Incentives to Zero Defect Zero Effect (ZED) Certified MSMEs

ZED Certification

MSME Sustainable (ZED) Certification is an extensive drive by Ministry of MSME to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate & incentivise them for ZED Certification.

Objective

The objective of ZED Scheme is quoted as - "We should manufacture goods in such a way that they carry zero defect and that our exported goods are never returned to us. We should manufacture goods with zero effect that they should not have a negative impact on the environment".

The ZED Certification envisages promotion of Zero Defect Zero Effect (ZED) practices amongst MSMEs so as to:

• Encourage and enable MSMEs for manufacturing of quality products using latest technology, tools & to constantly upgrade their processes for achievement of high quality and high productivity with the least effect on the environment.
• Develop an Ecosystem for ZED Manufacturing in MSMEs, for enhancing competitiveness and enabling exports.
• Promote adoption of ZED practices and recognising the efforts of successful MSMEs.
• Encourage MSMEs to achieve higher ZED Certification levels through graded incentives.
• Increase public awareness on demanding Zero Defect and Zero Effect products through the MSME Sustainable (ZED) Certification.
• Identify areas to improve upon, thereby assisting the Government in policy decisions and investment prioritization.

ZED Certification Levels

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

1. Every MSME that embarks on the journey of ZED will have to take a “ZED Pledge” before applying for a ZED Certification Level (Bronze, Silver, Gold).
2. Certification on WASH Standard & other capacity building measures through MSME KAWACH will be available to MSMEs immediately after taking ZED Pledge.
3. 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.

Eligibility for ZED Certification

All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Sustainable (ZED) Certification and avail related benefits/incentives.

Subsidy on Cost of Certification

Any number of Units registered under one Udyam Registration can apply for subsidy under this Scheme. Each Unit (under one Udyam Registration) will need to apply for Certification separately to avail subsidy/ benefits/ incentives.

1. MSMEs will be given financial assistance/subsidy for obtaining for a ZED Certification Level.
2. An MSME unit will get subsidy as per the following structure, on the cost of certification:

              i. Micro Enterprises: 80%
              ii. Small Enterprises: 60%
              iii. Medium Enterprises: 50%

Additional Subsidy:

1. 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.
2. 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.

MSMEs may opt for upgrading their Certification Level at any point of time before the expiry of validity of their existing ZED Certification. Cost and subsidy will remain the same for the applied Level.

Concession for all ZED certified MSME borrowers of Bank of Maharashtra (New as well existing)

Note: The concessions linked to ZED certificate shall be removed after expiry of validity of certificate. The concessions can be re-extended after renewal of certificate and informing the same to Branch for updating in Core Banking System.

Renewal after expiry of ZED Certificate

After the expiry of the validity of the ZED Certificate, MSMEs can go for Renewal of their ZED Certification level in order to continue availing associated benefits / incentives.

Govt. Website

https://zed.msme.gov.in