Lean Manufacturing Competitiveness Scheme (LMCS)

Various schemes from the DC-MSME were implemented during the 11th plan period including Lean Manufacturing Competitiveness Scheme (LMCS) to benefit the MSME sector. The scheme intends to apply lean manufacturing techniques to improve the manufacturing units of MSMEs. Consequently, this would aim to increase productivity.

In this attempt, the government will give financial assistance up to 80% of the project cost, while limiting it to the first year. Additionally, the scheme endeavours to help or cover 100 Mini clusters across the country. Attempting to reduce the waste in the scheme was approved on 08 July 2019.

Objectives of Lean Manufacturing Competitiveness Scheme

The main goal undertaken by Lean Manufacturing Competitiveness Scheme is to improve the manufacturing productivity of the MSME sector. Its achieved by increasing the competitiveness among the clusters. Further, productivity is enhanced by the application of lean industrial techniques, that is:

  1. Reducing waste
  2. Initiation of Innovative practices
  3. Increase the competitiveness
  4. Increase overall production
  5. Indoctrinating good organization systems
  6. Cultivating continuous improvement
  7. Inculcating lean techniques such as:
  • Total productivity management
  • 5S- Sort, set in order, Shine, Standardise, and Sustain
  • Visual content
  • Standard Operating Procedures (SOPs)
  • Just in time (JIT)
  • KANBAN system
  • Cellular Layout
  • Value Stream Mapping
  • Poka-Yoke/ Mistake mapping
  • Single Minutes Exchange of Dies
  • Kaizen blitz/ Rapid improvement process
Salient features of Lean Manufacturing Competitiveness Scheme
  1. Initially, the pilot phase of the scheme was implemented with 89 units. Out of which 59 Mini clusters have efficaciously completed project with an expense of Rs 16.17 crore.
  2. Following the report produced by the Quality Council of India, the scheme was upscaled in 2013 with an increase in project cost to Rs 240.94 crore.
  3. A three-level structure has been undertaken in the scheme
  • Mini cluster
  • National Monitoring and Implementing Unit
  • Screening and Steering Committee

4. Consultants with Special Purpose vehicles are available for 18 months. 20% of the cost of hiring an advisor is borne by SPVs while the rest is compensated via NMIUs.

5. Spreading awareness to create mini clusters comprising of 6-10 units.

Nature of Assistance 

MSME is eligible to avail of financial assistance of maximum Rs 36 lakhs per mini cluster. This would be for a period of 18 months. In that, the ratio borne by the Government and Units is 80:20 that is Rs 28.8 lakh by Government of India while the units contribute Rs 7.2 lakhs.


All registered Micro, Small, and Medium having UAM numbers are eligible to enrol under the scheme. Benefits entitled to enterprises involved in manufacturing activities. It is mandatory to form an association with SPV by the following means:

  1. Trust according to the Indian trust Act, 1882
  2. Incorporating private limited company according to the Indian Companies Act, 1956
  3. Society, under the Society Registration Act, 1860
  4. Entities approved by SSC
Application Process
  1. It is important to validate yourself with Udyog Aadhar number to start of the application process
  2. Mention the following scheme related details:
  • Company details
  • The lean manufacturing Technique that shall be applied
  • National monitoring and implementing Unit selected
  • SPV name
  • Act and the year
  • Finally, it is necessary to upload the necessary documents
Documents Required 
  • MoU (Annexure- 1)
  • Power of Attorney (Annexure- 2)
  • SPV registration/ DP6 resolution

A group of SMEs or a recognized SPV can apply under the scheme. Click here for registration format.

Apply to the office of DC, Ministry of MSME through MSMEDIs, TCs, Central Government or State Government and the institutions under the following. Grant of approval after completion of the registration process along with the submission of the requested documents.

Further Queries

The beneficiary may contact

  • Principal Director, MSME- TDC (PPDC), Foundry Nagar, Agra- 282006
  • MSME- Development Institutes under DC-MSME

Email- info@ppdcagra.com

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