Govt launches revamped Zero Effect Zero Defect Scheme for MSMEs


The Ministry of Micro, Small, and Medium Enterprises has relaunched the Zero Defect, Zero Effect (ZED) Certification Scheme. The first phase of this revamped programme will focus on manufacturing MSMEs, while the second will focus on service MSMEs. According to an official presentation, ZED certification can assist MSMEs in gaining easier access to capital.

“MSMEs contribute 30% to India’s GDP and 50% to exports from this country,” MSME Minister Narayan Rane said at the scheme’s launch event.

Vinamra Mishra, Director, Ministry of Micro, Small, and Medium Enterprises, elaborated on the new scheme, sayin from credit bureaus and banks.”

The MSME ministry has also revised the scheme’s eligibility criteria for certification. The number of parameters required for a ZED certificate in the Gold category has been reduced from 50 to 20. MSMEs with existing certifications for a criterion will be accepted for qualifying parameters as well.

As of November of last year, 23,948 MSMEs had registered with the intention of adopting the ZED Scheme principle. This scheme is part of a larger effort to raise MSMEs’ awareness of Zero Defect Zero Effect (ZED) practises, motivate and incentivize them to pursue ZED certification, and encourage them to become MSME Champions.

Here are the few points which should be known by all about the MSME and the ZED scheme:

1. MSMEs will receive a subsidy on the cost of ZED certification based on the following structure: – Micro-Enterprises account for 80% of all businesses. – Small Businesses: 60% – Medium Enterprises: 50%

2. A 10% additional subsidy will be provided to MSMEs owned by Women/SC/ST Entrepreneurs OR MSMEs located in NER/Himalayan/LWE/Island territories/aspirational districts.

3. In addition to the above, MSMEs that are also a part of the Ministry’s SFURTI OR Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) will receive a 5% subsidy.

4. In addition, each MSME who takes the ZED Pledge will receive a Rs 10,000 limited purpose joining reward.

5. A provision of up to Rs. 5 lakh (per MSME) will be made available under ZED Certification for handholding and consultancy support for MSMEs in order to assist them in moving toward Zero Defect Zero Effect solutions.

6. There are many other n number of incentives available for the MSME’s which are offered for the ZED registered by states and UT’s. And can also apply for free Certification under the MSME KAWACH (COVID-19 Support) initiative,eg: “MSMEs that have ZED certification will be eligible to get concessions on parcel special trains, as well as preferential treatment.

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