Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

[pib] MSME Sustainable (ZED) Certification Scheme


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:
  1. Micro Enterprises: 80%
  2. Small Enterprises: 60%
  3. 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:
  1. Zero Defect: Zero non-conformance or non-compliance
  2. Zero Effect: Zero wastage, liquid discharge, solid waste; zero pollution

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