by What is ZED certification for MSME in India ?
The ZED (Zero Defect & Zero Effect) Certification for MSMEs in India is a government-initiated program aimed at enhancing the competitiveness, sustainability, and global excellence of Micro, Small, and Medium Enterprises (MSMEs) . The certification scheme was launched by Union Minister for Micro, Small, and Medium Enterprises Shri Narayan Rane on April 28, 2022.
The main objectives of the ZED Certification are to:
- Reduce wastages and increase productivity.
- Enhance environmental consciousness, save energy, and optimally use natural resources.
- Expand markets for MSMEs.
- Encourage the adoption of best practices in work culture, standardization of products, processes, and systems.
MSMEs can obtain ZED Certification in three levels: Bronze, Silver, and Gold[3]. The certification process involves taking the ZED Pledge, registering online, and conforming to the requirements of the chosen certification level[4]. The government fees for the ZED Certification are as follows:
- Bronze certificate: INR 10,000.
- Silver certificate: INR 40,000.
- Gold certificate: INR 90,000.
To promote ZED Certification, the government also provides subsidies to MSMEs[5]. The fee for ZED certification assessment varies depending on the level of certification.
MSMEs can opt for upgrading their ZED Certification Level at any point of time before the expiry of the cost and subsidy will remain the same[5]. The ZED Certification is issued by the Quality Council of India (QCI) after evaluating the MSME.
what are the eligibility criteria for zed certification for msmes
All MSMEs registered with the UDYAM registration portal of the Ministry of Micro, Small and Medium Enterprises (MoMSME) are eligible to participate in the ZED certification scheme and avail related benefits/incentives. The ZED certification scheme is a voluntary program designed to encourage MSMEs to adopt best practices in manufacturing and minimize environmental impact. The scheme provides a rating system based on ten parameters, including quality, productivity, innovation, and environmental sustainability. The certification process involves online registration, self-assessment, desktop assessment, and onsite assessment. MSMEs with ZED certification are eligible for preferential treatment under various government schemes, including priority lending, reduced interest rates, and tax benefits. The ZED certification system addresses and provides a roadmap for enhancing business and reducing negative environmental impact.
What are the benefits of zed certification for MSMEs in India
ZED (Zero Defect & Zero Effect) Certification for MSMEs in India offers several benefits to the entrepreneurs. The certification scheme aims to enhance the competitiveness, sustainability, and global excellence of MSMEs. The benefits of ZED certification include increased customer satisfaction, improved quality, increased market access, and government incentives. ZED certified MSMEs are more likely to have satisfied customers as the certification focuses on minimizing waste and pollution. ZED certification can help MSMEs to access new markets as many buyers and retailers are now looking for suppliers who are certified to high standards. The government provides subsidies to MSMEs for obtaining ZED certification, and there is an additional subsidy of 10% for the MSMEs owned by SC, ST, and women entrepreneurs. ZED certification helps MSMEs to improve their quality standards by implementing the principles of zero defects and zero effect. MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, and adopt best practices in work culture, standardization of products, processes, and systems.
What are the different levels of zed certification for MSMEs
The ZED (Zero Defect & Zero Effect) Certification for MSMEs in India has three levels:
- Bronze: This is the first level of certification.
- Silver: This is the second level of certification.
- Gold: This is the highest level of certification.
What is the cost of zed certification for MSMEs
Each level is associated with specific government fees and professional fees for the certification assessment. The government fees for ZED Certification are as follows:
- Bronze certificate: INR 10,000
- Silver certificate: INR 40,000
- Gold certificate: INR 90,000
MSMEs can avail graded incentives as prescribed for the three ZED Certification Levels[5]. The certification aims to enhance the competitiveness of an organization by guidance, assessment, handholding, managerial, and technological intervention, not just certification.
How long does it take to obtain zed certification for MSMEs
The time to obtain ZED (Zero Defect & Zero Effect) Certification for MSMEs in India can vary. The handholding process, which includes guidance, assessment, and managerial and technological intervention, typically takes around 6 months. The onsite assessment, which is part of the certification process, typically takes 2-3 days. After the assessment, the ZED rating and certificate are issued to successful MSMEs. The certification is valid for 4 years, after which the unit will have to apply for renewal[1]. The entire process involves registration, handholding, assessment, and the issuance of the certification. MSMEs can opt for upgrading their ZED Certification Level at any point before the expiry, and the time and subsidy will remain the same.
What is the cost of zed certification for MSMEs
The cost of ZED certification for MSMEs in India varies depending on the level of certification and the type of subsidies available. The fees for ZED certification are as follows:
Bronze Level:
- Government Fee: INR 10,000
- Professional Fees: INR 15,000
- Silver Level:
- Government Fee: INR 40,000
- Professional Fees: INR 25,000
- Gold Level:
- Government Fee: INR 90,000
- Professional Fees: INR 50,000
MSMEs can avail assistance up to 50% of the certification cost, maximum up to INR 50,000[2]. There is also a joining reward of INR 10,000 for MSMEs who join the ZED scheme, which is valid for one year[1]. The subsidy on the cost of ZED certification is available for Micro, Small, and Medium Enterprises, with additional subsidies for Women/SC/ST-owned MSMEs or MSMEs in Northeast Region/Himalayan Region/Low Income States/Island regions[5].
The total government fee for ZED certification is as follows:
- Bronze certificate: INR 10,000
- Silver certificate: INR 40,000
- Gold certificate: INR 90,000
The ZED certification is issued by the Quality Council of India (QCI) after evaluating the MSME[3].
