MSME Champions Scheme: ZED, Lean and MSME Innovative
Last updated: 2026-11-13 · MockMentor
The MSME Champions Scheme is a Central Sector Scheme formed by merging the six parts of the earlier Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS). It aims to modernise MSME processes, cut waste and make firms competitive nationally and globally.
In one line: quality, efficiency and innovation support that turns ordinary MSMEs into champions.
At a glance
| Item | Details |
|---|---|
| Ministry | MSME |
| Type | Central Sector Scheme |
| Three parts | MSME Sustainable (ZED), MSME Competitive (Lean), MSME Innovative |
| Eligibility | MSMEs registered on the Udyam portal |
The three parts
1. ZED (Zero Defect Zero Effect): certification at Bronze (₹10,000), Silver (₹40,000) and Gold (₹90,000), with subsidies of 80% (micro), 60% (small) and 50% (medium), plus 10% more for women, SC/ST and North-Eastern units.
2. Lean: consultants help MSMEs reduce waste; 90% of the cost is subsidised for intermediate and advanced levels.
3. MSME Innovative: up to ₹15 lakh an idea for incubation, 75% of design project cost (up to ₹40 lakh), grants for IPR facilitation centres, and Digital MSME support.
Possible exam questions
- Why do Indian MSMEs lag in productivity, and how can quality certification help?
- Discuss the role of innovation support in MSME competitiveness.
Complete notes in our courses: this page gives the essentials. The Super-Elite and Elite courses carry the full chapter with every update merged in, plus practice MCQs. Compare the courses.
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