Updated on: May 25th, 2022
11 min read
The MSME Sustainable Certification Scheme enables and facilitates the Micro, Small, and Medium Enterprises (MSMEs) to adopt Zero Defect Zero Effect (ZED) practices. This scheme also motivates and incentivises the MSMEs to obtain ZED certification, encouraging them to become MSME champions.
MSMEs can increase productivity, reduce wastage substantially, enhance environmental consciousness, optimally use natural resources, save energy, expand their markets, etc., through the journey of ZED certification.
The ZED certification enhances the competitiveness of an MSME through hand holding, assessment, managerial and technological intervention, etc. The MSMEs are motivated to adopt best practices in the standardisation of products, systems, processes, work culture, etc., in order to enhance their global sustainability.
Under the MSME Sustainable Certification Scheme, the MSMEs are provided with an incentive in the form of a subsidy to achieve ZED certification. The following subsidy is provided upon the cost of ZED certification to the MSMEs:
Under the scheme, there is an additional subsidy of 10% for the MSMEs owned by SC, ST and women entrepreneurs. There is also an additional 10% subsidy for the MSMEs in the Himalayan region, North Eastern Region (NER), Left Wing Extremism (LWE), island territories or aspirational districts.
Further, there is an additional 5% subsidy for the MSMEs part of the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) or SFURTI of the MSME Ministry. Further, a limited purpose joining reward of Rs.10,000 is offered to every MSME once they take the ZED pledge.
Under the scheme, a provision of up to Rs.5 lakh per MSME is made available for consultancy support and handholding for the MSMEs under the ZED certification to assist them in moving towards Zero Defect Zero Effect (ZED) solutions. The MSMEs can avail many other incentives offered for ZED certification by states and UTs, financial institutions, etc.
The MSMEs can attain MSME Sustainable (ZED) Certification in three levels after taking the ZED pledge:
All MSMEs registered with the Udyam registration portal are eligible to participate in the MSME Sustainable (ZED) Certification scheme and avail of the related benefits and incentives.
All MSMEs that embark on the journey of ZED will have to take a ‘ZED Pledge’ before certification level, i.e. applying for a ZED certification of bronze, silver or gold. Certificate on Workplace Assessment for Safety and Hygiene (WASH) standard and other capacity-building measures through MSME KAWACH will be available to the MSMEs immediately after taking the ZED pledge.
After taking the ZED pledge, the MSMEs can attain the certification level when they feel that they can fulfil the requirements mentioned for each level. The intention of taking a ZED pledge is to take a pre-commitment or a solemn promise by the MSMEs to uphold the Zero Defect Zero Effect values in their practices and help them move ahead on their journey of ZED.
The procedure to apply for obtaining the MSME (ZED) certification is as follows:
The process for obtaining a bronze ZED certificate level is as follows:
The process for obtaining a silver ZED certificate level is as follows:
The process for obtaining a gold ZED certificate level is as follows:
The ZED certification will be implemented in two phases. The first phase of this program would focus on manufacturing MSMEs, while the second phase would focus on service sector MSMEs.
Phase 1 – Manufacturing MSME
The first phase will be implemented for the manufacturing MSMEs with Udyam registration. This phase focuses largely on maximising the inclusion of manufacturing MSMEs and taking them through the journey of ZED.
Phase 2 – Service Sector MSMEs, ZED exports
The second phase will be implemented for Service Sector MSMEs, ZED export. This phase would also strive to integrate those MSMEs (service and manufacturing sectors) registered under a state government protocol or system but not under Udyam registration.
Additional information regarding MSME performance or preparation may be collected from the second phase onwards to create a National MSME competitiveness index. It also envisages providing funding to the ZED certified MSMEs to obtain international certifications like CE and others necessary for the international market and make provisions to align ZED certification with the international certifications for its global acceptance.
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