Zero Defect Zero Effect Scheme 2021 is for MSME (Micro, Small and Medium Enterprises) Sector to increase the quality of products

Zero Defect Zero Effect Scheme 2021 is for MSME (Micro, Small and Medium Enterprises) Sector to increase the quality of products

Zero Defect Zero Effect Scheme 2021 – ZED Scheme Details

The Zero Defect Zero Effect Scheme 2021 is for MSME (Micro, Small and Medium Enterprises) Sector to increase the quality of products matching global standards. The main objective of ZED (Zero Effect, Zero Defect) scheme is to reduce the bad effect of products on environment. While MSME sector plays a big role in the GDP of India, the scheme will help contribute to environment as well.

Financial Support to MSMEs in ZED Certification Scheme

Zero Defect Zero Effect Scheme 2021 envisages promotion of ZED manufacturing amongst MSMEs and ZED Assessment for their certification so as to:-

• Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
• Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
• Enable MSMEs for manufacturing of quality products.
• Encourage MSMEs to constantly upgrade their quality standards in products and processes.
• Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.
• Support ‘Make in India’ campaign.
• Develop professionals in the area of ZED manufacturing and certification.

The ZED Certification Scheme or Zero Defect Zero Effect Scheme is a 5 steps process which is mentioned below:-

• Firstly visit the online portal of ZED Scheme at http://www.zed.org.in/

• Register free on ZED online portal using the link – http://assessment.zed.org.in/Assessment/Assessment_BeforeLogin.aspx, using the valid (Indian) mobile number and email address.

• Online self-assessment on the ZED parameters followed by Desktop Assessment.

• Site-assessment, if selected on the basis of Desktop Assessment.

• Consultancy: Rated MSMEs will have the option to avail the service of an authorized ZED consultant for gap-analysis and handholding.

ZED Scheme Eligibility Criteria to Apply Online

The Scheme is open to all Micro, Small and Medium Manufacturing Enterprises throughout the country. The units should be registered with Ministry of MSME (Udyog Adhar Memorandum), DIC (EM-II) or with any other agency (Industry Association and Govt agency).

Under the scheme, MSME sector is urged to make products with “Zero Defect” and “Zero Effect” on the environment, thus improving the brand image of the country. The prime minister also asked the MSME sector to make products at par with global standards.

Under the scheme, the MSME companies which follows the guidelines and meet the standards set by the ZED will be awarded ZED certification along with several benefits.

Salient Features of Zero Defect Zero Effect Scheme

• At no participation fees, ministry will organise workshops, sessions, industry awareness programmes. 
• Financial assisstance will be provided to the MSMEs in obtaining a ZED  certification. 

Subsidy in ZED Certification Scheme

The subsidy provided by the Government of India for Micro, Small & Medium Enterprises will be 80%, 60% and 50% respectively. There shall be an additional subsidy of 5% for MSMEs owned SC/ST/women and MSMEs located in NER and J&K for assessment & rating/re-rating/gap analysis/hand holding:-

• Assessment/Rating by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 10,000/-& Rs 80,000/- per enterprise respectively for Desktop Assessment and ZED rating Complete Assessment).

• Additional rating for Defence angle i.e. Defence ZED by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40,000/- per enterprise.)

• Gap Analysis, Handholding, Consultancy for improving rating of MSMEs by Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI, MSME-TC including its autonomous bodies, BEE etc. (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Consultancy charges: average 70% of Fee) (Hand holding charges Rs. 1.9 Lakh per enterprise whereas in case of MSMEs owned by SC/ST entrepreneurs additional support of Rs 10,000/- will be provided.)

• Re-Assessment/Re-Rating by Credit Rating Agencies & Other Agencies (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40000/- per enterprise.).

Benefits of ZED certification

• Credible recognition of the industry for international customers seeking investment in India
• Streamlined operations and lower costs
• Superior quality, reduced rejection and higher revenues
• Increased environmental & social benefits
• Additional employment generation
• Other benefits as announced by the Government from time to time

The interested companies can apply online for the assessment and ZED certification of their products on the official website at zed.org.in. The ZED scheme guidelines are available at the URL here – https://www.startupindia.gov.in/content/sih/en/government-schemes/zed_certification.html