Elevating MSMEs: ZED Certification

The MSME ZED (Zero Defect Zero Effect) certification program seeks to elevate the quality of MSMEs' products while also ensuring that their environmental effect is reduced to a minimum. MSMEs are urged to follow best practices that emphasize on attaining zero faults in manufacturing processes under the ZED scheme. The ZED Scheme is implemented by the Quality Council of India (QCI), an autonomous body created by the Ministry of Commerce and Industry.

Eligibility
All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Sustainable (ZED) Certification and avail related benefits/incentives.

Levels of Certification
The ZED certification has three levels:
1) Bronze Certification- Rs 10,000 is required for Bronze Level and is provided after meeting 5 parameters is fulfilled.
2) Silver Certification- Rs 40,000 is needed for silver certification and is granted after 14 parameters are met.
3) Gold Certification- Rs 90,000 is required for gold certification and Gold certificate is provided when all 20 parameters are achieved.

These levels are classified according to 20 performance-based parameters such as quality management, safety, production, cleanliness, energy, environment, timely delivery, process control and waste management, etc.

Incentives

• Government of India offers a maximum 85% subsidy on ZED certification expenses (Micro: 80%, Small: 60%, and Medium: 50%; SC/ST/Women/NER/J&K MSMEs receive an additional 5% subsidy).
• Benefits are to be provided to MSMEs with ZED certificates under various state industrial policies (Punjab, Odisha, Haryana, and Tamil Nadu, etc have already announced financial benefits to MSMEs with ZED ratings).
• Financial institutions like State Bank of India (SBI) and Yes Bank offer price and processing charge reductions to MSMEs with a ZED certificate. On the recommendations of the RBI, many Banks have included information about ZED in the MSME loan application form. 
• A national public procurement portal called the Government e-Marketplace (GeM) that gives ZED certified MSMEs more exposure.