ZED Scheme for MSMEs Reaches 1 Lakh Certification Milestone: A Closer Look at the Initiative

Introduction to the ZED Scheme

The ZED (Zero Defect Zero Effect) Scheme, introduced in October 2016 and revamped in April 2022, is a pivotal initiative by the Ministry of Micro, Small and Medium Enterprises (MSMEs) in India. Its core objective is to promote eco-friendly manufacturing practices among MSMEs, emphasizing quality and environmental standards.

Achieving the Milestone

As of January 2024, the ZED Scheme has marked a significant achievement by certifying 1 lakh MSMEs. This milestone showcases a dramatic increase in participation, from 423 certifications in over three years to surpassing 1 lakh in just 19 months. The current certification count stands at 1,02,642 MSMEs, with a majority at the bronze level, and a growing number achieving silver and gold levels.

Certification Levels and Criteria

The scheme offers three levels of certification – bronze, silver, and gold, each representing a higher degree of compliance with 20 performance-based parameters. These parameters include aspects like quality management, timely delivery, process control, waste management, and more. The certification costs are Rs 10,000 for bronze, Rs 40,000 for silver, and Rs 90,000 for gold.

Financial Aid and Support

A significant aspect of the ZED Scheme is the financial aid extended to MSMEs for certification. The scheme covers up to 75% of the certification cost, with a maximum subsidy of Rs 50,000. Additionally, MSMEs receive support for technology upgrades and consultancy to achieve higher certification levels, with subsidies varying based on the enterprise size.

Impact and Future Prospects

The rapid growth in certifications under the ZED Scheme indicates a positive shift towards sustainable manufacturing practices among Indian MSMEs. The scheme not only contributes to environmental conservation but also enhances the global competitiveness of these enterprises. With continuous support and encouragement, the ZED Scheme is set to propel more MSMEs towards higher standards of manufacturing excellence.