Zero Defect Zero Effect: ZED certification scheme launched for MSMEs

Union Minister Narayan Rane on Thursday launched a sustainable certification scheme (ZED) to facilitate MSMEs to adopt 'Zero Defect Zero Effect' practices and become energy efficient while improving quality through increased compliance with manufacturing processes.

MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc. Through the ZED certification scheme, a part of the MSME Champions scheme.

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"The ZED certification scheme will be beneficial towards improving quality, increasing manufacturing output and profits and controlling the detrimental impact on the environment," said MSME Minister Rane at the launch.

R P Singh, Secretary General, Quality council of India highlighted that adoption of ZED certification by MSMEs will automatically lead to various types of compliances needed for MSME.

Phase 1 of the scheme launched on Thursday will focus largely on maximising inclusion of manufacturing MSMEs and taking them through the ZED journey.

The Phase 2 of the scheme will entail the inclusion of services sector MSMEs and also strive to integrate manufacturing and services sector MSMEs that are registered under a state government system but not on Udyam.

This phase will also make provisions to align ZED certification with the international certifications for its global acceptance.

The scheme comprises three certification levels including bronze, silver and gold. MSMEs can apply for any certification level but would need to comply with its requirements. The 20 parameters under the scheme are mapped with existing certifications wherever applicable.

The MSMEs will have to undertake a ZED pledge upon registration. MSMEs will get subsidy on the cost of ZED certification. The subsidy amount will be up to 80 per cent of the certification cost for micro enterprises, whereas for small and medium units it will be 60 per cent and 50 per cent respectively.

There will be an additional subsidy of 10 per cent for the MSMEs owned by Women/SC/ST Entrepreneurs. In addition to above, there will be an additional subsidy of 5 percent for MSMEs which are also a part of the SFURTI Or Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) of the Ministry. 

Further, a limited purpose joining reward of Rs 10,000 will be offered to each MSME once they take the ZED Pledge.

A provision of up to Rs 5 lakh per MSME will be made available for handholding and consultancy support for MSMEs under ZED Certification for assisting them to move towards Zero Defect Zero Effect solutions.

The MSMEs can also avail a number of other incentives offered for ZED Certification by States & UTs, Financial Institutions etc. And can also apply for free Certification under the MSME KAWACH (COVID-19 Support) initiative.