MSME Champions Scheme

Scheme Introduction: A Brief Overview

Running a small business comes with many challenges. Many Micro, Small and Medium Enterprises (MSMEs) need better machines, improved production methods, good product quality and financial support to grow their businesses. To help them overcome these challenges, the Government of India introduced the MSME Champions Scheme. The scheme helps eligible businesses improve their products, reduce production costs, avoid wastage and use modern technology. It also provides financial assistance for activities such as quality certification, better manufacturing practices, product development and protection of patents and trademarks. Depending on the component, eligible businesses can receive up to 90% assistance under the LEAN Scheme, up to ₹5 lakh for ZED handholding and technology improvements, and other financial support under the MSME-Innovative Scheme.

The MSME Champions Scheme was created by bringing together six components of the earlier Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS). It was approved for five years, from 2021-22 to 2025-26. The scheme is implemented by the Ministry of Micro, Small and Medium Enterprises (MoMSME), Government of India, through the Office of the Development Commissioner (MSME) and other designated agencies.

The main aim of the scheme is to help Indian MSMEs become more productive and competitive. It encourages businesses to improve product quality, use resources carefully, adopt modern technology and introduce new ideas. These improvements can help businesses reduce expenses, increase production and compete better in the Indian and international markets.

The MSME Champions Scheme has three main components: MSME-Sustainable (ZED), MSME-Competitive (LEAN) and MSME-Innovative. Each component provides support for a different business need.

Under the MSME-Sustainable (ZED) Certification Scheme, manufacturing businesses are encouraged to make quality products while reducing their impact on the environment. Eligible MSMEs can obtain Bronze, Silver or Gold certification. The Government provides a subsidy of 80% for Micro, 60% for Small and 50% for Medium Enterprises. Eligible women-owned MSMEs can receive a 100% certification subsidy. Businesses can also get a one-time joining reward of ₹10,000 after taking the ZED Pledge, subject to the scheme conditions. After achieving Bronze certification, eligible businesses can receive up to ₹2 lakh for handholding and consultancy and up to ₹3 lakh for technology improvements.

The MSME-Competitive (LEAN) Scheme helps businesses improve the way they manufacture products. It teaches them how to reduce unnecessary work, save time, use materials properly and avoid production wastage. The scheme has three levels: Basic, Intermediate and Advanced. Basic-level implementation is free. For Intermediate and Advanced levels, the maximum eligible implementation costs are ₹1.20 lakh and ₹2.40 lakh, respectively, plus applicable taxes. The Government provides up to 90% financial assistance towards these costs, subject to the scheme rules.

The MSME-Innovative Scheme supports businesses and innovators who want to develop new products, improve existing designs or protect their ideas. It has three parts: Incubation, Design and Intellectual Property Rights (IPR). Under Incubation, approved Host Institutes can receive up to ₹15 lakh for each approved idea. Under Design, eligible Micro Enterprises can receive 75% of the approved project cost, while Small and Medium Enterprises can receive 60%, up to a maximum Government assistance of ₹40 lakh. The IPR component provides reimbursement of up to ₹5 lakh for foreign patents, ₹1 lakh for domestic patents, ₹2 lakh for Geographical Indication (GI) registration, ₹15,000 for design registration and ₹10,000 for trademark registration, subject to the applicable conditions.

The eligibility conditions depend on the component. The ZED and LEAN components mainly cover manufacturing businesses registered under Udyam. The Incubation component also allows eligible students, individuals and innovators to submit ideas through approved Host Institutes. The Design and IPR components have their own eligibility rules. Some components also offer additional financial benefits to eligible women-owned and SC/ST-owned businesses and enterprises in specified regions.

Applicants can use different online portals depending on the support they need. Manufacturing businesses interested in ZED certification can register through the ZED Portal. Businesses seeking help with improving their production processes can use the MSME LEAN Portal. For support related to new ideas, product design and intellectual property, applicants can refer to the MSME Innovative Portal.

If an MSME faces a business-related problem or needs guidance, it can also use the CHAMPIONS Portal of the Ministry of MSME. The portal helps businesses raise complaints and seek assistance with matters such as finance, marketing, technology, raw materials and other business needs.

Entrepreneurs can also explore other Government schemes that provide support for starting or growing a business. The Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) helps eligible small businesses obtain loans without providing collateral, subject to lending conditions. The Prime Minister's Employment Generation Programme (PMEGP) provides financial support for setting up eligible new micro-enterprises. Similarly, the PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) supports eligible small food-processing businesses.

Components of the MSME Champions Scheme

The MSME Champions Scheme has three main components. Each component focuses on a different area of business improvement, allowing eligible enterprises and innovators to receive support according to their requirements.

• MSME Sustainable (ZED) Certification Scheme

  This component promotes Zero Defect Zero Effect (ZED) practices among manufacturing MSMEs. It encourages businesses to improve product quality, reduce defects, use resources efficiently and adopt environment-friendly manufacturing methods. Enterprises can obtain Bronze, Silver or Gold certification and receive financial support for certification and eligible technology improvements.

• MSME Competitive (LEAN) Scheme

  This component helps MSMEs improve their production processes by adopting Lean Manufacturing techniques. It focuses on reducing wastage, controlling production costs, improving inventory management and increasing productivity. Support is provided through three levels: Basic, Intermediate and Advanced.

• MSME Innovative Scheme

  This component encourages new ideas, product development and innovation among MSMEs. It covers three areas: Incubation, Design and Intellectual Property Rights (IPR). Through these activities, eligible applicants can receive support for developing innovative ideas, improving product designs and protecting patents, trademarks and other intellectual property.

Scheme Benefits

The MSME Champions Scheme helps businesses improve product quality, reduce costs and make their operations more efficient. Through its three main components, eligible MSMEs can receive the following financial and technical support:

• Under the ZED component, Micro Enterprises receive an 80% subsidy on certification costs, Small Enterprises receive 60% and Medium Enterprises receive 50%. Eligible women-owned MSMEs can receive a 100% subsidy.
• Eligible MSMEs can get a one-time reward of ₹10,000 after taking the ZED Pledge. This amount can be used towards Bronze-level certification fees, subject to scheme conditions.
• After obtaining Bronze certification, eligible MSMEs can receive up to ₹5 lakh in additional support. This includes up to ₹2 lakh for guidance and consultancy and up to ₹3 lakh for technology upgrades.
• MSMEs can receive reimbursement of up to 75% of eligible testing and product certification costs, subject to a maximum of ₹50,000 and scheme conditions.
• Under the LEAN component, the Basic level is free for eligible MSMEs. The Government also covers 90% of the implementation cost for the Intermediate and Advanced levels.
• Eligible MSMEs can receive an additional 5% Government support under LEAN when they register through an Industry Association or Original Equipment Manufacturer (OEM) and complete all the required levels.
• Under the Incubation component, approved Host Institutes can receive up to ₹15 lakh for each approved idea to help develop new products, services or business solutions.
• Under the Design component, the Government provides assistance of up to 75% of the approved project cost for Micro Enterprises and 60% for Small and Medium Enterprises. The maximum assistance is ₹40 lakh per approved project.
• Under the IPR component, eligible applicants can receive reimbursement of up to ₹5 lakh for foreign patents, ₹1 lakh for domestic patents, ₹2 lakh for Geographical Indication (GI) registration, ₹15,000 for design registration and ₹10,000 for trademark registration.
• The scheme helps businesses reduce production waste, improve product quality, save energy and use raw materials and other resources more efficiently.
• MSMEs also receive guidance on adopting modern technology, improving business practices and making their products and services more competitive.
• Through the CHAMPIONS Portal, MSMEs can seek help with business-related problems and get guidance on matters such as finance, marketing, technology and raw materials.

Financial Assistance Under the Scheme

The amount of financial assistance under the MSME Champions Scheme depends on the component selected and the type of support required. The following table summarises the major financial benefits available under its three components.

Eligibility Requirements

The MSME Champions Scheme is designed to support eligible businesses, entrepreneurs and innovators in improving their products, production processes and business operations. However, the eligibility conditions are different for each component of the scheme.

• Micro, Small and Medium Enterprises (MSMEs) must have a valid Udyam Registration to access the applicable MSME Champions benefits.
• Under the ZED Certification component, only Udyam-registered manufacturing MSMEs are eligible to apply.
• Under the LEAN component, eligible Udyam-registered manufacturing MSMEs can apply for support to improve productivity and reduce production wastage. Common Facility Centres (CFCs) under SFURTI and MSE-CDP can also participate as per the scheme guidelines.
• Under the Incubation component, eligible individuals, students and innovators can submit innovative ideas through approved Host Institutes.
• Under the Design component, eligible Micro, Small and Medium Enterprises can apply for financial assistance for approved product design and development projects.
• Under the IPR component, eligible MSMEs can apply for reimbursement of expenses related to patent, trademark, design and Geographical Indication (GI) registration, subject to the prescribed conditions.
• Women-owned and SC/ST-owned MSMEs, as well as enterprises located in certain special regions, may receive additional financial benefits under applicable components.
• Applicants must fulfil the specific registration, documentation, project approval and other conditions prescribed for the component under which they are applying.

Required Documents

The documents required for the MSME Champions Scheme depend on the component under which an enterprise or applicant is applying. Applicants should keep the following basic and supporting documents ready before starting the online application:

• Udyam Registration Certificate of the enterprise.
• PAN card of the business or enterprise.
• Aadhaar details and mobile number of the authorised person for identity verification and OTP authentication.
• Business address, contact details and information about the manufacturing unit.
• Bank account details, wherever required for financial assistance or reimbursement.
• GST registration details, if applicable.
• Authorisation letter or details of the authorised representative, if someone else is applying on behalf of the enterprise.
• Product photographs, shop-floor photographs, product labels and other supporting evidence required for ZED certification.
• Production, quality and operational details required for assessment under the LEAN component.
• Project proposal, idea details and other supporting documents required for applications under the Incubation or Design components.
• Patent, trademark, design or Geographical Indication (GI) registration documents and proof of eligible expenses, wherever applying for IPR reimbursement.

Applicants should note that all documents may not be required for every component. The concerned portal may ask for additional documents depending on the type of assistance requested and the applicant's eligibility.

Steps to Apply

Applying for the MSME Champions Scheme is different for each of its components. Before starting, identify whether you need ZED certification, LEAN support, assistance for an innovative idea, product design support or IPR reimbursement. Keep your Udyam Registration details and registered mobile number ready wherever required.

1. How to Apply for ZED Certification

• Open the ZED Certification Portal of the Ministry of MSME.
• Choose the registration option for MSMEs and enter the required enterprise details, including your Udyam Registration information and registered mobile number.
• Complete the verification process and submit the ZED Pledge to express your commitment to adopting quality and environment-friendly manufacturing practices.
• After registration, follow the portal instructions to select the required certification level: Bronze, Silver or Gold.
• Complete the required assessment and certification formalities. The portal provides information about the applicable certification fee, subsidy and assessment process.
• After meeting the prescribed requirements, your enterprise can proceed towards receiving the relevant ZED certification.

2. How to Apply for the LEAN Scheme

• Go to the MSME LEAN Portal and select the option to register for the scheme.
• On the registration page, enter your Udyam Registration Number and the mobile number linked to your Udyam account.
• Verify your details using the OTP sent to your registered mobile number. The portal will automatically retrieve your enterprise information from the Udyam database.
• Enter the details of the MSME representative or LEAN coordinator who will handle the scheme-related communication.
• Select the implementing agency and provide the requested information about your association with an SFURTI cluster, Industry Association or Original Equipment Manufacturer (OEM), wherever applicable.
• Submit the registration form. Your LEAN ID and password will be sent to your registered email address after successful registration.
• Log in using the credentials received, read and accept the undertaking, and complete the LEAN Pledge to proceed with the programme.
• After registration, follow the portal instructions for the applicable LEAN level and implementation activities.

3. How to Apply Under the MSME-Innovative Scheme

The MSME-Innovative Scheme has three separate application routes. Choose the one that matches the type of support you need.

Incubation Component

• Visit the MSME Innovative Portal and check the Incubation section.
• Individuals, students and innovators should approach a recognised Host Institute (HI) or Business Incubator (BI) participating in the scheme.
• Submit your innovative idea and supporting details to the Host Institute for consideration.
• The Host Institute examines the submitted ideas and may select suitable proposals for submission through the scheme portal.
• Selected ideas are evaluated under the prescribed approval process. Financial assistance is provided through the approved Host Institute, subject to the scheme guidelines.

Design Component

• Open the MSME Innovative Design Portal and select the Design component.
• Read the eligibility conditions and application instructions before proceeding.
• Eligible MSMEs can submit their design project proposal online through the nominated Implementing Agency (IA).
• The Implementing Agency carries out an initial review and may ask for additional information or clarification about the proposed project.
• Suitable applications are recommended to the Project Monitoring and Advisory Committee (PMAC) for consideration and approval.
• Once approved, the project is carried out according to the prescribed conditions and financial assistance is released in stages after meeting the required milestones.

Intellectual Property Rights (IPR) Component

• Go to the MSME Innovative IPR Portal.
• Select the type of reimbursement you need, such as patent, Geographical Indication (GI), trademark or design registration.
• Choose the relevant application option and follow the instructions displayed on the portal.
• Provide your Udyam registration details and the required information about the intellectual property registration.
• Upload the prescribed registration documents, fee receipts and other supporting evidence required for reimbursement.
• Submit the application for verification. Reimbursement is subject to eligibility, document verification and approval under the scheme guidelines.

Applicants who need help with business-related problems or scheme-related grievances can also use the CHAMPIONS Portal of the Ministry of MSME. It provides a platform for submitting grievances and seeking guidance on matters such as finance, technology, marketing and other business challenges.

Difference Between the Three Components of the MSME Champions Scheme

The MSME Champions Scheme has three main components, each designed to address a different business need. The following table will help you understand their purpose and who can benefit from them.

Relevant Links

• Ministry of Micro, Small and Medium Enterprises – Official Website
• MSME Sustainable (ZED) Certification Portal
• MSME Competitive (LEAN) Scheme Portal
• MSME Innovative Scheme Portal
• CHAMPIONS Portal
• Udyam Registration Portal
• MSME Champions Scheme Guidelines

Contact Information

Ministry of Micro, Small and Medium Enterprises, Government of India

• Phone: 011-23061574 (CHAMPIONS Control Room)
• Email: [email protected]
• Grievance Cell Address: Additional Development Commissioner, Office of the Development Commissioner (MSME), Room No. 716, Nirman Bhawan, New Delhi – 110108.
• Grievance Cell Phone: 011-23061277