The Ministry of Micro, Small, and Medium Enterprises has launched a revamped Zero Defect Zero Effect (ZED) Certification Scheme. The first phase of this overhauled program will focus on manufacturing MSMEs while the second would be on those MSMEs in the services sector. According to an official presentation, the ZED certification can help MSMEs get easier access to capital.
Speaking at an event to launch the scheme, MSME Minister Narayan Rane said, “MSMEs contribute 30 percent to India’s Gross Domestic Product and 50 percent to the export from this country.”
Elaborating the contours of the new scheme, Vinamra Mishra, Director, Ministry of Micro, Small, and Medium Enterprises said, “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.”
Here is all you want to know about the ZED Scheme MSME
1. MSMEs will get subsidies as per the following structure, on the cost of ZED certification:
– Micro Enterprises: 80%
– Small Enterprises: 60%
– Medium Enterprises: 50%
2. There will be an additional subsidy of 10 percent for the MSMEs owned by Women/SC/ST Entrepreneurs OR MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts.
3. In addition to the above, there will be an additional subsidy of 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) of the Ministry.
4. Further, a limited purpose joining reward of Rs 10,000 will be offered to each MSME once they take the ZED Pledge
5. A provision of up to Rs. 5 lakh(per MSME) will be made available for handholding and consultancy support for MSMEs under ZED Certification for assisting them to move towards Zero Defect Zero Effect solutions.
6. The MSMEs can also avail a number of other incentives offered for ZED Certification by States & UTs, Financial Institutions, etc., and can also apply for free Certification under the MSME KAWACH (COVID-19 Support) initiative.
