ZED Certification Scheme launched for MSMEs to provide a roadmap to global competitiveness



Quick Summary
The MSME Sustainable (ZED) Certification Scheme has been launched to help Indian Micro, Small, and Medium Enterprises (MSMEs) achieve global competitiveness. This initiative encourages MSMEs to adopt Zero Defect Zero Effect (ZED) practices, aiming to improve productivity, reduce waste, save energy, and enhance environmental consciousness. The scheme offers significant subsidies on certification costs, with additional support available for women- or minority-owned businesses and those in specific regions or development programmes.

Shri Narayan Rane launches MSME Sustainable (ZED) Certification Scheme, interacts with Principal Secretaries of States/UTs on synergizing efforts, developing focused approach to prepare MSME ecosystem for the future.

Union Minister for Micro, Small and Medium Enterprises Shri Narayan Rane  today launched the MSME Sustainable (ZED) Certification Scheme. In his address, the Minister said that ZED has the potential to become a national movement and that it aims to provide a roadmap to global competitiveness for the MSMEs of India. He added that ZED will not only attempt to improve productivity & performance, it has the capability to change the mind-set of manufacturers and make them more environment conscious.

This Scheme is an extensive drive to enable and facilitate MSMEs adopt Zero Defect Zero Effect (ZED) practices and motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions. Through the journey of ZED Certification, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc.

ZED Certification for MSMEs: Roadmap to Global Competitiveness

Under the Scheme, MSMEs will get subsidy as per the following structure, on the cost of ZED certification:

  • Micro Enterprises: 80%
  • Small Enterprises: 60%
  • Medium Enterprises: 50%

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. 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. Further, a limited purpose joining reward of Rs. 10,000/- will be offered to each MSME once they take the ZED Pledge

A provision of up to Rs. 5 lakh(per MSME) will be made available for handholding and consultancy support for MSMEs under ZED Certification for assisting them to move towards Zero Defect Zero Effect solutions. The MSMEs can also avail a number of other incentives offered for ZED Certification by States & UTs, Financial Institutions etc. and can also apply for free Certification under the MSME KAWACH (COVID-19 Support) initiative.

Shri Rane and Minister of State for MSME, Shri Bhanu Pratap along with the ministry officials also interacted with the principal secretaries and officers of the States/UTs for higher synergy and coordination on policy, promotions and planning for the MSME Sector.

 Shri Rane, appreciated the commendable efforts undertaken by the States/UTs as they devise various programmes and policies for MSMEs in their region to accomplish the common goal of developing the MSMEs. He also mentioned that “it is imperative to develop the strategic roadmap to increase the outreach of the interventions and fast-track the last mile Entrepreneurship”.

The interaction meeting was leveraged for knowledge-sharing, exchange of innovative ideas/information, dissemination of success stories/best practices for the benefit of MSMEs across the nation and also for the mitigation of the issues faced by the States/UTs

During the session, States/UTs highlighted challenges, assistance required and ideas/ success stories to learn from each other, efforts to amplify the reach of the State’s interventions, leverage Centre Government schemes more effectively to accelerate the State's output and create employment opportunities.

Ministry of MSME serves to promote, develop and handhold MSMEs across sectors and States. The Ministry runs more than 20 different schemes such as PMEGP, SFUTI, MSE-CDP, RAMP Scheme, ATI, Udyam Registration, etc. schemes to offer support and strength in the areas of access to finance, market linkages, technology upgradation, capacity building, innovation/ideation and industrial infrastructure development etc.

FAQ :

The scheme aims to provide a roadmap for Indian MSMEs to achieve global competitiveness by adopting Zero Defect Zero Effect (ZED) practices, improving productivity, and becoming more environmentally conscious.

Micro enterprises receive an 80% subsidy, small enterprises get 60%, and medium enterprises are eligible for a 50% subsidy on the cost of ZED certification.

Yes, an additional 10% subsidy is available for MSMEs owned by Women/SC/ST Entrepreneurs or those located in NER/Himalayan/LWE/Island territories/aspirational districts. A further 5% subsidy is offered for MSMEs participating in SFURTI or MSE-CDP programmes.

MSMEs can receive up to Rs. 5 lakh per enterprise for handholding and consultancy support to help them move towards Zero Defect Zero Effect solutions. A joining reward of Rs. 10,000 is also offered upon taking the ZED Pledge.

The scheme was launched by the Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane.




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