MSME Sustainable (ZED) Certification Scheme

• 30 Apr 2022

Why in News?

Ministry for Micro, Small and Medium Enterprises has launched the MSME (Micro, Small and Medium Enterprises) Sustainable (ZED-Zero Defect Zero Effect) Certification Scheme.

What is the Scheme?

• About:
  • This Scheme is an extensive drive to enable and facilitate MSMEs adopt ZED practices and motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions.
  • MSME Sustainable (ZED) Certification can be attained in Three Levels after registering and taking the ZED Pledge:
    • Certification Level 1: BRONZE
    • Certification Level 2: SILVER
    • Certification Level 3: GOLD
  • After taking the ZED Pledge, the MSME can apply for any Certification Level if it feels that it can fulfil the requirements mentioned in each level.
  • The intent of taking a ZED Pledge is to take a “pre-commitment” or a solemn promise by MSMEs to uphold the values of Zero Defect Zero Effect in their practices and to urge them to move ahead on the journey of ZED.
• Subsidy:
  • Under the Scheme, MSMEs get subsidy as per the following structure, on the cost of ZED certification:
    • Micro Enterprises: 80%
    • Small Enterprises: 60%
    • Medium Enterprises: 50%
  • A provision of up to Rs. 5 lakhs (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 themselves of several 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.
• Components of the Scheme:
  • Industry Awareness Programmes/Workshop.
  • Training Programmes.
  • Assessment & Certification.
  • Handholding.
  • Benefits/Incentives.
  • PR campaign, Advertising & Brand Promotion
  • Digital Platform.
• Benefits:
  • Through the journey of ZED Certification, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc.

What is Zero Defect Zero Effect Scheme?

• About:
  • Launched in 2016 by the Ministry of MSME, the scheme is an integrated and comprehensive certification system.
  • The scheme accounts for productivity, quality, pollution mitigation, energy efficiency, financial status, human resource and technological depth including design and IPR (Intellectual Property Rights) in both products and processes.
  • Its mission is to develop and implement the ‘ZED’ culture in India based on the principles of Zero Defect & Zero Effect.
• Zero Defect:
  • The Zero-defect concept is focusing on the customer.
  • Zero non-conformance or non-compliance
  • Zero waste
• Zero Effect:
  • Zero air pollution, liquid discharge, solid waste
  • Zero wastage of natural resources
• Objective of the Scheme:
  • To develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
  • To promote adaptation of quality tools/systems and energy efficient manufacturing. Enable MSMEs for manufacturing of quality products.
  • To encourage MSMEs to constantly upgrade their quality standards in products and processes.
  • To develop professionals in the area of ZED manufacturing and certification.
  • To support the 'Make in India' campaign.

What are the Other Initiatives to Promote MSMEs Sector?

• 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
• CHAMPIONS portal

Source: PIB