In a significant development for India’s Micro, Small, and Medium Enterprises (MSMEs), the financial support extended under the Zero Effect, Zero Defect (ZED) certification scheme has surpassed the Rs 100 crore mark. As of late December 2023, the total assistance offered reached Rs 105.20 crore. This achievement marks a major milestone in the government’s efforts to promote environmentally sustainable manufacturing practices among MSMEs.
Since its inception in April 2022, the ZED scheme has registered 1.60 lakh MSMEs, with 78,355 of them obtaining ZED certification. This certification is crucial as it recognizes businesses that adhere to practices minimizing their environmental impact while maintaining high-quality manufacturing standards. The scheme offers a graded subsidy on certification costs, with micro enterprises receiving an 80% subsidy, small enterprises 60%, and medium enterprises 50%.
The cost of certification varies depending on the level: Rs 10,000 for bronze, Rs 40,000 for silver, and Rs 90,000 for gold. Each certification level encompasses different parameters, such as workplace safety, quality management, HR management, process control, and more, with higher levels requiring more comprehensive compliance.
The scheme’s impact extends beyond financial assistance. It serves as a component of the MSME Champions Scheme, aiming to enhance MSME competitiveness globally. Additionally, it offers up to Rs 2 lakh for consultancy to achieve the next certification level and Rs 3 lakh for technology upgradation.
The overarching goal of the ZED scheme is to drive quality manufacturing in India through the adoption of Zero Defect production processes, aligning with the broader ‘Make in India’ initiative. By focusing on quality and environmental sustainability, the scheme not only supports MSMEs in upgrading their standards but also contributes to India’s global economic and environmental goals.
The recent financial milestone of the ZED scheme signifies a strong commitment to sustainable and quality manufacturing in India, paving the way for a more environmentally conscious and competitive MSME sector.