Addressing the nation on India’s 68th Independence Day, Hon’ble Prime Minister Shri Narendra Modi urged the industry, especially the Micro, Small and Medium Enterprises (MSMEs) of India, to manufacture goods in the country with “Zero Defects” so that our exported goods are never returned to us and to ensure that the goods have “Zero Effect” that they should not have a negative impact on the environment.

The Government of India envisioned the Zero Defect Zero Effect (ZED) initiative to enhance MSME competitiveness, make them sustainable and transform them as National and International Champions. Through the journey of ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc. MSMEs will also be motivated to adopt best practices in work culture, standardisation of products, processes, systems etc. in order to enhance their global competitiveness and sustainability.

This Scheme is proposed to be implemented in 2 Phases:

Phase 1: For Manufacturing MSMEs with UDYAM Registration. This phase will focus largely on maximizing inclusion of manufacturing MSMEs and taking them through the journey of ZED.

Phase 2: Inclusion of Service Sector MSMEs. This phase will also strive to integrate those MSMEs (manufacturing and Service Sectors) who are registered under a State Government protocol/system but not on UDYAM. From this phase onwards, additional information regarding MSME operations/performance may be collected so as to create a National MSME Competitiveness Index.

ZED CERTIFICATION LEVELS AND PARAMETERS

MSME Sustainable (ZED) Certification can be attained in THREE Levels after registering and taking the ZED Pledge:

ZED Pledge

• Certification Level 1: BRONZE (5 Parameters)
• Certification Level 2: SILVER (14 Parameters)
• Certification Level 3: GOLD (20 Parameters)

SUBSIDY ON COST OF CERTIFICATIONS & OTHER INCENTIVES

INCENTIVES

Incentives (Ministry Of MSME)

1. Access to Digital MSME Gold Subscription
2. Stall Charges subject to a maximum of Rs. 4.00 lakh or actual rent paid, whichever is lower.
3. Economy class airfare subject to a maximum of Rs. 2.25 lakh or actual fare paid, whichever is lower.
4. Actuals subject to maximum of Rs. 50,000/- + Rs. 25,000/- per MSME unit and Rs. 75,000/- + Rs. 25,000/- per MSME for Latin American Countries.

Financial Institution Incentives

Waiver on Processing Fees and Interest Rate for MSMEs. This concession varies from state to state and provided by different financial institutions.

State Incentives

1. 1. The new and existing Micro, Small and Medium category industries established by general category entrepreneurs in the State shall be reimbursed 50% of the amount spent, maximum Rs. 5 Lakh for obtaining ISO 9000, ISO14000, ISO45000, ISO22000 category, IS certification, ZED certification, Bureau of Energy Efficiency (BEE) certification LEBP certification in the field of new and renewable energy, Euro Standard or other similar national/international certification. (Commerce and Industries)
   2. With a vision to encourage domestic products to be globally competitive, the policy will promote quality certifications under ZED scheme and also support to obtain ISI/WHO-GMP/Hallmark certifications & other national/International certification from Quality Council of India. For ZED certification, MSMEs can avail assistance up-to 50% of certification cost maximum up-to INR 50,000 after deducting the assistance received from Government of India. ” (Commerce and Industries)
   3. The freight assistance to the extent of 1% of FOB value or actual freight excluding government fee and taxes on transportation of goods from place of manufacture to the seaport/ air cargo/ by road up to international border, whichever is less and maximum up to INR 10 lakh in ‘C’ and ‘D’ category blocks and INR 5 lakh in ‘A’ and ‘B’ category blocks per annum to new exporting micro and small enterprises with turnover less than INR 10 crore and having ZED certification, located anywhere in the State. (Directorate of MSME)
   4. Incentives on acquisition of plant machinery/ testing equipment for adopting ZED. (Directorate of MSME)
   5. Reimbursement @50% of premium paid on insurance max upto INR 1.5 lakh per annum per unit for Micro and Small units for 05 years having ZED certification. (Directorate of MSME)
   6. There are many more incentives schemes from different state governments on Quality Certification, Capital Investment, Fright and Trade Fair etc.