MSME Sustainable (ZED) Certification Scheme

MSME Sustainable (ZED) Certification scheme is an extensive drive to
create awareness amongst MSME’s about Zero Defect Zero Effect (ZED)
practices and motivate them to incentivize for sustainable certification
scheme while also encouraging them to become MSME Champions.
The announcement of ‘Make in India’ and ‘Zero Defect Zero Effect’ puts
into perspective the Government’s intent to change the course of the
economy by focusing more on the processes of manufacturing as a
primary driver for sustained economic growth. In order to develop the
ecosystem to execute this idea, three essential components emerged as
the vehicle for this new transformation which are as follows :
1.) The ease of doing business in India.
2.) The confidence in the quality of the raw materials, various
components and services. MSME Sustainable (ZED) Certification scheme is an extensive drive to
create awareness amongst MSME’s about Zero Defect Zero Effect (ZED)
practices and motivate them to incentivize for sustainable certification
scheme while also encouraging them to become MSME Champions.
3.) Making available competent human resource to drive the change.
The ZED certification benefits is calibrated to make aware, assess &
certify, counsel and handhold the MSME’s and ensure that they rise up
the MSME ladder, thus enhancing their competitiveness in the global
marketplace and making them self-reliant. As a result of their further
growth and development, new career opportunities start emerging for
the country’s youth leading to a much broader scope for the future.
The ZED certification full form is ‘Zero Effect Zero Defect’. The ZED
scheme launched in 2016 with the aim of integrating quality
certification system for products, processes and outcomes in the MSME
sector. It focuses on the concepts of the ZED culture or Zero Effect and
Zero Defects in the MSME industries. It means removing processes that
have a defect or the removal of defective products. It also indicates the
improvement of quality, production, energy savings, manufacturing
efficiency, mitigation of pollution, HR and financial efficiency, and
includes the Intellectual property rights (IPR) and design of processes
and products.

ZED certification benefits :
1.) Increase in production capacity of the MSME sector.
2.) ZED certification scheme helps in improving the quality of the
product resulting in a reduction of the product rejection, especially for
MSME exports.
3.) The Ministry of MSMEs conducts industry awareness programs and
workshops to help small businesses understand this scheme.
4.) With the Zero Effect vision it protects the environment creating
awareness about sustainability.
5.) MSMEs are provided with a chance to learn new methods of
production and management.

ZED certification incentives :
1.) Access to Digital MSME Bronze Subscription.
2.) The fee payable for obtaining BIS/ ISO/ FSSAI/ AGMARK/
HALLMARK/ SILK MARK/ ZED Certification etc. and fee payable for
getting Technical knowhow/ Technology transfer from any recognized
national /international research laboratories/ Technical Institutes/
University, Institutions like CFTRI, CIPET, etc. by eligible unit, will be
provided subsidy up to the extent of 75%, subject to a ceiling of Rs.
10.00 lakh.
3.) The new and existing Micro, Small and Medium category industries
established by general category entrepreneurs in the State shall be
reimbursed 50% of the amount spent, maximum Rs. 5 Lakh for
obtaining ISO 9000, ISO14000, ISO18000, ISO22000 category, IS
certification, ZED certification, Bureau of Energy Efficiency (BEE)
certification LEBP certification in the field of new and renewable
energy, Euro Standard /other similar national/international
certification.
4.)  For ZED certification, MSMEs can avail assistance up-to 50% of
certification cost maximum up-to INR 50,000 after deducting the
assistance received from Government of India.

5.) Reimbursement of 50% of expenses subject to maximum of Rs. 5
lakh incurred on plant and machinery/testing equipment for obtaining
at least bronze category status under ZED scheme.
How to get ZED certification ?
ZED Certificate can be attained on 3 levels after taking the ZED Pledge:
1.) Certification Level 1: BRONZE

2.) Certification Level 2: SILVER

3.) Certification Level 3: GOLD
After the completion of the ZED pledge, an MSME can apply for any
particular certificate level out of the three and would need to conform
to all the requirements of that level in order to be eligible for that
certification. Every MSME that is on the journey of ZED must submit an
undertaking. The final ZED certificate would be issued on the basis of
the recommendations and the findings of the Accredited Assessment
Agencies.

Eligibilty & Subsidy provisions :
All MSME’s that are registered under one Udyam Registration can apply
for subsidy under this Scheme. An MSME unit will get subsidy as per the
following structure, on the cost of certification:

1.)  Micro Enterprises: 80%

2.) Small Enterprises: 60%

3.) Medium Enterprises: 50%

There will be an additional subsidy of 10% for the MSMEs owned by
Women/SC/ST Entrepreneurs OR MSMEs in
NER/Himalayan/LWE/Island territories/aspirational districts.
In addition to above, there will be an additional subsidy of 5% for
MSMEs which are also a part of the SFURTI OR Micro & Small
Enterprises – Cluster Development Programme (MSE-CDP) of the
Ministry.
For more information : https://smeventure.com/msme-idea-hackathon-2022/

The manufacturing and the service sector of the MSME can immensely
benefit from ZED scheme. It provides a new ray of hope for upcoming
businesses and nudge them to leave no stones unturned in terms of
raising the production and quality standards thereby enabling a good
distribution and access to the markets.

The ‘Zero Effect Zero Defect’ policy is a step in the right direction for
India’s economy and impacting sustainability goals in a world drastically
affected by climate change and other societal hazards. The emergence
of new MSME’s due to the flexibility provided by such policies lead to
the generation of technology oriented jobs which are much greener in
comparison to existing mega global corporations. It not only helps the
growth of India’s economy but also helps in pushing further the
boundaries of continued sustained efforts to fight pollution and other
such crisis of the day.

Do Watch : https://www.youtube.com/watch?v=A2vnP425SOM&t=153s

Many MSME’s have already become a part of the ZED Certification scheme and
other such revolutionary schemes by the Government and are shaping
the newer business landscape of the country with a fresh vision.

Businesses that are yet to avail such schemes must avail as early as they
can and start making a impact on the geography and economy