The Ministry for Micro, Small and Medium Enterprises recently introduced the MSME (Micro, Small and Medium Enterprises) Sustainable (ZED-Zero Defect Zero Effect) Certification Scheme. Aimed at facilitating and motivating MSMEs to adopt ZED practices, the scheme incentivizes business owners to become MSME Champions.
The ZED Certification Scheme
The ZED Certification Scheme is an intensive drive aimed to enable and encourage the adoption of Zero Defect Zero Effect practices among MSMEs. The goal is to motivate and incentivize businesses for ZED Certification and encourage them on their journey towards becoming MSME Champions.
This Certification can be attained at three levels. These are Bronze, Silver, and Gold. After taking what is known as the ZED Pledge, a pre-commitment to uphold Zero Defect Zero Effect values, an MSME can apply for any certification level if it believes it can meet the requirements outlined for each level.
Subsidy Under the ZED Certification Scheme
Under the ZED Certification Scheme, MSMEs are eligible for subsidies based on their enterprise type. Micro Enterprises receive 80%, Small Enterprises get 60%, and Medium Enterprises are offered 50% subsidy.
In addition to these incentives, MSMEs can also access several other benefits associated with ZED Certification offered by States, UTs, and Financial Institutions. A provision of up to Rs. 5 lakhs per MSME is also available for handholding and consultancy support. Furthermore, MSMEs have the option to apply for free certification under the MSME KAWACH, an initiative aimed at COVID-19 support.
Components of the ZED Certification Scheme
The scheme encompasses a variety of components such as Industry Awareness Programs/Workshops, Training Programs, Assessment & Certification, Handholding, Benefits/Incentives, PR campaigns, Advertising & Brand Promotion, and a Digital Platform.
Through their journey towards ZED Certification, MSMEs are able to substantially cut down on waste, improve productivity, become more environmentally conscious, save energy, make optimal use of natural resources, and expand their markets among other things.
About Zero Defect Zero Effect Scheme
Launched in 2016 by the Ministry of MSME, the Zero Defect Zero Effect Scheme is a holistic certification system that considers factors such as productivity, quality, pollution mitigation, energy efficiency, financial status, human resources, technological depth including design, and IPR (Intellectual Property Rights) in both products and processes.
The mission of this scheme is to cultivate and implement a ZED culture throughout India. Its focus areas include achieving zero non-conformance or non-compliance, zero waste, zero air pollution, liquid discharge, solid waste, and zero wastage of natural resources.
Objectives of the Zero Defect Zero Effect Scheme
The primary objectives are to develop an Ecosystem for Zero Defect Manufacturing, promote the adaptation of quality tools/systems and energy-efficient manufacturing, enable MSMEs for manufacturing quality products, encourage MSMEs to upgrade their quality standards continually, develop professionals in ZED manufacturing and certification, and support the ‘Make in India’ campaign.
Other Initiatives to Promote MSME Sector
Aside from the MSME ZED Certification Scheme, other initiatives to promote the MSME sector include the Prime Minister’s Employment Generation Programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee Scheme for Micro and Small Enterprises, and the CHAMPIONS portal.
Last Modified: February 15, 2024