MSME Sustainable (ZED) Certification Sch

May 22, 2022

Q. Why is this in news?

A. The Union Ministry for Micro, Small and Medium Enterprises has launched the MSME Sustainable (ZED) Certification Scheme.

Q. What is 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.

Q. What are the Components of the scheme?

Under the Scheme, MSMEs will get subsidy as per the following structure, on the cost of ZED certification:

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.

Q. What is 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: