Why ZED Certification Registration Required?
The Ministry of Micro, Small and Medium Enterprises, Government of India has introduced the Financial Support to MSMEs in ZED Certification Scheme for the benefit of the Micro, Small and Medium Enterprises (MSMEs). This scheme is an extensive drive to create proper awareness in MSMEs about the Zero Defect Zero Effect (ZED) manufacturing and motivate the entrepreneur for assessment of their enterprises for ZED and support them. As part of this scheme, All MSMEs in India need to manufacture goods with zero defects and to ensure that the goods have zero effects on the environment. In this article, we will look at the processes required for an MSME to participate in ZED Certification Scheme. Contact us now.
What is Zero Defect Zero Effect Certification?
The Indian government introduced Zero Defect Zero Effect (ZED) Certification to ensure that the goods produced in the nation go through a seamless manufacturing process that yields products with โzero flawsโ and a production method that has โzero impactโ on the environment providing sustainable development. It helps MSME manufacturers scale up their businesses and maximise production output with reduced wastage.
ZED planning is mainly to promote two things that are โNational Quality Mission โ and โMake in Indiaโ products and processes to ensure continuous improvement. More than 23,000 MSME businesses have already applied for ZED certification.
The Ministry of MSME launched the ZED scheme in 2016 for the manufacturing, and service sectors. The scheme includes a ZED maturity assessment model where the enterprises continuously strive to improve the business process in order to move up the model from Bronze, Silver, and Gold.
ZED mainly accounts for productivity, implementation of quality tools and manufacturing systems, increase in energy, financial efficiency, and improved human resource and technological depth including design and intellectual property rights in both products and processes. It also motivates MSMEs to upgrade their quality standards for products and processes on a regular basis.
Types Of ZED Certification Registration
MSME Sustainable (ZED) Certification can be attained in Three Levels after registering and taking the ZED Pledge:
- Certification Level 1: BRONZE
- Certification Level 2: SILVER
- Certification Level 3: GOLD
MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivise them for ZED Certification while also encouraging them to become MSME Champions.
Fee For ZED Certification Registration
Certification Level
1. Bronze
2. Silver
3. Gold
Govt. Fee
10,000/-
40,000/-
90,000/-
ZED Certification Registration Ratings and their Parameters
ZED Certification scheme has 3 rating levels โ Bronze, silver, and Gold. MSMEs can apply for the certification level after registering and taking the pledge, depending on the quality of their manufacturing process. The certification will be given on the basis of a rating between 1 to 5 in the following manner.
- Bronze: Rating of 2.2 to 2.5.
- Silver: Rating of 2.5 to 3.5.
- Gold: Rating of 3.0 to 3.5.
How can ZED Certification Registration Benefit MSMEs?
- ZED certification scheme helps in enhancing the quality of the product, resulting in the reduction of product rejection, especially for MSME exports.
- Promotes the upgradation of technology and tools, increasing the productivity of the business.
- MSMEs are provided with a chance to learn new methods of production and management.
- The Ministry of MSMEs conducts industry awareness programs and workshops to help small businesses understand this scheme.
- Helps to develop a Zero Defect manufacturing environment for the MSMEs.
- The Zero Effect vision protects the environment by creating awareness about sustainability.
- This initiative has increased the quality of products/processes and revenue for the MSME sector.
How to obtain ZED Bronze certification?
While applying for this Level, the applicant MSME will be asked to submit basic information about the MSME on the online portal. This information will be related to (but not limited to) the details about the product(s) manufactured, Quality certificates (if any), operational processes, customer information, etc. The applicant MSME will certify that they comply with & fully all relevant & applicable regulatory & statutory norms/licenses pertaining to the functioning of the MSME unit. The applicant will have to apply afresh after the expiry of the certificate as per the validity of the scheme.
How to obtain ZED Silver certification?
While applying for this Level, the applicant MSME will be asked to submit basic information about the MSME on the online portal. This information will be related to (but not limited to) the details about the product(s) manufactured, Quality certificates (if any), operational processes, customer information, etc. The applicant MSME will certify that they comply with & fully all relevant & applicable regulatory & statutory norms/licenses pertaining to the functioning of the MSME unit. The applicant will have to apply afresh after the expiry of the certificate as per the validity of the scheme. MSME shall upload relevant documents to enable the next step of onsite assessment. The Documents will be verified (including Quality/Product Certificate validation). Once the relevant information is furnished and documents are uploaded & verified, the remote assessment will take place. Once all the requirements are complied with, recommendations for the award of Certification will be made and a Certificate will be issued.
How to obtain ZED Gold certification?
While applying for this Level, the applicant MSME will be asked to submit basic information about the MSME on the online portal. This information will be related to (but not limited to) the details about the product(s) manufactured, Quality certificates (if any), operational processes, customer information, etc. The applicant MSME will certify that they comply with & fully all relevant & applicable regulatory & statutory norms/licenses pertaining to the functioning of the MSME unit. The applicant will have to apply afresh after the expiry of the certificate as per the validity of the scheme. Once the relevant information is furnished and documents are uploaded & verified, the on-site assessment of relevant parameters that need to be assessed will be undertaken. Once all the requirements are complied with, recommendations for the award of Certification will be made and a Certificate will be issued. The certi๏cate provided will be valid for a period of 3 years. A Surveillance assessment will be conducted after 18 months of Certi๏cation. The applicant will have to apply afresh after expiry of the certi๏cate as per the validity of the scheme.
How to obtain Subsidy in ZED certifications?
MSME unit gets a subsidy on the cost of certification as per the following structure,:
1. Micro Enterprises: 80%
2. Small Enterprises: 60%
3. Medium Enterprises: 50%
Micro, Small & Medium Enterprises may opt for upgrading their ZED Certification Level at any point of time before the expiry of their existing Certificate.
What are the Benefits of ZED certifications?
1. MSME units registered under Udyam can apply for subsidies under zed certification.
2. 5% Subsidy for MSMEs involved with SFURTI OR Micro & Small Enterprises Cluster Development Programme of the Ministry.
3. MSMEs will be awarded a joining reward of Rs. 10000 once they take Zed-Pledge.
4. Waiver, discount, and loan on processing fee from various Banks for zed certification.
NOTE: MSMEs may opt for upgrading their Certification Level at any point of time before the expiry of the validity of their existing ZED Certification. Cost and subsidy will remain the same.
