MSME SCHEME
Objective
MSME Scheme Objective
The Design Scheme aims to bridge the gap between the Indian manufacturing sector and design expertise by creating a common platform. It provides cost-effective solutions for real-time design challenges, fosters product development, and enhances value addition in existing and new products. The scheme empowers MSMEs to achieve their design objectives with support from experienced designers.
MSME Scheme
Financial Assistance Under Design Component
1. Design Projects : -
MSMEs can seek financial support for engaging design consultants and developing prototypes/products.
Funding Contribution
- Micro Enterprises: 75% of project cost up to ₹40 Lakh.
- Small & Medium Enterprises: 60% of project cost up to ₹40 Lakh.
Funds are disbursed in three stages
Stage 1: Strategy & Concept – 40%
Stage 2: Detailed Design – 30% Stage 3: Completion & Final Report – 30%
Simplified Government Tenders
Holding a Startup India Certificate eliminates the requirement to pay earnest money deposits (EMD) and removes the need to demonstrate turnover or experience when bidding for government contracts. This provides a significant advantage, granting startups full relaxation on these criteria and prioritizing them in government tender processes
Student Design Projects
Open to students of AICTE/UGC-accredited institutions to assist MSMEs in achieving design capabilities.
Funding Contribution
75% of project cost up to ₹2.5 Lakh.
Funding is released in two stages
Stage 1: Application Approval – 50%
Stage 2: Completion & Final Report – 50%
Completion deadline is one year, with penalties for project dropout.
Benefits of the Design Scheme
- Encourages design-driven innovation.
- Supports the creation of high-value products.
- Enhances MSME competitiveness and market readiness.
- Provides financial assistance for design consultancy and prototype development.
- Fosters industry-academia collaboration through student projects.
Assessment Criteria
1. Integration of design into business processes.
2. Potential for commercialization, value addition, and market competitiveness.
3. Innovation, energy efficiency, and environmental impact.
4. Contribution to cost competitiveness, quality improvement, and safety enhancement.
5. Measurable positive outcomes in revenue or profitability.