Design Clinic Scheme for MSMEs

Design Clinic Scheme for MSMEs

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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 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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