Every MSME looks to enrich its manufacturing sector, get better raw material, develop a range of high quality products or add to existing products. However, they lack adequate funding for the same. This is where the Design Clinic Scheme comes into picture.
The Design Clinic Scheme is an initiative of the Ministry of Micro, Small and Medium Scale enterprises and India’s premier Design institute, the National Institute of Design. This exclusive design intervention scheme proposes to benefit industry clusters to create a dynamic platform that provides expert solutions to real-time design problems, and in that add value to existing products.
How does an MSME benefit from this scheme?
An MSME can benefit from this scheme in the following ways:
- Enhance Design awareness
- Expose beneficiaries to the critical nuances of process, operation, manufacturing and business aspects of Design
- Improve, evaluate and analyze design-related interventions
- Inculcate and innovate a futuristic approach towards Product Development (in the long term)
- Implement cost-effective solutions
- Identify opportunities for enhancing existing product value
- Offer competitive and breakthrough solutions for the MSME sectors
- Switch the production mode of an MSME from original equipment manufacturing to original design creation
MSMEs (manufacturing sector) further receive the following assistance under this scheme:
- Development and enhancement of portfolio of product/venture
- Value addition to existing products
- Financial assistance for the arrangement of seminars and workshops up to ₹60,000
- Financial assistance for making a report on design assessment survey up to 75% of admissible cost or ₹3,00,000 whichever is lower
- Funds released in following stages:
|Category||Funding support by the government||What you would have to pay|
|For a single MSME and a group of up to 3 MSMEs||Up to 60% of the total approved project cost or ₹9 lakh whichever is less||40% of the approved project cost in the form of cheque or bank pay-in-slip|
|For a group of 4 or more applicants||Up to 60% of the total approved project cost or ₹15 lakh whichever is less|
|For students final year undergoing full-time under graduate or post graduate program from institutions recognized by design clinic||Up to 75% of expenses incurred subject to maximum of ₹1.5 lakh for final year student||Remaining 25% to be contributed by the student.|
What is the eligibility criteria for this scheme?
The Eligibility Criteria for this scheme is as follows:
All MSMEs indulging in the inception of new ideas or ventures, requiring refining of the design or financial assistance are eligible to apply for this scheme.
MSMEs can request for a grant without a design company. In such cases, the Design Clinic Centre will suggest a list of possible design consultants for the MSME to choose from.
The entities eligible for applying are:
- MSMEs (Associations and Units)
- Indian Design Fraternity
- Consulting Firms
- Independent Designers
Other criteria include:
- The local designer / Design Company / academic institution and the local MSMEs in collaboration are eligible to apply for funding support as co-applicants.
- The local designer / design company / academic institution and the local MSMEs may apply, subject to the conditions mentioned below:
- They have to be bodies or companies established or incorporated in India under the Indian laws with on-going business.
- Must not be an associate, associated person, agent or employee of either of them before submission of the application.
- Must not be directors / shareholders / management team members of the applicant MSME.
- The beneficiary unit(s) must typically be micro, small or medium enterprises as per the definition in MSMED Act, 2006.
- Must be new to using design and preferably should not have used internal or external design expertise before.
- The designer that a unit employs in this scheme should be selected from a pool of qualified designers empaneled for this scheme.
Criteria for qualifying as the applicant MSME under Design Clinic:
What are the criteria for qualifying as the applicant MSME under Design Clinic?
The criteria for qualifying as the applicant MSME under Design Clinic are as follows:
- MSME should be a profitable entity in the last 3 years of its operations
- MSME must demonstrate either an export performance or potential to export
- PMAC can stipulate / relax criteria for this purpose
Criteria for qualifying as the co-applicant designer / design company under Design Clinic:
What are the criteria for qualifying as the co-applicant designer / Design Company under Design Clinic?
The criteria for qualifying as the co-applicant designer / Design Company under Design Clinic are as follows:
- The designer or the design company or acclaimed institute should have demonstrated expertise and qualification in the problem area that it seeks to solve for the applicant MSME
- On approval of the application, both the applicant design company / academic institution and the applicant MSME have to sign an agreement with the Design Clinic Centre to ensure that both parties are fully aware of the terms and conditions under which the grant will be offered
MSME can apply for the scheme along with a design consultancy or an academic institution which satisfies the given criteria:
- Each application will only cover one project.
- Applications not fulfilling required conditions will not be considered.
- No application fee will be charged
How can an MSME apply for this scheme?
MSMEs can apply for the Design Clinic scheme by applying online here.
Criteria for rejection of application:
What are the criteria for rejection of the application?
The criteria for rejection of application are as follows:
- A petition is presented or a proceeding is commenced or an order is made or a resolution is passed for the winding up or bankruptcy of the principal applicant or the co-applicant, or
- A false inaccurate or incomplete statement or representation is contained in the application or a promise or a proposal is made knowingly or recklessly that it will not be able to fulfill or deliver such promise or proposal; or * in the event of a claim alleging or the Government having grounds to believe that any thing(s) or material(s) to be designed or conceived or produced as part of the project deliverables infringe or will infringe any IPRs of any third party, or
- The principal applicant or the co-applicant is in default of its obligation(s) under other grant agreements with the Government whether or not in relation to the Design Clinic Scheme
Criteria for re-submission of application:
What are the criteria for re-submission of application?
The criteria for re-submission of application are as follows:
- A declined application may be resubmitted only if it has been revised substantially or if it has been able to produce additional information to address the comments made by the Assessment Panel in its earlier review
- The differences of the resubmitted application should be set out clearly vis-à-vis the previous one
- Any revised application will be treated as a new application
What are the documents required for this scheme?