Zero Defect Zero Effect (ZED) Scheme Online Meeting Registration Form…
©Parag Kulkarni, Director, MCCIA
Ministry of MSME has re-launched the Zero Defect Zero Effect (ZED) scheme for the benefit of MSMEs in the manufacturing sector. A PDF comprising the guidelines is attached.
You will also find the details of the Scheme at https://zed.msme.gov.in
The Ministry has organized an online ZED registration meeting to be held tomorrow (Sunday, 15 May 2022) at 11.00 am.
They will explain the ZED registration process and the benefits to the MSMEs in the presence of Mr Ateesh Kumar Singh, Joint Secretary, M/o MSME.
Kindly confirm your participation using the following Google form link ASAP. A meeting joining link will be sent on your email id / Whatsapp.
Link for registration – https://tinyurl.com/3hzzmkhd
ZED or Zero Defect Zero Effect scheme is a new initiative launched by the Narendra Modi led central government.
ZED Scheme envisages the promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification.
In this article, we will describe the complete application process for filling up the Zero Defect Zero Effect Scheme online application/registration form.
Revamped ZED Certification Scheme
Ministry of Micro, Small and Medium Enterprises has launched a revamped Zero Defect Zero Effect (ZED) Certification Scheme.
The first phase of this overhauled programme will focus on manufacturing MSMEs while the second would be on those MSMEs in the services sector.
A new ZED certification scheme can help MSMEs get easier access to capital.
The revised ZED scheme will benefit the MSME sector which contributes 30% to India’s Gross Domestic Product and 50% to the export from this country.
According to the new guidelines “MSMEs that have ZED certification will be eligible to get concessions on parcel special trains.
As well as get preferences from credit bureaus and banks.” Banks have offered lower processing fees and some relaxation in the rate of lending to those MSMEs that have a ZED certification.
There will also be some support in the risk assessment of these certified MSMEs.
Revised Eligibility Criteria for ZED Scheme
The MSME ministry has also reworked the eligibility criteria for certification under the scheme.
The number of parameters required for a Gold category ZED certificate has been trimmed from 50 to 20.
MSMEs that have existing certifications for a criterion will also be considered valid for qualifying parameters.
As of November last year, 23,948 MSMEs had registered with the intent to adopt the principle of the ZED Scheme.
This scheme is part of a drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices.
Motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions.
Zero Effect Zero Defect Scheme Details
The Zero Defect Zero Effect Scheme 2022 is for MSME (Micro, Small and Medium Enterprises) Sector to increase the quality of products matching global standards.
The main objective of the ZED (Zero Effect, Zero Defect) scheme is to reduce the bad effect of products on the environment.
While the MSME sector plays a big role in the GDP of India, the scheme will help contribute to the environment as well.
Financial Support to MSMEs in ZED Certification Scheme
Zero Defect Zero Effect Scheme 2022 envisages the promotion of ZED manufacturing amongst MSMEs and ZED Assessment for their certification so as to:-
Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
Enable MSMEs for manufacturing quality products.
Encourage MSMEs to constantly upgrade their quality standards in products and processes.
Drive manufacturing with the adoption of Zero Defect production processes and without impacting the environment.
Support the ‘Make in India’ campaign.
Develop professionals in the area of ZED manufacturing and certification.
ZED Certification Scheme Registration Process
The ZED Certification Scheme or Zero Defect Zero Effect Scheme is a 5 steps process which is mentioned below:-
1: Firstly visit the online portal of the ZED Scheme at https://zed.msme.gov.in/
2: Register free on ZED online portal using a valid (Indian) mobile number and email address.
3: Online self-assessment on the ZED parameters followed by Desktop Assessment.
4: Site assessment, if selected on the basis of Desktop Assessment.
5: Consultancy: Rated MSMEs will have the option to avail of the service of an authorized ZED consultant for gap analysis and handholding.
ZED Scheme Eligibility Criteria to Apply Online
The Scheme is open to all Micro, Small and Medium Manufacturing Enterprises throughout the country.
The units should be registered with the Ministry of MSME (Udyog Adhar Memorandum). DIC (EM-II) or with any other agency (Industry Association and Govt agency).
Under the scheme, the MSME sector is urged to make products with “Zero Defect” and “Zero Effect” on the environment, thus improving the brand image of the country.
The prime minister also asked the MSME sector to make products at par with global standards.
Under the scheme, the MSME companies which follow the guidelines and meet the standards set by the ZED will be awarded ZED certification along with several benefits.
Silent Feature of Zero Defect Zero Effect Scheme
At no participation fees, the ministry will organise workshops, sessions, and industry awareness programmes.
Financial assistance will be provided to the MSMEs in obtaining a ZED certification.
Subsidy in ZED Certification Scheme
The subsidy provided by the Government of India for Micro, Small & Medium Enterprises will be 80%, 60% and 50% respectively.
There shall be an additional subsidy of 5% for MSMEs owned SC/ST/women and MSMEs located in NER and J&K for assessment & rating/re-rating/gap analysis/handholding:-
Assessment/Rating by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 10,000/-& Rs 80,000/- per enterprise respectively for Desktop Assessment and ZED rating Complete Assessment).
Additional rating for Defence angle i.e. Defence ZED by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40,000/- per enterprise.)
Gap Analysis, Handholding, Consultancy for improving the rating of MSMEs by Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI, MSME-TC including its autonomous bodies, BEE etc. (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Consultancy charges: average 70% of Fee) (Hand holding charges Rs. 1.9 Lakh per enterprise whereas in case of MSMEs owned by SC/ST entrepreneurs additional support of Rs 10,000/- will be provided.)
Re-Assessment/Re-Rating by Credit Rating Agencies & Other Agencies (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40000/- per enterprise.).
Benefits of ZED certification
Credible recognition of the industry for international customers seeking investment in India
Streamlined operations and lower costs
Superior quality, reduced rejection and higher revenues
Increased environmental & social benefits
Additional employment generation
Other benefits as announced by the Government from time to time