MSME Competitive (LEAN) Scheme

MAR 13

Preliminary   > Economic Development   >   Indian Economy and Issues   >   Government Schemes

Why in news?

  • Recently, Ministry of MSMEs launched the MSME Competitive (LEAN) Scheme

What is Lean Manufacturing?

  • Lean Manufacturing or Lean Production, known simply 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 hence should be eliminated.

About the scheme:

  • The Scheme is a business initiative to reduce "waste" in manufacturing.
  • It provides for building awareness of lean manufacturing practices in MSME clusters as well as cost sharing of consultant’s fees with MSME units who opt for such interventions.
  • Under the scheme, MSMEs will implement LEAN manufacturing tools like 5S, Kaizen, KANBAN, Visual workplace, Poka Yoka etc under the guidance of trained and competent LEAN Consultants to attain LEAN levels like Basic, Intermediate and Advanced.
  • Nodal Agency: National Productivity Council (NPC)


  • To support MSMEs, the central government will contribute 90% of implementation cost for handholding and consultancy fees.
  • There will be an additional contribution of 5% for the MSMEs which are part of SFURTI clusters, owned by women/SC/ST and located in NER.
  • In addition to the above, there will be an additional contribution of 5% for MSMEs registering through Industry Associations/Overall Equipment Manufacturing (OEM) organizations after completing all levels.


  • The Scheme is open to Micro, Small or Medium as per the definition of the MSME Act. (The Micro, Small and Medium Enterprises Development Act, 2006.)
  • The units are required to form a Mini Cluster of 10 or so units.


With reference to ‘MSME Competitive (LEAN) Scheme’, consider the following statements:

1. It will implemented under NITI Aayog

2. Central government and state government equally shares the cost of the scheme

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2