3. Technology Upgradation and Quality Certification

3.1. Financial Support to MSMEs in ZED Certification Scheme

Related Scheme Financial Support to MSMEs in ZED Certification Scheme
Description The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement and supporting the Make in India initiative.

The ZED Certification scheme is an extensive drive to create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED and support them. After ZED assessment, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes etc.

The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification so as to:

Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.

Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.

Enable MSMEs for manufacturing of quality products.

Encourage MSMEs to constantly upgrade their quality standards in products and processes.

Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.

Support ‘Make in India’ campaign.

Develop professionals in the area of ZED manufacturing and certification.
Nature of assistance Assessment & Rating/Re-rating/Gap analysis/Hand holding

The subsidy provided by the Government of India for Micro, Small & Medium Enterprises will be 80%, 60% and 50% respectively. There shall be an additional subsidy of 5% for MSMEs owned SC/ST/women and MSMEs located in NER and J&K for assessment & rating/re-rating/gap analysis/hand holding:

a) Assessment/Rating by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 10,000/-& Rs 80,000/- per enterprise respectively for Desktop Assessment and ZED rating Complete Assessment).

b) Additional rating for Defence angle i.e. Defence ZED by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40,000/- per enterprise.)

c) Gap Analysis, Handholding, Consultancy for improving rating of MSMEs by Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI, MSME-TC including its autonomous bodies, BEE etc. (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Consultancy charges: average 70% of Fee) (Hand holding charges Rs. 1.9 Lakh per enterprise whereas in case of MSMEs owned by SC/ST entrepreneurs additional support of Rs 10,000/- will be provided.)

d) Re-Assessment/Re-Rating by Credit Rating Agencies & Other Agencies (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40000/- per enterprise.).
Who can apply? All manufacturing Micro, Small and Medium enterprises (MSME) having Udyog Adhar Memorandum can apply.
How to apply? The ZED Certification Scheme is a 4 steps process:

Step 1 : Register free on the online portal of ZED (www.zed.org.in), using the following link:

http://assessment.zed.org.in/Assessment/Assessment_BeforeLogin.aspx, using the valid (Indian) mobile number and email address.

Step 2 : Online self-assessment on the ZED parameters followed by Desktop Assessment.

Step 3 : Site-assessment, if selected on the basis of Desktop Assessment.

Step 4 : Consultancy: Rated MSMEs will have the option to avail the service of an authorized ZED consultant for gap-analysis and handholding.
Whom to contact Registration and Online self-assessment: Mr. Akash Agrawal Site-assessment and Consultancy: Mr. Sameer Parashar Address: IMA Building, 3rd Floor, I P Estate, Ring Road, New Delhi - 110002, India
Email: zed[at]qcin[dot]org
Phone no: 011-23708371
The guidelines of ZED scheme is available on www.dcmsme.gov.in/schemes/nmcp_scm.htm
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3.2. A Scheme for promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

Related Scheme A Scheme for promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
Description The main objectives of the scheme are to:

(i) Create new jobs and reduce unemployment (ii) Promote entrepreneurship culture in India (iii) Boost Grassroots economic development at district level (iv) Facilitate innovative business solution for un-met social needs, and (v) Promote innovation to further strengthen the competitiveness of the MSME sector.
Nature of assistance NSIC/KVIC or Coir Board or any GoI or State Government agency to set up 80 Livelihood Business Incubators for the period 2014 to 2016. The objectives are: Promotion of Innovation, Entrepreneurship and Agro-Industry organisation of the M/o MSME, and one-time grant of 100% of cost of Plant & Machinery other than the land and infrastructure, or an amount up to Rs 100 lakhs, whichever is less is to be provided In case of incubation centres to be set up under PPP mode with NSIC, KVIC or Coir Board or any other Institution/agency of GoI/State Government, one- time grant of 50% of cost of Plant & Machinery, other than the land and infrastructure, or Rs 50.00 lakhs, whichever is less is to be provided.

Assistance towards the training cost of incubates will be met out of the ATI scheme of the Ministry as far as possible for both centres. Total budget plan is Rs 62.50 cr for 2014-2016.
Who can apply? The Scheme aims to implement the Incubation and Commercialisation of Business Ideas Programme through technical / research institutes, including those in the field of agro based industry. These would be designated as Knowledge Partners and would incubate new/existing technologies for their commercialisation.

The scheme also provides funds for the incubator/incubation and creates necessary synergy between this scheme and the Livelihood Business Incubators/Technology Business Incubators and Incubation schemes of MSME / NSIC / KVIC / Coir Board / Other Ministries/Departments as well as Private incubators.
How to apply? Application can be sent to Aspire Scheme Steering Committee of the Ministry of MSME. The Scheme Steering Committee will be responsible for overall policy, coordination and management support. The Council will be chaired by Secretary, Ministry of MSME.
Whom to contact Deputy Secretary (ARI), M/o MSME
Ph: 011-23062745,
Email: samar[dot]nanda[at]nic[dot]in
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3.3. National Manufacturing Competitiveness Programme (NMCP)

3.3.1. Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)

Related Scheme Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
Description CLCSS provides 15% subsidy for additional investment up to ₹ 1 cr for technology upgradation by MSEs. Technology upgradation would ordinarily mean induction of state-of-the-art or near state-of-the- art technology. In the varying mosaic of technology covering more than 7,500 products in the Indian small scale sector,

List of technologies is available at http://www.dcmsme.gov.in

Units looking to replace existing equipment/technology with the same equipment/technology will not qualify for subsidy under this scheme. Similarly, units upgrading with used machinery would not be eligible under this scheme.
Nature of assistance The revised scheme aims at facilitating technology upgradation by providing 15% up front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them for induction of well established and improved technologies in specified sub-sectors/products approved under the scheme.
Who can apply? Any MSE unit
How to apply? Candidates meeting the eligibility criteria may approach 12 nodal banks / agencies. These are SIDBI, NABARD, SBI, BoB, PNB, BOI, SBBJ, TIIC, Andhra Bank, Corporation Bank, Canara Bank and Indian Bank. Web link:
www.dcmsme.gov.in/schemes/credit_link_scheme.htm
Whom to contact Director (CLCSS), O/o DC, MSME
Ph: 011-23062241,
Email: anshumohanti[at]gmail[dot]com
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3.3.2. ISO 9000/ISO 14001 Certification Reimbursement

Related Scheme ISO 9000/ISO 14001 Certification Reimbursement
Description In order to enhance the competitive strength of SMEs, the scheme provides incentives to those SMEs/ancillary undertakings that have acquired ISO 9000/ISO 14001/HACCP certification. The scheme is enlarged so as to include reimbursement of expenses in the acquisition of ISO 14001 certification.
Nature of assistance The scheme envisages reimbursement of charges incurred for acquisition of ISO-9000/ISO-14001/HACCP certification to the extent of 75% of expenditure, subject to a maximum of ₹75,000 in each case.
Who can apply? The scheme is applicable to MSEs/ancillary/SSSB units that have already acquired ISO-9000/ISO-14001/ HACCP certification.
How to apply? MSEs with their registration no. are required to submit their application, duly completed, to their local Director, MSME-DI, addresses given in the website: http://www.dcmsme.gov.in.

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Whom to contact JDC, (ISO), O/o DC, MSME
Ph: 011-23062680
Email : bisariya[dot]sanjay[at]nic[dot]in
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3.3.3. Marketing Support/Assistance to MSMEs (Bar Code)

Related Scheme Marketing Support/Assistance to MSMEs (Bar Code)
Description Under this scheme the Ministry conducts seminars and reimburses registration fees for bar coding in order to encourage MSEs to use bar-codes.
Nature of assistance Reimbursement of registration fee (one time and recurring for 3 years) for bar coding. Financial assistance for reimbursement of 75% of one-time registration fee (Under MSE-MDA) and 75% of annual recurring fee for first three years (Under NMCP) paid by MSEs to GS1 India for the use of bar coding.
Who can apply? The scheme applies only to MSEs with and registration with GS1 India for use of barcode.
How to apply? After getting registration for use of barcode for products, (http://www.gs1india.org)

The application form along with formats for supporting documents may be collected from the Director, MSME-DI, or download from http://www.dcmsme.gov.in/

Fill the prescribed application form for claiming reimbursement on bar code;

Submit the filled-in application form with required documents to the office of MSME-DI.

The filled-in along with formats with required documents is to be submitted to the office of MSME-DI.

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Whom to contact ADC,O/o DC, MSME
Ph : 011-23062396
Email : calsen[at]nic[dot]in
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3.3.4. Lean Manufacturing Competitiveness for MSMEs

Related Scheme Lean Manufacturing Competitiveness for MSMEs
Description The objective of the scheme is to enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) techniques.
Nature of assistance Financial assistance is provided for implementation of lean manufacturing techniques, primarily the cost of lean manufacturing consultant (80% by GoI and 20% by beneficiaries). Lean manufacturing consultants (LMCs) will raise bills for services provided to Special Purpose Vehicle (SPV). SPV will, in turn, pay the first installment of 20% to the LMC and will obtain reimbursement from the NMIU. Thereafter, Ministry of MSME will transfer funds to the NMIU. SPV payments to LMC will be on a milestone basis in 5 tranches, each of 20% of the amount fixed.
Who can apply? The scheme is open to all manufacturing MSEs. The units are required to form MC, ideally of 10 units each with a minimum 6, by signing among themselves a Memorandum of Understanding anMoU to participate in the scheme.
How to apply? A group of SMEs can apply for the scheme. Either a recognised SPV can apply on its own, or a mini cluster can be formed by a group of 10 or more such units.

The SPV can apply to the National Monitoring and Implementing Unit (National Productivity Council for the Scheme) in the given format.

www.dcmsme.gov.in/schemes/lean-manufact.htm
Whom to contact JDC (LEAN), O/o DC, MSME
Ph: 011-23062394
Email : bisariya[dot]sanjay[at]nic[dot]in
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3.3.5. Design Clinic for Design Expertise to MSMEs

Related Scheme Design Clinic for Design Expertise to MSMEs
Description The scheme is for increasing competitiveness of MSMEs through adoption of design and its learning.
Nature of assistance Funding support of (1) ₹60,000 per seminar and 75% subject to a maximum of ₹3.75 lakhs per workshop, (2) To facilitate MSMEs to develop new Design strategies and or design related products and services through project interventions and consultancy.

(Government of India contribution @ 75% for micro, 60% for SMEs for the project range ₹15 lakh to ₹40 lakh.)
Who can apply? Expert agencies (Industry Associations, Technical Institutions or other appropriate bodies), for conducting seminars and workshops, MSMEs or groups of MSMEs, Academic Institutes/ design companies/ design consultants, etc., applying as coapplicants along with a designated MSME.
How to apply? Expert agencies can directly apply to design clinic centres expressing intent to conduct workshops and seminars.

MSMEs can apply alone or along with a design company or a design consultant/academic institute for design projects by submission of a proposal to the Design Clinic Centre or through the internet by making an online application.

A p p l i c a n t s c a n a p p l y o n l i n e a t http://www.designclinicsmsme.org/or download the form from http://www.dcmsme.gov.in/schemes.

Apply online at: www.dcmsme.gov.in/schemes/DesignClinic.htm
Whom to contact JDC (Design Clinic),O/o DC, MSME
Ph : 011-23062394
Email : bisariya[dot]sanjay[at]nic[dot]in
Download Scheme Guidelines

3.3.6. Technology and Quality Upgradation Support to MSMEs

Related Scheme Technology and Quality Upgradation Support to MSMEs
Description The scheme advocates the use of energy efficient technologies (EETs) in manufacturing units so as to reduce the cost of production and adopt clean development mechanism.
Nature of assistance Capacity building of MSME clusters for energy efficiency/clean development and related technologies. Funding support of up to 75% for awareness programmes, subject to maximum of Rs 75,000 per programme;

Implementation of energy efficient technologies in MSME units 75% of actual expenditure for cluster level energy audit and preparation of model DPR;

Setting up of Carbon Credit Aggregation Centres. 50% of actual expenditure subject to maximum Rs 1.5 lakh per DPR towards preparation of subsequent detailed project reports for individual MSMEs on EET projects;

Encouraging MSMEs to acquire product certification / licenses from National / International bodies. 75% of the actual expenditure, subject to a maximum Rs 15;

25% of the project cost as subsidy by Government of India, balance amount to be funded through loan from SIDBI/banks/ financial Institutions. MSMEs are required to make the minimum contribution as required by the funding agency;

75% subsidy towards licensing of products to national/ international standards; ceiling Rs 1.5 lakh for obtaining product licensing/marking to National standards and Rs 2 lakhs for International standards.
Who can apply? Expert organisations like PCRA, BEE, TERI, IITs, NITs, etc.
State Govt. agencies like MITCON, GEDA, etc.
Cluster/industry based associations of MSMEs
NGOs and Technical Institutions.
How to apply? Obtain product certification from national standardisation bodies (like BIS and BEE) or international product certifications (CE, UL, ANSI, etc.)

Applicant applies in the specified format (given in annexure-IV of scheme guidelines) along with required documents for re-imbursement of fees, forwarding it, to MSME-DI concerned.

www.dcmsme.gov.in/schemes/TEQUPDetail.htm
Whom to contact JDC (TEQUP), O/o DC, MSME
Ph : 011-23062394
Email : bisariya[dot]sanjay[at]nic[dot]in
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3.3.7. Entrepreneurial and Managerial Development of SMEs through Incubators

Related Scheme Entrepreneurial and Managerial Development of SMEs through Incubators
Description The objective of the scheme scheme is to provide early stage funding to nurture innovative business ideas (new indigenous technology, processes, products, procedures, etc.) that could be commercialised in a year. The scheme provides financial assistance for setting up business incubators.
Nature of assistance Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary from Rs 4 to 8 lakh for each incubatee/idea, subject to overall ceiling of Rs 62.5 lakh for each BI.

a) Upgradation of infrastructure Rs 2.50 lakh

b) Orientation/training Rs 1.28 lakh

c) Administrative expenses Rs 0.22 lakh

Total assistance per BI Rs 66.50 lakh
Who can apply? Any individual or MSME with innovative ideas ready for commercialisation can apply to the host institution (e.g., IITs, NITs, technical colleges, research institutes, etc.) in order to obtain fund support. See the list of host institutions at following web address:

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Any technical institution (as given in the EoI) that wants to become a host institution can apply to the office of the Development Commissioner-MSME or their nearest MSME-DI for funding support.
How to apply? Application can be made by the technical institution desirous of becoming the host institution, once a Request for Proposal (RFP)/ Expression of Interest (EoI) is released.

Any individual or MSME can apply directly to their nearest host institution. A list of host institutions is given on the website: http://www.dcmsme.gov.in/schemes/Institut ions_Detail.pdf

Website: www.dcmsme.gov.in/schemes/supportforemdti.html
Whom to contact JDC, O/o DC, MSME
Ph: 011-23062394
Email : bisariya[dot]sanjay[at]nic[dot]in
Download Scheme Guidelines

3.3.8. Enabling Manufacturing Sector to be Competitive through QMS&QTT

Related Scheme Enabling Manufacturing Sector to be Competitive through QMS&QTT
Description The scheme endeavours to sensitize and encourage MSEs to understand and adopt latest Quality Management Standards (QMS) and Quality Technology Tools (QTT).
Nature of assistance Funding support for introduction of appropriate course modules in technical institutions through expert organisations.

Funding support up to Rs 79,000/- per programmefor conducting QMS/QTT awareness campaign for MSEs through expert organisations.

Funding support up to Rs 2.5 lakh per unitfor implementation of QMS andQTT in selected MSMEs through expert organisations.

Funding support for conducting C-watch study for product having threat from foreign goods.
Who can apply? Expert organisations like Quality Council of India (QCI), National Recruitment Board for Personnel and Training, Consultancy Development Corporation, National Productivity Council, Standardisation, Testing & Quality Certification (STQC, a Society under the Ministry of IT), IIQM (Indian Institute of Quality Management), Industry Associations that have taken active interest in QMS/QTT, Technical Institutions, Engineering Colleges, Tool Rooms and similar bodies and MSEs can apply for assistance under this scheme.
How to apply? MSEs or clusters may contact Office of the DC- MSME. The DC office will finalise the MSME clusters for conducting the Awareness Programme on Quality Management Standards and Quality Technology Tools (QMS/QTT). Web link: www.dcmsme.gov.in/schemes/QmsQtt.htm
Whom to contact JDC (QMS/QTT), O/o DC, MSME
Ph: 011-23062394
Email : bisariya[dot]sanjay[at]nic[dot]in
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3.3.9. Building Awareness on Intellectual Property Rights (IPR)

Related Scheme Building Awareness on Intellectual Property Rights (IPR)
Description The purpose of the scheme is to enhance awareness among the MSMEs about Intellectual Property Rights, to take measures for protecting their ideas and business strategies. Effective utilisation of IPR tools by MSMEs would also assist them in technology upgradation and enhancement of their competitiveness.
Nature of assistance Conducting awareness/sensitization programmes on IPR (Applicants in this case are MSME organisations and expert agencies) GoI assistance of Rs 1 lakh per awareness programme

Conducting pilot studies for selected clusters/groups of industries (Applicants in this case are MSME organisations, competent agencies and expert agencies). GoI assistance of Rs 2.5 lakh per pilot study.

Funding support for conducting interactive seminars / workshops (Applicants in this case are MSME organisations and expert agencies)

Funding support for conducting specialised training on IPR (Applicants – Expert agencies)

Funding support in the form of Grant on Patent/GI Registration (Applicants in this case are MSME units and MSME organisations)

Funding support for setting up IP Facilitation
Who can apply? Registered MSME units, association, consultancy firms, expert agencies etc.
How to apply? Application forms for each of the components are provided along with scheme guidelines at: www.dcmsme.gov.in/schemes/IPRDetail.html
Whom to contact JDC (IPR), O/o DC, MSME
Ph: 011-23062394
Email : bisariya[dot]sanjay[at]nic[dot]in
Download Scheme Guidelines