Home / Industry / Manufacturing /  Govt launches revamped Zero Effect Zero Defect Scheme for MSMEs
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The Ministry of Micro, Small, and Medium Enterprises (MSME) on Thursday launched a revamped Zero Defect Zero Effect (ZED) Certification Scheme, with an aim to make Indian companies globally competitive and help them get easier access to capital.

The Scheme is aimed to enable and facilitate MSMEs to adopt Zero Defect Zero Effect practices besides motivating and incentivizing them for ZED certification. Through the journey of ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, among others.

“ ZED will not only attempt to improve productivity and performance of MSMEs, it has the capability to change the mind-set of manufacturers and make them more environmentally conscious," said MSME minister Narayan Rane while launching the scheme.

The first phase of the revamped scheme will focus on manufacturing MSMEs, the second would be aimed at the MSMEs in the services sector.

The government has proposed an 80% subsidy on the certification cost for micro enterprises, 60%for small enterprises, and 50%for medium enterprises. There would be an additional 10% subsidy for women or SC/ST entrepreneurs-owned unit

The number of parameters for the certification, categorized as bronze, silver, and gold, have also been narrowed down from 50.

“We received feedback from MSMEs and industry associations that it is tough to comply with all 50 parameters. Hence, we have reduced them while ensuring that there is no compromise on the quality and safety of products," said Ateesh Kumar Singh, Joint Secretary, Ministry of MSME.

ZED-certified MSME players will be offered subsidies in stall charges, airfares, and freight charges for participating in businesses exhibitions and fairs abroad.

Certified MSMEs would also be eligible for concession in banks’ processing fees and rate of interest along with preference in lending. Also, the credit rating of certified MSMEs is also likely to be better.

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