From UPSC perspective, the following things are important :
Prelims level : MSME ZED Certification Scheme
Mains level : Boost for MSMEs
The Union Ministry for Micro, Small and Medium Enterprises has launched the MSME Sustainable (ZED) Certification Scheme.
MSME Sustainable (ZED) Certification Scheme
- This Scheme is an extensive drive to enable and facilitate MSMEs adopt Zero Defect Zero Effect (ZED) practices.
- It aims motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions.
- Through the ZED Certification, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc.
Components of the scheme
- 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.
Back2Basics: Zero Defect Zero Effect Scheme
- Launched in 2016 by the Ministry of MSME, the ZED scheme is an integrated and comprehensive certification system.
- The scheme accounts for productivity, quality, pollution mitigation, energy efficiency, financial status, human resource and technological depth including design and IPR in both products and processes.
- Its mission is to develop and implement the ‘ZED’ culture in India based on the principles of Zero Defect & Zero Effect.
- ZED principles include:
- Zero Defect: Zero non-conformance or non-compliance
- Zero Effect: Zero wastage, liquid discharge, solid waste; zero pollution