Scheme Objective
The objective of this component is to bring Indian manufacturing sector and Design expertise/ Design fraternity on to a common platform. It aims to provide expert advice and cost-effective solution on real time design problems for new product development, its continuous improvement and value addition in existing/new products.
The Design scheme will help MSMEs to avail advice on all aspects of design. It helps MSMEs realize and achieve their design-related objectives. This specialist advice will be provided by experienced designers for new product development as well as enhancing existing product portfolio.
Activities
Design Component
The Design scheme is divided in two major parts, viz., Design Projects and Design Awareness Programme.
i. Design Project – To facilitate MSMEs to develop new design strategies and or design related products through interventions and consultancy.
ii. Design Awareness Programme – The objective is to create general awareness and sensitization about the value and power of design for businesses through seminars, talks, workshops etc. The purpose of these activities is to sensitize MSMEs about the usage of design/innovation in various facets of their industry.
Eligibility Criteria
The beneficiary unit(s) must typically be a registered micro, small or medium enterprises as per the definition in MSMED and should have a valid UAM or Udyam Registration. The manufacturing MSMEs may be a profitable entity preferably in the last 1 year of its operations, PMAC can relax the criteria. The designer that a unit employs in this scheme should be qualified Industrial designers having a relevant experience in that field. Implementing agencies should verify all the relevant documents.
Financial Assistance
i. Design Project – To facilitate MSMEs to develop new design strategies and or design related products through interventions consultancy. MSMEs may submit their design projects to the nominated IAs. The IAs will carry out due diligence by setting up of a suitable Project Assessment Panel (PAP) for evaluating these projects and forward the recommended projects to MoMSME for approval of PMAC. Funds will be released after the approval of the Design Project by PMAC.
Financial assistance under this activity will be utilised for engagement of design consultants for design interventions and expenses pertaining to development of prototype/product. For the design projects approved for any MSME, 75% (Micro) and 60% (Small & Medium) of the total project cost will be contributed by GoI up to a maximum of Rs. 40 lakh and the remaining project cost will be borne by MSMEs and deposited to the IA. The total project cost will be provided as grant in 3 stages:
Stage 1 – Strategy & Concept- 40%
Stage 2 – Detail Design – 30%
Stage 3 – Successful Completion of the prototype/product and Final Report submission – 30%
The IA must ensure completion of the design project within a period of one year of the receipt of financial assistance and UC is submitted accordingly. In case, the MSME drops out of the project, penalty will be imposed as decided by the Project Monitoring and Advisory Committee (PMAC) of MoMSME.
ii. Student Design Project – This subcomponent can be availed by all the students of any institution accredited by AICTE/UGC. The proposed student design project must facilitate student participation into helping MSMEs achieve Design capabilities. Student participation can be achieved in two ways—MSME can approach students or Student can offer their services to MSMEs. MSME will submit the proposal for Student Design project to the Implementation Agency under the Design Scheme, through the portal of the scheme.
This component supports design work of bona-fide students by providing financial assistance up to Rs. 2.5 lakh. For the student design projects approved for any MSME,75% of the total project cost will be contributed by GoI up to a maximum of Rs. 2.5 lakh and the remaining project cost will be borne by MSME and deposited to the IA. This admissible cost would include student designer’s stipend (wherever applicable till the completion of the project), conveyance related to the project, documentation and expenses pertaining to development of prototype/model/product. The deliverables for the student project will be specified clearly by the IAs. The funding grant will be reimbursed in 2 stages, in the following manner:
Stage 1 – Application approval – 50%
Stage 2 – Successful Completion and Final Report Submission – 50%
The IA must ensure completion of the design project within a period of one year of the receipt of financial assistance and UC is submitted accordingly. In case, the MSME drops out of the project, penalty will be imposed as decided by the Project Monitoring and Advisory Committee (PMAC) of MoMSME.
How to Apply
A. Project Selection Procedure
The MSME would submit their application online on the portal through the IA. Upon receipt of the application, the IA will conduct a preliminary screening and may seek clarification or supplementary information from both the applicant design Consultant/company and applicant MSME.
After screening, IA will submit the application together with its recommendation to Project Monitoring & Advisory Committee (PMAC) for consideration. Project proposal should be discussed and reviewed in Project Assessment Panel (PAP) before presenting it to the PMAC.
The Project Assessment Panel (PAP) would comprise MSME-DI officials, professionals, industrialists, businessmen, designers, academics or other expert individuals. Its functions are to assess applications and project-costs, make recommendations, and monitor approved applications.
The applicant design Consultant/ company/academic institution and applicant MSME and its project team members may be required to attend assessment meetings to present their applications and answer questions.
Implementation Mechanism
A. Implementing Agencies (IAs):
The implementing agencies for the Scheme, presently, are:
Indian Institute of Science (IISc), Bengaluru, IITs (Kanpur, Indore, BHU, Roorkee, Ropar, Bhubaneshwar), NITs (Tiruchirappalli, Warangal, Silchar, Arunachal Pradesh, Jaipur, Allahabad, J&K, Bhopal, Nagpur, Calicut, Kurukshetra, Surathkal, Raipur).
These will be continued as implementing agencies and more implementing agencies such as Indian Institute of Technology (IIT), National Institute of Technology (NIT), Reputed Industrial Design Institutes, Tool Rooms etc., may be included.
B. Assessment Criteria
In considering an application, due consideration, inter-alia, will be given to the following factors, wherever applicable:
- to what extent the project can help integrate design into business process;
- to what extent the project can help transform design activity into tradable deliverables that manifests exploitation and deployment in the form of intellectual property, which may comprise patent, copyright, know-how or industrial design;
- to what extent the project can add value to the products concerned and increase their competitiveness;
- to what extent the project can help commercialisation of new products and finding pathways to market;
- to what extent the project can contribute towards cost competitiveness, energy efficiency, environmental impact, process/product efficiency, quality enhancement, waste reduction, material optimisation, safety improvements, ergonomic and aesthetic enhancement;
- to what extent the project is innovative and unique;
- to what extent the project can exhibit upscaling and replication potential;
- to what extent the project can contribute towards import substitution/export enhancement;
The overall assessment criteria would be based on the measurable positive difference that a design intervention will bring to the MSME, either in absolute revenues (indicating higher profits) or in percentage terms.