Design Clinic Scheme For Msmes

To encourage the MSME sector,

Digital MSME scheme was launched with Information and Communication Technology (ICT) tools in their business and production process to widen the business platform. Also, to bring the MSME sector and design expertise on a common platform and to provide expert advice and solutions on design problems, the Ministry of Micro, Small and Medium Enterprises has implemented Design Scheme for the Financial Year (FY) 2019-20 as a component of CLCS-TUS programme.

Design Scheme for MSMEs

As a component of

CLCS-TUS, Ministry of Micro, Small and Medium Enterprises has implemented Design Scheme for the Financial Year (FY) 2019-20 to support the comfortable manufacturing process, for sustainability and to deliver aesthetic appeal and reliability.

Goal of the Scheme

The goal of this scheme is to support MSME sectors to switch over to original design manufacturing from original equipment manufacturing as the role of design in business adds more value to the products.

Objective of the Scheme

Increase the awareness of the value of design and establish design learning in the MSME
Increase the competitiveness of local products and services through design.
Bring the industrial design fraternity closer to the MSME Sector
Develop an institutional base for the industry’s design requirement
To create a sustainable design ecosystem for the MSME sector through continuous learning and skill development

Salient Features of the Scheme

Applicability of project funding is to an individual MSME or a group of MSMEs coming together.
A Design Company/ Academic Institutions will visit the unit and scrutinize all designs relevant fields & will suggest next steps to be taken.
Project Proposal to be prepared and to be submitted to Design Clinic Centre for consideration.
Mobilization and co-ordination workshop for MSME officials.
Seminar / Workshops (including need assessment survey).
Promotional Activities such as Orientation programme for stake holders, Study on Global Practices & Design Clinic Programme of other countries and National Level Workshop, etc.
Implemented through National Institute of Design (DIPP Institution).

Components of the Scheme

Design scheme has two divisions: (i) Design Awareness and (ii) Design Projects

Design Awareness Design awareness will be promoted by the following methods:

Design Awareness Programme (Seminars)
Design Workshops (Survey)
Orientation Programme

GOI has allotted funds for Design awareness and they are as follows:

S. No.	Title	Funds allotted
1	Awareness Programme	Rs.70,000/programme
2	Workshops (need assessment survey) for up to 5 days	Rs.5 lakh (75% GOI funding)
3	Nationals level workshops (for one day duration)	Rs.5 lakh
4	Orientation programme for stakeholders(for one day duration)	Rs.2 lakh
5	Training of implementing agency officials (Mobilisation & Coordination workshop for MSME officials)(for one day duration)	Upto Rs.10.00 lakhs
6	Study of Global Best Practices and Design Programme/fairs/exhibitions of Other Countries	Upto Rs.50.00 lakhs/per visit

Design Projects Design projects are promoted for MSMEs, MSEs and for students to develop new design strategies or projects to develop design related products. For MSMEs and MSEs Design projects support MSMEs and MSEs to develop new design strategies through design interventions and consultancy. The project offers financial support to the MSME and MSE sector for implementation and innovation. A suitable mechanism, containing 3 stages has been adopted for reimbursement of GOI funding for engagement of design consultant for design intervention. The GOI will monitor the process of the projects for release of funds. The funds allotted for the projects should be traceable and verifiable. The stages are:

Stage	Process	Percent
1	Strategy & Concept	40%
2	Detail Design	30%
3	Successful Implementation and completion report	30%

Financial Assistance for Design Projects GoI provides financial assistance for the product range of Rs.15 lakh to Rs.40 lakh for the following sectors

S. No.	Sector	Percentage of Funding
1	MSME	75% contribution by GoI
2	MSE	60% contribution by GoI

For Student Design Project Funding GoI provides funds for students’ project regarding new design strategies or projects to develop design related products. The project should be collaborated with an MSME sector and under the supervision of parent Design Institution. NMIU/IAs will monitor the process of the projects for release of funds. The funds will be reimbursed in the following stages:

Stage	Process	Percent
1	Application approval	25%
2	Mid Stage (about 50% period completion)	25%
3	Final Report Submission	50%

Financial Assistance for Design Projects GoI provides financial assistance for expenses incurred for the project up to 75% of Rs.1.25 lakh. 25% of admissible cost shall be contributed by the MSME associated with the project. The admissible cost includes:

Student designer’s stipend (wherever applicable),
Conveyance related to the project,
Documentation and
Model making

Eligibility Criteria for Student Design Project Funding

Final year in a full-time course as a UG or PG.
The courses must be recognized from institutions under the design scheme.
The project should be less than one year.
The MSME associated with the project may be in a profitable status for 3 years of its operations.

Implementing Agencies (IAs)

National Institute of Design (NID),
Ahmedabad & Indian Institute of Science (IISc),
Bengaluru will be continued as implementing agencies and more implementing agencies like the Indian Institute of Technology (IIT),
National Institute of Technology (NIT),
Tool Rooms etc. may be roped on a need basis.

Eligibility criteria for MSMEs

All MSMEs as per MSME Act 2006
The Industrial designer, academic institution, design company, academic and the applicant MSME have to be companies established in India under the Indian Laws with on‐going business
MSMEs included as per executive orders issued by the office of AS&DC (MSME).
Approval of PMAC and NMIU

Application Procedure Applications can be submitted in the link /MyMsme/Reg/COM_DCAppForm.aspx. There are 4 parts in the application as per below:

Part-I -- Udyog Aadhar, PAN related information
Part-II -- Scheme related information (Details of MSME unit, Details of Scheme, etc.)
Part-III -- Documents related (Details of Principal Applicant, MSME details, etc.)
Part-IV -- Details of Co-Applicant (Design Firm, Details of Design, etc.)

To know more about CLCS-TUS registration and scheme,

click here.

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Frequently Asked Questions

Common questions about Design Clinic Scheme for MSMEs.

The Design Clinic Scheme for MSMEs is a component of the CLCS-TUS programme launched by the Ministry of Micro, Small and Medium Enterprises. It aims to support MSMEs in adopting original design manufacturing, increase the competitiveness of their products and services through design, and create a sustainable design ecosystem for the MSME sector.

The key objectives of the Design Clinic Scheme are to increase awareness about the value of design in the MSME sector, bring the industrial design fraternity closer to MSMEs, develop an institutional base for the industry's design requirements, and promote continuous learning and skill development in design for MSMEs.

The Design Clinic Scheme has two divisions: (i) Design Awareness and (ii) Design Projects. Design Awareness focuses on promoting design awareness through seminars, workshops, and orientation programs, while Design Projects provide financial assistance to MSMEs for design interventions and consultancy.

The Government of India provides financial assistance ranging from 60% to 75% of the project cost for Design Projects undertaken by MSEs and MSMEs, respectively. The project cost can range from Rs. 15 lakh to Rs. 40 lakh, depending on the sector.

The scheme provides financial assistance of up to 75% of Rs. 1.25 lakh for Student Design Projects undertaken in collaboration with an MSME and under the supervision of a parent Design Institution.

To be eligible for Student Design Project funding, students must be in their final year of a full-time UG or PG course recognized under the Design Clinic Scheme, and the project duration should be less than one year. The associated MSME should have been in profitable operation for at least three years.

The National Institute of Design (NID), Ahmedabad, and the Indian Institute of Science (IISc), Bengaluru, are the designated Implementing Agencies for the Design Clinic Scheme. Other institutions like IITs, NITs, and Tool Rooms may be added as Implementing Agencies based on the need.

MSMEs can apply for the Design Clinic Scheme through the online application portal MyMsme/Reg/COM_DCAppForm.aspx. The application process involves providing details about the MSME, the scheme, the principal applicant, the design firm, and other relevant information.

Applicants need to provide documents such as Udyog Aadhar, PAN details, MSME unit details, details of the principal applicant, details of the design firm or co-applicant, and other relevant documents as per the application requirements.

Applications for the Design Clinic Scheme are evaluated and approved by the Project Monitoring and Advisory Committee (PMAC) and the National Monitoring and Implementation Unit (NMIU) after meeting the eligibility criteria and other requirements outlined in the scheme guidelines.