Transcript SMALL SCALE INDUSTRIES INDIAN SCENARIO
Micro, Small & Medium Enterprises (MSME)
NATIONAL MANUFACTURING COMPETITIVESS PROGRAMME
Jawhar Sircar
Additional Secretary & Development Commissioner Ministry of Micro, Small & Medium Enterprises Government of India 04 April 2008
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NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME (NMCP)
Formulation of NMCP announced in 2005-06 Budget
It is to support MSMEs and :
Ensure MSME Sector Grows at a Healthy Rate
Draft ‘National Strategy for Manufacturing’
10 Schemes drawn up under NMCP at Rs. 973 crore
Implementation of Schemes to be in PPP Mode
Programme deals with Firm-Level Competitiveness, addressing issues of Competitiveness against Global Challenges
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NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME - COMPONENTS
Full Name of the Scheme
Marketing Support/Assistance to MSMEs
Support for Entrepreneurial and Managerial Dev
Enabling Manufacturing Sector to be competitive thru Quality Mgt. Standard & Quality Tech. Tools
National Campaign for Investment in Intellectual Property
National Programme on Application on Lean Mnf.
Mini Tool Rooms proposed to be set up by Min. of MSME
Promotion of ICT in Indian Manufacturing Sector
Technology & Quality Upgradation Support
Design Clinic Scheme for design expertise to Mnf. sector
Marketing Assistance/SMEs and Technology Upgradation Activities - Ministry of SSI in co-operation with TIFAC/CSIR Short Name BAR CODE INCUBATORS QMS/QTT IPR LEAN MTR ICT TECH UP DESIGN MARKETING
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NMCP – New Activities
(Over next 4 years) No 1 2 3 4 5 6 7 8 9 10 Name of the Component BAR CODE INCUBATORS QMS / QTT IPR LEAN MTR ICT Opt. I * Opt. II TECH UP DESIGN MARKETING TOTAL 4 years Total Project Cost 1.50
79.45
50.00
55.00
230.00
350.00
207.00
100.00
93.50
50.00
53.00
1062.45
GOI Share 1.50
66.50
40.00
50.00
185.20
135.00
104.00
60.00
76.54
41.00
26.50
682.24
Rs. Crore 2008-09 GOI Share (BE) 0.20
8.00
7.00
8.00
20.00
20.00
10.00
10.00
10.00
5.00
4.00
92.20
* Option I is kept on hold with TPC Rs. 1080.25 cr, GOI Share Rs. 789.10 cr and BE Rs. 92.20 cr.
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STATUS OF NMCP SCHEMES
S. No.
i Name of Scheme (Cost of Scheme / Rs Cr.) Bar Coding (1. 5) ii iii iv v Incubators (79.45) QMS / QTT (50) IPR (55) Lean (280.80) vi vii viii ix x MTR (210) ICT (100) TECH UP (93.50) Design (50) C Watch (53) Total EFC Clearance Operational from 01/6/07
RE 2007- 08 0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
01.0
Rs. in Crore BE 2008 - 09 0.20
8.00
7.00
8.00
20.00
20.00
10.00
10.00
5.00
4.00
92.20
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1. BAR CODE
Barcodes are computerised parallel bars/spaces affixed to products, representing details (size, price, colour, etc.) that are digitally scanned Total Project cost – Rs. 1.50 cr
GOI Share – Rs. 1.50 cr 2008-09 BE – Rs. 0.20 cr All Approvals Obtained. Scheme under Implementation
2007-08 – 39 units assisted / Rs. 8 lakh Of Rs. 150 lakh, and Publicity Rs. 33.75 lakh for Sensitization Progs.
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1. BAR CODE
Existing MDA Scheme modified to popularize Bar Coding
Bar Coding an effective Tool to improve marketability
Reimbursement allowed :
One Time Registration Fee
75% of Annual Fee for 1 st 3 years (Bar Code Certificate)
1400 SMEs to be Benefitted during 11th FY Plan
Need to Ramp-up Scheme in the Context of Retail Revolution / Exports
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2. INCUBATORS (E & MD)
Object :
Assist Incubation of Innovative Ideas
Encourage Ideas to Become SMEs Total Project cost – Rs. 79.45 cr
GOI Share – Rs. 66.50 cr
2008-09 BE – Rs. 8.00 cr FM’s Approval Awaited
Requests for Proposals (RFP) Drafted
Contacting Started
Rs. 80 cr Project for 100 Business Incubators (BIs) 1 / 2
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2. INCUBATORS (E & MD)
100 BIs to be Located in R&D Institutes @ 25 p.a
Govt. Grant (Max. 85%) = Rs. 4 to 8 lakhs per Idea
Each BI to Assist 10 Ideas / Units
R&D Institutions and BIs to Suggest & Nurture
Can also be Dovetailed with other Schemes
MSME / SIDBI to Tie Up ‘Successes’ with VC / Angel Funds
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3. QUALITY MGT. SYSTEMS / TOOLS ( QMS / QTT )
MSME’s ISO Reimbursement Scheme Successful
QMS: ISO-22000 (Food), ISO-18000 (Health) etc.
QTT: Introduce proven Tools like 6-Sigma, 5-S, Kaizen, TPM, TQM etc.
Total Project cost – Rs. 50.00 cr
GOI Share – Rs. 40.00 cr
2008-09 BE – Rs. 7.00 cr
EFC has Cleared. File with Minister for Approval 1 / 3
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3. QUALITY MGT. SYSTEMS / TOOLS ( QMS / QTT )
5 Activities to Further Propagate Quality Mgt: 1) Compulsory Courses in ITIs / Polytechnics
QCI/NPC to prepare Course Curricula
1800 ITIs / Rs. 4.25 cr p.a = Rs. 17 cr 2) Assist International Study Missions
For Detailed Study of Best QM Institutions
2 missions / Rs. 1 cr p.a = Rs. 4 cr 3) Special Programmes for Threatened Products
Detailed Analysis of Selected Imports
Leading to Improved Indian Products
2 Sectors / Rs. 0.6 cr p.a = Rs. 4 cr
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3. QUALITY MGT. SYSTEMS / TOOLS ( QMS / QTT )
4) Implement Quality Mgt Techniques in Clusters
400 Units (in Clusters) to be Studied for QM
Relevant QMS/QTT to be implemented
100 Units / Rs. 2.5 cr p.a = Rs. 10 cr 5) QM Awareness Programmes among MSMEs
400 Programmes in 4 years in Selected Areas
2 Levels of QM Awareness, i.e. Middle Mgt. & Shop Floor
100 nos. p.a @ Rs. 1.25 lakh x 4 years = Rs. 5 cr 3 / 3
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4. IPR CAMPAIGN
IPR Tools
Trade Secret
Patents
Indl. Design
Copyrights
G.I.
Trademark Most MSMEs unaware of IPR Benefits / Norms Total Project cost – Rs. 55.00 cr.
GOI Share – Rs. 50.00 cr.
2008-09 BE – Rs. 8.00 cr.
EFC has Cleared. Details Thrashed with Stakeholders
Guidelines under Submission to Minister
7 Focussed MSME Programmes will be on : 1) 150 Awareness & Sensitization Programmes
Rs. 1 lakh per Programme, by Assn etc. = Rs. 1.5 cr.
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4. IPR CAMPAIGN
2) 30 Pilot Studies with Associations and Clusters
Rs. 2.5 lakh per study for Diagnosis / Actions = Rs.
0.75 cr 3) 50 Interactive Seminars / Workshops
To Discuss Study Reports and Implementation
@ Rs. 2 lakh = Rs. 1 cr.
4) Short / Long Term Training of IPR Cadre for MSMEs
50 ST (2-3 weeks) and 10 LT (6 months)
@ Rs. 6 lakh (ST) and Rs. 45 lakh (LT) = Rs. 7.5 cr.
5) 40 IP Facilitation Centres by SPV on PPP
For Handholding SMEs in IPR, on Low Fees
@ Rs. 65 lakh = Rs. 26 cr.
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4. IPR CAMPAIGN
6) Financial Assistance for Patents and GIs (Rs. 10 cr.)
Patent @ Rs. 25,000 for Domestic, Rs. 2 lakh for Int’l
GI Regn.
– Rs. 1 lakh per case 7) Activities with International Agencies (Rs. 2 cr.)
Best Practices, Capacity Building, Exchanges
25 nos. Domestic @ Rs. 5 lakh / 10 Int’l @ Rs. 7.5 lakh 8) Miscellaneous and Contingency (Rs. 1.25 cr)
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5. LEAN MANUFACTURING
Introduced by Toyota, successful for Large & Medium Lean Manufacturing (LM) is Production of Goods using less of all Inputs compared to Traditional Mass Production SMEs either Ignorant or Deterred by High Costs This, Flagship Scheme of NMCP Total Project cost – Rs. 230.00 cr.
GOI Share – Rs. 185.20 cr.
Rs. 224 cr. for 700 Mini Clusters (80% by GoI)
Rs. 2 cr. Admn./Monitoring
Rs. 4 cr. For Awareness/ Publicity
2008-09 BE – Rs. 20.00 cr.
EFC is Cleared. Cabinet Note for FM’s Approval
QCI Identifying Consultants / Target Groups
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5. LEAN MANUFACTURING
LMP to Cover 7,000 to 10,000 units in 4 years Thru Mini Clusters @ 10 units per LM Consultant 100 to 300 LM Consultants required p.a.
– Expensive Govt : Private Funding -- 80 : 20 (1st Yr), 0 : 100 (2nd Yr) Rs. 32 lakh per Mini Cluster
Rs. 24 lakh per Consultant Industry Associations to Execute, thru IAs & SPVs
Lead / Locate / Appoint / Pay / Monitor IAs to be paid Rs. 8 lakh for Project Management Services Industry to Drive & Create Capacities in Private Sector EFC has ordered Review/Stop Work after 1 st 100 !
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6. MINI TOOL ROOMS ON PPP MODE
10 Major Tool Rooms set up - German, Dutch, etc.
They are essential for MSMEs for Tools & Industrial Trng.
Tooling & Training Needs of MSMEs rising rapidly
As Govt. Funding is Limited, PPP is Emphasised Total Project cost – Rs. 210.00 cr.
GOI Share – Rs. 135.00 cr.
2008-09 BE – Rs. 20.00 cr.
EFC and FM have Cleared. CCEA Note with CAB SECT ILFS appointed Transactional Advisor
To work out PPP Model Details
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6. MINI TOOL ROOMS ON PPP MODE
MTR cost may range from Rs. 2 cr. to Rs. 25 cr.
Govt’s VGF @ 40% maximum Expected Govt. Funding = Rs. 135 cr.
Total Cost of Projects : Rs. 350 cr. in 4 years To be Managed by Private Partners only Local Industry to gain from Services / Skills Traditional Centre-State Option also open
GoI - Rs. 9 cr.
and State - 6 cr.
Another Option
GoI – Rs. 9 cr. and State + Pvt. (Rs. 6 cr.) 2 / 2
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7. PROMOTING ICT IN SMEs
Low ICT Usage by SMEs – A Cause of Concern Most ICT Cos. Focusing on SMEs – but Slow Progress Intensive Discussions with Stakeholders of Major ICT Cos.
Final EFC Draft being Finalised – Costing being Worked Out Total Project cost – Rs. 100.00 cr.
GOI Share – Rs. 60.00 cr.
2008-09 BE – Rs. 10.00 cr.
Original Project Cost – Rs. 207.00 cr.
GOI Share – Rs. 104.00 cr.
2008-09 BE – Rs. 10 cr.
Proposal for PPP / Cost-sharing on Most Activities
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7. PROMOTING ICT IN SMEs
Activities under Consideration: No.
1 2 3
Activities 25 Clusters
a. Diagnostic Studies b. E-Readiness Infrastructure (25 locations) c. Web Portals (25) d. HRD e. Training
Sub Total (Rs. 68.50 cr) Association Websites (@ Rs. 8L per Assn for 40 Assn.)
4 5
E-Catalogue Building & Hosting (10,000 units) SME Networking Portals (PPP) Project Office TOTAL (Rs. 100 cr.) GoI
2.00
13.00
15.00
7.00
5.00
42.00
8.40
3.50
6.00
0.10
60.00
Hosted Models & Rolling Fund – Under Consideration Cluster
0.00
4.50
10.00
3.00
9.00
26.50
6.00
3.50
4.00
0.00
40.00
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8. TECHNOLOGY UPGRADATION
Total Project cost – Rs. 93.50 cr.
GOI Share – Rs. 76.54 cr.
2008-09 BE – Rs. 10.00 cr.
Revised EFC Finalised. Under Submission Focuses on Energy and Certification 6 Activities Proposed: 1) Renewable Energy : 5 Demonstration Projects in 4 yrs
UNIDO / GEF Programme on Bio Fuel / Gas
R&D Centre of Excellence at IISC Bangalore
Training / Website / Propagation
Rs. 1 cr. p.a = Rs. 4 cr.
GEF Funding – Rs. 0.8 cr.
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8. TECHNOLOGY UPGRADATION
2) Implement Energy Audit Advice in 1200 units
Based on PCRA’s Audit of 2000 units (own cost)
Rs. 9 cr. (on 60% Government Aid) p.a. = Rs. 36 cr.
3) Assessment Study & SPV for CDM
To set up 4 SPVs p.a
Rs. 0.15 cr. per SPV = Rs. 2.4 cr. for 16 SPVs 4) Awareness Progs. For CER/CDM (Carbon Credits)
150 Progs. p.a @ Rs. 33,000 each = Rs. 2 cr. (4 yrs)
May revise CDM Intervention, if successful 2 / 3
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8. TECHNOLOGY UPGRADATION
5) Voluntary Product Cert. Reimbursement (Rs. 47.10 cr.)
800 Units/Licences (ISI Mark) p.a
Rs. 1 lakh (max.) per Unit/Licence = Rs. 27.52 cr. (4 yrs)
325 Units/Licences for Int’l Cert. for CE, ANSI etc. p.a
Rs. 2 lakh (max.) per Unit/Licence = Rs. 19.58 cr. (4 yrs) 6) Continuous Appraisal & Miscellaneous (Rs. 2.0 cr.)
For Mid-Course Changes
Outsourcing / Hiring Experts etc.
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9. DESIGN CLINICS / SUPPORT
Designs make SME Products Competitive
Ballpoint Pens, Tooth-brushes, etc.
Design Input Essential for Survival of MSMEs Cluster-based Design “Clinics” Proposed
Suggestions / Specific Packages Required
Need to Work Out Cost and Sharing Formula
Previous Proposal mainly Governmental
One National Centre with NID
6 Regional Centres and 225 Design Clinics 1 / 2
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9. DESIGN CLINICS / SUPPORT
Total Project cost – Rs. 50.00 cr.
GOI Share – Rs. 41.00 cr.
2008-09 BE – Rs. 5.00 cr.
Scheme held up due to lack of Specificities
Discussions with FICCI, CII etc. on DPR has been Insisted.
Bids called.
Thereafter, EFC and CCEA to follow
3 months target 2 / 2
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1 / 3 10. MARKET ASSISTANCE & TECH. UPGRADATION (MARKETING)
To Survive competition, Indian MSMEs need
Modern Packaging & Marketing Techniques To Technically Study Counter-respond Competitors’ Products and NER Requires integration in Mainstream Markets
Wide Ranging exposure to be Encouraged Total Project cost – Rs. 53.00 cr.
GOI Share – Rs. 26.50 cr.
2008-09 BE – Rs. 4.00 cr.
Preparing Revised EFC by 15th April
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2 / 3 10. MARKET ASSISTANCE & TECH. UPGRADATION (MARKETING)
Activities Proposed (Still under Preparation): 1) Tech. Upgradation in Packaging with IIP, NID, IITs
Exposure to Best Technologies
Cluster-based Studies for Status/Actions
Unit-based Interventions on Cost Sharing 2) Study Competition for Self-improvement
Exposure to Abroad Competitors’ Products in India &
Detailed study of specific ‘Defeats’, with reasons
Enterprise-led Improvement Programmes
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3 / 3 10. MARKET ASSISTANCE & TECH. UPGRADATION (MARKETING) 3) Modern Management Techniques Adoption
Basically Skill Development in Latest Technologies 4) NER Exposure and Marketing Assistance
Connect NER Entrepreneurs to Mainstream
Through Subsidised Exposure Visits to India’s best
Participation in National Fairs, Study Missions and Workshops
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THANK YOU
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