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State Mini Lean Manufacturing Competitiveness Scheme

Name of the scheme State Mini Lean Manufacturing Competitiveness Scheme
Ministry/Department Directorate of MSME, Haryana
Description The objective of the scheme is to enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) techniques by

  • Reducing waste
  • Increasing productivity
  • Introducing innovative practices for improving overall competitiveness
  • Inculcating good management systems
Nature of assistance
  • Under the State Mini Lean Manufacturing Competitiveness Scheme, the State Government shall provide financial assistance of up to 80% of the project cost, subject to a maximum of INR 2 lakh per unit.
  • The project cost would include the consultancy fee paid to Lean Management Consultant for implementation of lean techniques in the industry.
  • A minimum of 8 industrial units would be required to form a mini cluster under this scheme, there is no limit on maximum number of units.
Who can apply?
  • All the existing micro and small units located in the State, who have filed Haryana Udhyam Memorandum (HUM) shall be eligible under the scheme.
  • The assistance shall be available to clusters formulated during the period 26.02.2019 up-to 25/02/2024.

The eligible units must also comply with the following conditions:

  • The scheme is applicable for all MSE industries/sectors in the state of Haryana
  • The member units should be in commercial production
  • The unit should not have been placed in the restrictive list as notified by the State government from time to time
  • The unit must have CLU/NOC, as applicable
  • The member units should be in regular production at the time of disbursement and the financial assistance shall not be given to a closed unit
How to apply?
  1. The scheme will be implemented in mini clusters spread all over the state for all manufacturing sectors across MSMEs.
  2. The group of industries willing to participate in the scheme will submit a preliminary application as per format along with list of SPV members, to their respective DICs/MDOs.
  3. Physical verification of units will be carried out by DIC/MDO and recommendation letter along with application and verification report will be forwarded to Director General, Micro, Small and Medium Enterprise (MSME) by DIC/MDO for consideration of approval.
  4. Upon approval of the application, the interested units will be required to form an SPV (including signing of a MoU as per prescribed format) and open a project specific bank account.
  5. Subsequently the SPV will be required to sign a bi-party agreement (as per specified format) with the State Government. The SPV will submit the signed bi-party agreement along with other documents to the State Government.
  6. After acceptance of submitted documents, the department shall allow SPV to select Lean Manufacturing Consultant through cost competitive bidding process (The Lean Management Consultants empanelled with Quality Council of India and National Productivity Council of India, under the Lean Manufacturing Scheme of Government of India from time to time, shall only be engaged as consultants by SPVs.
  7. After engaging the consultant, the project will be completed in four stages, the first stage of the project would be conducting a diagnostic study and submission of Diagnostic Study Report (DSR) to the department.
  8. The DSR must be submitted within one month from the engagement of Lean Manufacturing Consultant and must cover the action plan for implementation of proposed solution over a span of 10 months from the approval of DSR.
  9. The entire action plan must be articulated to implement the lean manufacturing techniques in three stages with envisaged work plan divided accordingly and with milestones assigned for completion of each phase with tangible outcomes. The completion of each of the stages must be supported with a well-documented Milestone Based Report (MBR) to be submitted to the department after validation by the SPV.
  10. The first MBR shall be submitted after an interval of three months from the submission of DSR.
  11. The last stage of implementation must be supported by a detailed Milestone Based Report (MBR 3) highlighting the before and after scenarios in terms of shop floor layout improvements, quality improvements manufacturing cost and time reduction etc. achieved over the course of the project. The report must also contain assumptions made, detailed analysis of cost and time reductions and monetary savings envisaged thereof.
  12. The SPV shall develop a comprehensive and well documented case study to present productivity improvements and cost savings achieved through this scheme implementation. This case study must be submitted along with utilization statement of financial assistance at the final closure of the project.
  13. The project activities and interventions must be completed within a span of one year from the signing of agreement between State Government and SPV.
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