Govt launches ZED certification scheme 2.0 for MSMEs

The Business Enabling Environment report that will replace the ease of doing business report needs to be less political, and may have to do away with ranking of nations.

Union Minister for Micro, Small and Medium Enterprises Narayan Rane on Thursday relaunched the Zero Defect Zero Effect (ZED) Certification Scheme to help Indian manufacturers become globally competitive. Initially, the scheme will focus on manufacturing MSMEs, and will expand into service MSMEs in the second phase.

The certification scheme looks to help MSMEs adopt Zero Defect Zero Effect practices and to incentivise them to go in for ZED certification. By adopting ZED practices, MSMEs can cut wastage, increase productivity, improve environmental consciousness, widen markets, and save energy. The minister said ZED scheme will provide a roadmap to global competitiveness for Indian MSMEs and could become a national movement. He said the scheme could change the mind-set of manufacturers and make them environment conscious.

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ZED certification benefits

The certified MSMEs will get subsidies on stall charges, airfares, and freight charges for taking part in businesses exhibitions abroad. They are also eligible for concessions in processing fees of banks, lower lending rates and preferential lending facility. The relaunched scheme has brought down the number of parameters for the certification.

policy circle image

policy circle image

Under the scheme, micro enterprises will get 80% subsidy on the certification cost, small enterprises will get 60%, while medium enterprises will be offered 50% subsidy. MSMEs run by women and SC/ST entrepreneurs will get additional 10% subsidy. There would be an additional 5% subsidy for enterprises that are part of the SFURTI OR Micro & Small Enterprises – Cluster Development Programme schemes of the MSME ministry. The enterprises that take the ZED pledge will also be offered a joining reward of Rs 10,000.

Handholding and consultancy support of up to Rs 5 lakh will also be offered to MSMEs to adopt ZED solutions. The certified MSMEs will also be eligible for the incentives offered by state governments and financial institutions.

The ZED certification scheme will help MSMEs to become globally competitive by adopting production practices that have low impact on the environment. The scheme was launched to support the government’s Make in India initiative. It encourages MSMEs to develop an ecosystem for zero defect manufacturing, promotes quality tools, and supports energy efficient manufacturing.