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Zed Scheme

Zero Defect, Zero Effect

The MSME Sustainable ZED Certification Scheme is designed to roll out in two distinct phases, ensuring a comprehensive and inclusive approach to elevating MSMEs across various sectors.

This scheme comprises for 2 Phases:

Phase 1: This phase focuses exclusively on manufacturing MSMEs that hold a UDYAM Registration certificate. These enterprises will be the first to adopt the ZED principles, setting a benchmark for quality and sustainability in manufacturing.

Phase 2: In the second phase, the scheme will expand to include both manufacturing and service sector MSMEs. These enterprises must be registered under the respective state government protocols and systems. This phase ensures that a broader range of MSMEs can benefit from the ZED Certification, promoting excellence across the entire MSME spectrum.

Key Objectives of the MSME Sustainable ZED Certification Scheme

Enhancing Competitiveness

By adopting ZED principles, MSMEs can significantly improve their product quality and operational efficiency, making them more competitive in both domestic and international markets.

Improving Systems and Processes

The certification process guides MSMEs in refining their systems and processes, ensuring they meet high standards of operational excellence and sustainability.

Reducing Wastage

The scheme encourages the implementation of lean manufacturing techniques, which help in minimizing waste, reducing production costs, and improving resource utilization.

Boosting Quality of Products and Services

Through continuous improvement and adherence to ZED standards, MSMEs can ensure their products and services meet international quality benchmarks.

Impact of the MSME Sustainable ZED Certification Scheme

Building a Robust MSME Ecosystem

By implementing ZED principles, MSMEs can create a strong and resilient ecosystem characterized by high standards of quality and sustainability.

Support for Economic Growth

The scheme supports economic growth by enhancing the productivity and efficiency of MSMEs, making them key players in the global supply chain.

Creating a Sustainable Environment

The focus on environmentally friendly practices ensures that MSMEs contribute positively to the environment, aligning with global sustainability trends and reducing the impact of industrial activities.

Promoting the Made in India Concept

The scheme underlines the importance of the “Made in India” brand, ensuring that products manufactured in India are synonymous with quality and sustainability on the global stage.

Contribution of MSMEs to National Growth

MSMEs are the backbone of India’s economy, playing a crucial role in employment generation, export promotion, and inclusive growth. Here’s how MSMEs contribute to our nation:

Economic Growth: MSMEs contribute around 30% to India’s GDP and nearly 50% to the country’s exports. By improving their competitiveness through the ZED Certification Scheme, their contribution to economic growth is poised to increase.

Employment Generation:With over 63 million MSMEs in India, this sector is one of the largest job creators, providing employment to over 110 million people. Enhanced productivity and quality standards will likely lead to more job opportunities

Export Expansion: By adopting international standards of quality and sustainability, MSMEs can expand their reach in global markets, thereby increasing India’s export base.

Innovation and Entrepreneurship:The MSME sector is a hotbed of innovation and entrepreneurial spirit. The ZED Certification Scheme fosters a culture of continuous improvement and innovation, driving the sector towards new heights.

Sustainable Development:The emphasis on Zero Effect ensures that MSMEs adopt environmentally friendly practices, contributing to sustainable development goals and reducing the carbon footprint.

ZED Scheme Subsidies

Certification Subsidy:

  • Zed Joining Reward: Rs. 10,000 /-
  • 80% Micro Enterprises
  • 60% Small Enterprises
  • 50% Medium Enterprises

ADDITIONAL SUBSIDIES/ FINANCIAL ASSISTANCE:

  • 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.
  • 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.

The Ministry of MSME has also decided to provide financial assistance and support to MSMEs under the ZED certification scheme -:

  • Subsidy on cost of Cerificaion
  • Financial assistance in Testing/Systems/ Product Certification
  • Subsidy on Handholding
  • Subsidy on technology upgradation for Zero effect Solutions

ZED Scheme Benefits

ZED Certified MSMEs derive several benefits from the implementation of the ZED parameters which enhances their competitiveness. Apart from the internal benefits, several incentives like financial assistance for certification, handholding, technology upgradation and graded incentives (based on the level of ZED Certification) are also available from -:

  • Central Government
  • State Governments
  • Financial Institutions

To know more about the benefits, Click Here

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