Financial Support for MSMEs in the ZED Certification Scheme

The ZED Zero Defect Zero Effect (ZDE) certification scheme in India aims to enhance the competitiveness of Micro Small and Medium Enterprises (MSMEs) by promoting quality manufacturing and sustainable practices. To assist MSMEs in achieving ZDE certification, the Indian government provides various financial assistance measures including subsidies, reimbursement of expenses, access to credit, skill development programs, and incentives for improvement. Additionally, awareness and outreach programs are conducted to inform MSMEs about the benefits and financial support available.

Subsidies for Certification Costs

One of the primary ways the government supports MSMEs in obtaining ZDE certification is through subsidies for certification costs. This financial assistance can include:

Feeds for the certification process Training programs Consultancy services

Reimbursement of Expenses

Other financial assistance measures provided include the reimbursement of expenses incurred during the certification process. This can include:

Training costs for employees Investments in quality improvement measures

Access to Credit

The government facilitates easier access to credit for MSMEs pursuing ZDE certification. By securing financial support, MSMEs can invest in necessary upgrades and improvements to meet ZDE standards.

Skill Development Programs

Financial support is also available for skill development initiatives that help MSMEs train their workforce in quality management practices and sustainable manufacturing processes. This ensures a skilled workforce capable of contributing to the overall quality and sustainability of the manufacturing sector.

Incentives for Improvement

MSMEs that achieve ZDE certification may be eligible for additional incentives such as grants or favorable loan terms. These incentives encourage continuous improvement and innovation, driving MSMEs to maintain and enhance their standards.

Awareness and Outreach Programs

The government conducts awareness programs to inform MSMEs about the benefits of ZDE certification and how to access financial support. These programs help increase awareness and participation in the certification scheme, promoting a culture of quality and sustainability across the sector.

Implementation Details

The Ministry of MSME, in collaboration with the Quality Council of India as the National Manufacturing Institute Uttar Pradesh (NMIU), will implement the ZED Certification Scheme for 22,222 MSMEs units with a total budget of Rs. 491 Crores. The government's contribution is Rs. 365 Crores, spread over the 12th Five Year Plan.

The objectives of the scheme include inculcating Zero Defect Zero Effect (ZDE) practices in manufacturing processes, ensuring continuous improvement, and supporting the Make in India initiative. This extensive drive aims to enhance the global competitiveness of MSMEs by providing them financial support in assessment, rating, and handholding in their manufacturing processes concerning quality and environmental aspects.

The scheme includes nationwide awareness, building the capacities of accredited agencies or bodies through training and certification of assessors and consultants for site assessment and handholding. An e-platform for assessments and e-content for capability building also form part of the scheme.

For more details, you can download the guideline of the scheme by clicking here.