Financial Support to MSMEs in ZED Certification Scheme

The Ministry of MSME has decided to implement the ZED Certification Scheme with the help of Quality Council of India (as NMIU) & other stakeholders for 22,222 MSMEs unit with a total budget of Rs. 491 Crores (including Government of India contribution of Rs. 365 Crores) during the 12th Five Year Plan.

Objectives of the Scheme

The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement supporting the Make in India initiative. The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs so as to

• Promote adaptation of Quality tools/systems and Energy Efficient manufacturing, Encourage MSMEs to constantly upgrade their quality standards in products and processes,
• to drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.
• 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.

Eligibility to apply for the scheme

All MSMEs registered under MSME Act, 2006 as amended from time to time and also to MSMEs which are included as per executive orders issued by AS & DC (MSME) in consistent with MSME Act from time to time.

Nature of assistance

• 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.

Government Subsidies

The subsidies provided by the government under this scheme are as follows:

• Micro enterprises: 80%
• Small enterprises: 60%
• Medium enterprises: 50%
• An additional subsidy of 5% is provided to MSMEs that are owned by women in the SC/ST category.
• An additional subsidy of 5% is provided to MSMEs located in northeast India and J&K.

Registration Process

The ZED Certification Scheme is a 4 steps process:
Step 1 : Register free on the online portal of ZED (www.zed.org.in), using the following link:
http://assessment.zed.org.in/Assessment/Assessment_BeforeLogin.aspx, using the valid (Indian) mobile number and email address.
Step 2 : Online self-assessment on the ZED parameters followed by Desktop Assessment.
Step 3 : Site-assessment, if selected on the basis of Desktop Assessment.
Step 4 : Consultancy: Rated MSMEs will have the option to avail the service of an authorized ZED consultant for gap-analysis and handholding.

Takeaway

The scheme is an extensive drive to create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED and support them. After ZED assessment, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes etc.

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