Design Project

Design projects are opportunities identified as Design interventions for betterment of individual unit’s performance in the area of products, process, operation, communication and multi functional activities. The MSME unit will need to submit the project proposal to Design Clinic Zonal office for final approval of design project. The MSMEs are free to register for design project as individual applicants or may collaborate with design experts (as Co-applicants)

 

Design projects FAQs

 

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Objectives of design projects in the scheme is to assist local enterprises with engaging external design expertise in the form of consultancy. The pojects supported should lead to new design strategies, and/or design-related products and services in the area of MSMEs through design intevention. The projects supported must be impactful and effectively develop the capabilities of the local enterprise.

The applicability of project funding is to an individual MSME or a group of MSME coming together. This means that if for common interest a certain number of MSME’s are to come together or MSME’s based in a certain industrial clusters are to come together they can apply for project funding under this scheme. For the sake of convenience in the further pages only MSME is mentioned. Wherever MSME is mentioned it is meant to include an individual company or a group of units.


Financial Assistance

 • The Design Clinic program shall support initial design work by reimbursing 60% of the designer fee up to a maximum limit of Rs. 9.00 Lakhs (Rs. Nine Lakh only) in case of a group upto three MSME applicants.

The Design Clinic program shall support initial design work by reimbursing 60% of the designer fee up to a maximum limit of Rs. 15 Lakhs (Rs. Fifteen Lakhs only) in case of a group of four or more MSME applicants.

Funding assistance up to Rs. 2 Lakhs (Rs 1.5 lakh as GoI) shall be available for final year student projects done for the MSME’s.

The unit must typically be an MSME, (a Micro, small or medium-sized enterprise) as per the definition prescribed in MSMED Act 2006. It must be new to using design and 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 empanelled for this program.

Design projects FAQs

What is the duration of each design project?
The duration of a design project will be less than one year. 

Why are design projects offered?
To help MSMEs to access design expertise in the form of consultancy. 

To facilitate MSMEs to develop new design strategies and/or design-related products and services through project interventions. 

To create visible impact and effectively develop the capabilities of the local enterprise. 

Who is eligible to apply?
The beneficiary unit(s) must typically be micro, small or medium enterprises as per the definition in the MSMED Act 2006. It 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 empanelled for this scheme.

The local designer, design company or academic institution and the local MSME in collaboration are eligible to apply for funding support as co-applicants.

The designer, design company or academic institution and the applicant MSME have to be bodies or companies established or incorporated in India under the Indian laws with ongoing business. 

The applicant design, design company or academic institution and the applicant MSME in a project application must not be an associate or associated person or agent or employee of the other before submission of the application. 

The project team members representing the designer, design company or academic institution must not be directors, shareholders or management team members of the applicant MSME. 

How to prepare a project budget?
The principal applicant is required to submit a budget proposed for the project, showing all expenditure and relevant documents, such as quotation, project brief, or contract. 

When preparing the project budget, the principal applicant is required to provide a brief description of the steps of work involved and the cost breakdown for each step. Other information such as duration of time and human power required (e.g. in human-days) will also be helpful. Unspecified cost items such as miscellaneous, sundry and contingency will not be accepted. 

Both, the applicant design company or academic institution and the applicant MSME should declare in the application whether any or both of them have sought or are seeking funding support for the project from other public funding sources. Double subvention will not be allowed

Who qualifies as a principal applicant? 
The MSME should be a profitable entity in the last three years of its operations. 

The MSME must demonstrate either an export performance or potential to export. 

PMAC can stipulate or relax criteria for this purpose. 

Who qualifies as a co-applicant?
The designer or design company or acclaimed institute should have demonstrated expertise and qualification in the problem area that it seeks to solve for the applicant MSME. 

It will be the responsibility of the designer, design company or academic institution to complete the project on time and according to the agreed scope. 
If the application is approved, the applicant designer, design company or academic institution will become the recipient of the grant, and both, the applicant design company or 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.

How much fund is available?
For professional design projects:

A MSME and a designer, design company or academic institution, which will provide that assistance, must jointly apply for funding support.

In case of an individual MSME or a group of not more than three MSME applicants, funding support will be given as a grant, up to a maximum of 60% of the total approved project cost or Rs. 9 lakh, whichever is less. In case of a group of four or more MSME applicants, funding support will be given as a grant, up to a maximum of 60% of the total approved project cost or Rs. 15 lakh, whichever is less.

The applicant MSME(s) in the project is required to contribute at least 40% of the approved project cost as a matching fund. The matching fund should be traceable and verifiable, such as in the form of cheque and/or bank pay-in slip. 

The funding grant will be reimbursed in four equal amounts in four stages – on submission of strategy, concept, detailed design and successful implementation and completion report. 

For students projects:

Most of the design education in the country being project-based, a portion of funding is earmarked to sponsor or support students’ design projects. Each of these projects will result in a detailed document including final design specifications and a model or prototype. 

The Design Clinic Scheme will support design work by reimbursing 75% of expenses incurred subject to maximum of Rs 1.5 lakh for final-year student projects done for MSMEs under the supervision of parent design institutions. MSME units’ contribution will be 25% of the admissible cost. 

The admissible cost (estimated to be Rs. 2 lakh) will include student designer’s stipend (wherever applicable), conveyance related to the project, documentation and model-making costs. 

Students in the final year undergoing full-time undergraduate, postgraduate or diploma programme from institutions recognised by the Design Clinic Centre are eligible to apply for this funding for their final-year dissertation projects. 

The student will have to apply in a specified format through his / her academic institution and with the consent of MSME where he / she will be doing the project. 

The deliverables for the student project will be specified clearly by the Design Clinic Centre. 

The funding grant will only be reimbursed to the students through the institute. 

The funding grant will be reimbursed in three stages, 25% on approval of at the mid stage and 50% on final report submission. 

What are the vetting procedures?
Upon receipt of an application, the Design Clinic Centre will conduct a preliminary screening and may seek clarification or supplementary information from both, the applicant design company or academic institution and applicant MSME. 

After screening, the Design Clinic Centre will submit the application together with its comments to an Assessment Panel for consideration. 

The Assessment Panel will comprise of officials, professionals, industrialists, businessmen, designers, academicians or other expert individuals. Its functions are to assess applications, make recommendations and monitor approved applications. 

The applicant design company or academic institution and applicant MSME and its project team members may have to attend assessment meetings to present their applications and answer questions.