Code Certificate)

1400 SMEs to be Benefitted during 11th FY Plan

Need to Ramp-up Scheme


In the Context of Retail Boom / Exports
Guidelines on www.dcmsme.gov.in
5
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2. INCUBATORS (E & MD)




Object :

Assist Incubation of Innovative Ideas

Encourage Ideas to Become SMEs
Total Project cost – Rs. 79.45 cr

GOI Share – Rs. 66.50 cr

2008-09 BE – Rs. 8.00 cr
Final Approval Awaited

Guidelines on www.dcmsme.gov.in

Forms under Issue
Rs. 80 cr Project for 100 Business Incubators (BIs)
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2. INCUBATORS (E & MD)

100 BIs to be Located in R&D Institutes @ 25 p.a

Govt. Grant (Max. 85%) = Rs. 4 to 8 lakhs per Idea

Each BI to Assist 10 Ideas / Units

R&D Institutions and BIs to Suggest & Nurture

Can also be Dovetailed with other Schemes

Tie Up ‘Successes’ with VC / Angel Funds

Publicity & Proposals Essential for Success
7
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3. MINI TOOL ROOMS ON PPP MODE

10 Major Tool Rooms set up - German, Dutch, etc.

They are essential for MSMEs for Tools & Industrial Trng.

Tooling & Training Needs of MSMEs rising rapidly


As Govt. Funding is Limited, PPP is Emphasised
Total Project cost – Rs. 210.00 cr.

GOI Share – Rs. 135.00 cr.

2008-09 BE – Rs. 20.00 cr.

EFC and FM have Cleared. CCEA Note with CAB SECT

ILFS appointed Transactional Advisor

Guidelines by early June
8
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3. MINI TOOL ROOMS ON PPP MODE

MTR cost may range from Rs. 2 cr. to Rs. 25 cr.


Govt’s VGF @ 40% maximum
Expected Govt. Funding = Rs. 135 cr.

Total Cost of Projects : Rs. 350 cr. in 4 years

To be Managed by Private Partners only

Local Industry to gain from Services / Skills

Traditional Centre-State Option also open


GoI - Rs. 9 cr.
and
State - 6 cr.
Another Option

GoI – Rs. 9 cr. and
State + Pvt. (Rs. 6 cr.)
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4. IPR CAMPAIGN

IPR Tools
 Trade Secret
 Patents
 Indl. Design
 Copyrights
 G.I.
 Trademark

Most MSMEs unaware of IPR Benefits / Norms

Total Project cost – Rs. 55.00 cr. (GoI = Rs. 50.00 cr.)

2008-09 BE – Rs. 8.00 cr.

EFC has Cleared. Details Thrashed with Stakeholders

Scheme Ready. Guidelines Awaiting Approval

 7 FOCUSSED ACTIVITIES :

Immediate Publicity Required
10
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4. IPR CAMPAIGN
1) 150 Awareness & Sensitization Programmes

Rs. 1 lakh per Programme, by Assn etc. = Rs. 1.5 cr.
2) 30 Pilot Studies with Assns./Clusters = Rs. 75 Lakh

Rs. 2.5 lakh each for Diagnosis & Actions
3) 50 Interactive Seminars / Workshops

To Discuss Study Reports and Implementation

@ Rs. 2 lakh = Rs. 1 cr.
4) Short / Long Term Training of IPR Cadre for MSMEs

50 ST (2-3 weeks) and 10 LT (6 months)

@ Rs. 6 lakh (ST) and Rs. 45 lakh (LT) = Rs. 7.5 cr.
11
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4. IPR CAMPAIGN
5) 40 IP Facilitation Centres by SPV on PPP

For Handholding SMEs in IPR, on Low Fees

@ Rs. 65 lakh = Rs. 26 cr.
6) Financial Assistance for Patents and GIs (Rs. 10 cr.)

Patent @ Rs. 25,000 for Domestic, Rs. 2 lakh for Int’l

GI Regn. – Rs. 1 lakh per case
7) Activities with International Agencies (Rs. 2 cr.)

Best Practices, Capacity Building, Exchanges

25 nos. Domestic @ Rs. 5 lakh / 10 Int’l @ Rs. 7.5 lakh
8) Miscellaneous and Contingency (Rs. 1.25 cr)
12
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5. QUALITY MGT. SYSTEMS / TOOLS
( QMS / QTT )

MSME’s ISO Reimbursement Scheme Successful

QMS: ISO-22000 (Food), ISO-18000 (Health) etc.

QTT:
Introduce proven Tools like 6-Sigma, 5-S,
Kaizen, TPM, TQM etc.

Total Project cost – Rs. 50.00 cr (GoI = 80%)


2008-09 BE – Rs. 7.00 cr
Scheme Ready. Guidelines Awaiting Approval
13
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5. QUALITY MGT. SYSTEMS / TOOLS
( QMS / QTT )

5 Activities to Further Propagate Quality Mgt:
1) Compulsory Courses in ITIs / Polytechnics

QCI/NPC to prepare Course Curricula

1800 ITIs / Rs. 4.25 cr p.a = Rs. 17 cr
2) Assist International Study Missions

For Detailed Study of Best QM Institutions

2 missions / Rs. 1 cr p.a = Rs. 4 cr
3) Special Programmes for Threatened Products

Detailed Analysis of Selected Imports

Leading to Improved Indian Products

2 Sectors / Rs. 0.6 cr p.a = Rs. 4 cr
14
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5. QUALITY MGT. SYSTEMS / TOOLS
( QMS / QTT )
4) Implement Quality Mgt Techniques in Clusters

400 Units (in Clusters) to be Studied for QM

Relevant QMS/QTT to be Implemented

100 Units / Rs. 2.5 cr p.a = Rs. 10 cr
5) QM Awareness Programmes among MSMEs

400 Programmes in 4 years in Selected Areas

To Address Both Middle Mgt. & Shop Floor Levels

100 nos. p.a @ Rs. 1.25 lakh x 4 years = Rs. 5 cr
15
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6. LEAN MANUFACTURING

Lean Manufacturing (LM) is Production of Goods

Using less of all Inputs

SMEs either Don’t Know or Can’t Afford

This, Flagship Scheme of NMCP

Total Project cost – Rs. 230.00 cr.



GOI Share – Rs. 185.20 cr.

Rs. 224 cr. for 700 Mini Clusters (80% by GoI)

Rs. 2 cr. Admn./Monitoring

Rs. 4 cr. For Awareness/ Publicity
2008-09 BE – Rs. 20.00 cr.
EFC Cleared. Discussion with FM (?)
16
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6. LEAN MANUFACTURING

LMP to Cover 7,000 to 10,000 units in 4 years

Thru Mini Clusters @ 10 units per LM Consultant

100 to 300 LM Consultants required p.a. – Expensive

Govt : Private Funding = 80 : 20 (1st Yr), 0 : 100 (2nd Yr)

Rs. 32 lakh per Mini Cluster / Rs. 24 lakh per Consultant

Industry Associations to Execute, thru IAs & SPVs

Lead / Locate / Appoint / Pay / Monitor

IAs to be paid Rs. 8 lakh for Project Management Services

Industry to Drive & Create Capacities in Private Sector

EFC has ordered Review/Stop Work after 1st 100 !
17
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OTHER NMCP COMPONENTS:
 UNDER FORMULATION
7) TECH UP
 Scheme
under Total Redrafting
8) MARKETING
 Scheme
under Total Redrafting
9) ICT
 Scheme
under Total Redrafting
10) DESIGN
 Adviser
appointed. Guidelines by June 08
18
THANK YOU
19
OTHER SCHEMES
RAJIV GANDHI UDYAMI MITRA YOJANA

RGUMY to Handhold New Entrepreneurs

Support thru Lead Agencies – Udyami Mitras, i.e:
-- To Link Entrepreneurs, Projects, Banks & Admn.

UMs to assist Project Selection & Preparation

Pursue with Banks and Government Agencies

UMs to Receive Payment Per Case – Rs. 6000 & above

Support to 1.5 lakh entrepreneurs

Awareness & UM Identification are Essential.
20
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7. TECHNOLOGY UPGRADATION




Total Project cost – Rs. 93.50 cr.

GOI Share – Rs. 76.54 cr.

2008-09 BE – Rs. 10.00 cr.
Revised EFC Finalised. Under Submission
Focuses on Energy and Certification
6 Activities Proposed:
1) Renewable Energy : 5 Demonstration Projects in 4 yrs
 UNIDO / GEF Programme on Bio Fuel / Gas
 R&D Centre of Excellence at IISC Bangalore
 Training / Website / Propagation
 Rs. 1 cr. p.a = Rs. 4 cr.
 GEF Funding – Rs. 0.8 cr.
21
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7. TECHNOLOGY UPGRADATION
2) Implement Energy Audit Advice in 1200 units

Based on PCRA’s Audit of 2000 units (own cost)

Rs. 9 cr. (on 60% Government Aid) p.a. = Rs. 36 cr.
3) Assessment Study & SPV for CDM

To set up 4 SPVs p.a

Rs. 0.15 cr. per SPV = Rs. 2.4 cr. for 16 SPVs
4) Awareness Progs. For CER/CDM (Carbon Credits)

150 Progs. p.a @ Rs. 33,000 each = Rs. 2 cr. (4 yrs)

May revise CDM Intervention, if successful
22
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7. TECHNOLOGY UPGRADATION
5) Voluntary Product Cert. Reimbursement (Rs. 47.10 cr.)

800 Units/Licences (ISI Mark) p.a

Rs. 1 lakh (max.) per Unit/Licence = Rs. 27.52 cr. (4 yrs)

325 Units/Licences for Int’l Cert. for CE, ANSI etc. p.a

Rs. 2 lakh (max.) per Unit/Licence = Rs. 19.58 cr. (4 yrs)
6) Continuous Appraisal & Miscellaneous (Rs. 2.0 cr.)

For Mid-Course Changes

Outsourcing / Hiring Experts etc.
23
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8. MARKET ASSISTANCE & TECH. UPGRADATION
(MARKETING)


To Survive competition, Indian MSMEs need

Modern Packaging & Marketing Techniques

To Technically Study Competitors’ Products and
Counter-respond
NER Requires integration in Mainstream Markets

Wide Ranging exposure to be Encouraged
Total Project cost – Rs. 53.00 cr.
 GOI Share – Rs. 26.50 cr.
 2008-09 BE – Rs. 4.00 cr.
 Preparing Revised EFC by 15th April

24
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8. MARKET ASSISTANCE & TECH. UPGRADATION
(MARKETING)

Activities Proposed (Still under Preparation):
1) Tech. Upgradation in Packaging with IIP, NID, IITs

Exposure to Best Technologies

Cluster-based Studies for Status/Actions

Unit-based Interventions on Cost Sharing
2) Study Competition for Self-improvement

Exposure to Competitors’ Products in India &
Abroad

Detailed study of specific ‘Defeats’, with reasons

Enterprise-led Improvement Programmes
25
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8. MARKET ASSISTANCE & TECH. UPGRADATION
(MARKETING)
3) Modern Management Techniques Adoption

Basically Skill Development in Latest Technologies
4) NER Exposure and Marketing Assistance

Connect NER Entrepreneurs to Mainstream

Through Subsidised Exposure Visits to India’s best

Participation in National Fairs, Study Missions and
Workshops
26
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9. PROMOTING ICT IN SMEs






Low ICT Usage by SMEs – A Cause of Concern
Most ICT Cos. Focusing on SMEs – but Slow Progress
Intensive Discussions with Stakeholders of Major ICT Cos.
Final EFC Draft being Finalised – Costing being Worked Out
Total Project cost – Rs. 100.00 cr.
 GOI Share – Rs. 60.00 cr.
 2008-09 BE – Rs. 10.00 cr.
Original Project Cost – Rs. 207.00 cr.



GOI Share – Rs. 104.00 cr.
2008-09 BE – Rs. 10 cr.
Proposal for PPP / Cost-sharing on Most Activities
27
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9. PROMOTING ICT IN SMEs

Activities under Consideration:
No.
1
Activities
25 Clusters
a. Diagnostic Studies
b. E-Readiness Infrastructure (25 locations)
c. Web Portals (25)
d. HRD
e. Training
Sub Total (Rs. 68.50 cr)
GoI
Cluster
2.00
13.00
15.00
7.00
5.00
0.00
4.50
10.00
3.00
9.00
42.00
26.50
2
Association Websites (@ Rs. 8L per Assn for 40 Assn.)
8.40
6.00
3
E-Catalogue Building & Hosting (10,000 units)
3.50
3.50
4
SME Networking Portals (PPP)
6.00
4.00
5
Project Office
0.10
0.00
60.00
40.00
TOTAL (Rs. 100 cr.)
 Hosted Models & Rolling Fund – Under Consideration
28
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10. DESIGN CLINICS / SUPPORT

Designs make SME Products Competitive

Ballpoint Pens, Tooth-brushes, etc.

Design Input Essential for Survival of MSMEs

Cluster-based Design “Clinics” Proposed


Suggestions / Specific Packages Required

Need to Work Out Cost and Sharing Formula
Previous Proposal mainly Governmental

One National Centre with NID

6 Regional Centres and 225 Design Clinics
29
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10. DESIGN CLINICS / SUPPORT


Total Project cost – Rs. 50.00 cr.

GOI Share – Rs. 41.00 cr.

2008-09 BE – Rs. 5.00 cr.
Scheme held up due to lack of Specificities


Discussions with FICCI, CII etc. on
DPR has been Insisted.  Bids called.

Thereafter, EFC and CCEA to follow

3 months target
30