Shri Narayan Rane, the Union Minister for Micro, Small and Medium Enterprises, has launched the MSME (ZED) Sustainable Certification Scheme, which is an initiative to help MSMEs adopt Zero Defect Zero Effect (ZED) practises, as well as motivate and incentivize them to pursue ZED certification and become MSME Champions.

MSMEs may minimise waste, increase productivity, raise environmental awareness, conserve energy, make better use of natural resources, extend their markets, and more by pursuing ZED Certification. The scheme’s first phase, will primarily focus on increasing manufacturing MSMEs’ participation and guiding them through the ZED process.

In Phase 2 of the scheme, services sector MSMEs will be included, as well as manufacturing and services sector MSMEs that are registered under a state government system but not on Udyam. This phase will also include provisions for ZED certification to be aligned with international certifications in order for it to be accepted globally. 

MSMEs will receive a subsidy on the cost of ZED certification in accordance with the following structure under the Scheme:

Micro Enterprises: 80%.

Small Enterprises: 60% .

Medium-sized Enterprises: 50%

MSMEs owned by women/SC/ST entrepreneurs OR MSMEs in NER/Himalayan/LWE/Island territories/aspirational areas would receive an additional 10% subsidy. In addition to the foregoing, MSMEs that are also a part of the Ministry’s SFURTI (Scheme of Fund for Regeneration of Traditional Industries) OR Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) will receive a 5% additional subsidy. In addition, each MSME that signs the ZED Pledge will get a limited purpose joining award of Rs. 10,000/-.

MSMEs can also take advantage of a variety of other incentives offered by states and UTs, financial institutions, and others for ZED Certification, as well as apply for free certification under the MSME KAWACH (COVID-19 Support) initiative.


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