MSME Sustainable (ZED) Certification Scheme

The Ministry of Micro, Small, and Medium Enterprises (MSME) has launched the revamped Sustainable (ZED) Certification Scheme called “MSME Sustainable (ZED) Certification scheme” to help the Micro, Small and Medium Enterprises (MSMEs) to adopt Zero Defect Zero Effect practices and become more energy efficient while improving quality through increased compliance with manufacturing processes.

Note on ZED Scheme

The former ZED scheme was launched in October 2016 by Prime Minister Narendra Modi. This scheme is an extensive drive to create proper awareness in MSMEs about the Zero Defect Zero Effect (ZED) manufacturing and motivate the entrepreneur to assess their enterprises for ZED and support them. As part of this scheme, All MSMEs in India need to manufacture goods with zero defects and ensure that the goods have zero effects on the environment. For more details on ZED Certification Scheme, click here

MSME Sustainable (ZED) Certification scheme:

The Government of India envisioned the Zero Defect Zero Effect (ZED) initiative to enhance MSME competitiveness, make them sustainable, and transform them into National and International Champions. Hence the MSME Sustainable (ZED) Certification scheme has been launched on 29^th April 2022. MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions.

Objectives of the MSME Sustainable (ZED) Certification scheme

The ZED certification envisages the promotion of Zero Defect Zero Effect (ZED) practices amongst MSMEs to Encourage and enable MSMEs for manufacturing quality products using the latest technology, and tools & to constantly upgrade their processes for the achievement of high quality and high productivity with the least effect on the environment:

To develop an Ecosystem for ZED Manufacturing in MSMEs, for enhancing competitiveness and enabling exports
To Promote the adoption of ZED practices and recognize the efforts of successful MSMEs
To Encourage MSMEs to achieve higher ZED certification levels through graded incentives
To Increase public awareness of demanding Zero Defect and Zero Effect products through the MSME Sustainable (ZED) Certification
To Identify areas to improve upon, thereby assisting the Government in policy decisions and investment prioritization

Features of MSME Sustainable (ZED) Certification scheme:

Through the journey of ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc

MSMEs will also be motivated to adopt best practices in work culture, standardization of products, processes, systems, etc. in order to enhance their global competitiveness and sustainability.
The ZED Certification is not just a Certification, it's enhancing the competitiveness of an MSME through assessment, handholding, managerial and technological intervention, etc

Implementation of MSME Sustainable (ZED) Certification scheme:

The ZED Certification is proposed to be implemented in 2 phases: The first phase of this overhauled program will focus on manufacturing MSMEs while the second would be on those MSMEs in the services sector

PHASE 1 - Manufacturing MSME

The first phase of the MSME Sustainable (ZED) Certification scheme will be implemented for Manufacturing MSMEs with UDYAM Registration. This phase will focus largely on maximizing the inclusion of manufacturing MSMEs and taking them through the journey of ZED

PHASE 2 Service Sector MSMEs, ZED Exports

The second phase of the MSME Sustainable (ZED) Certification scheme will be implemented for Service Sector MSMEs, ZED Export:

This phase will also strive to integrate those MSMEs (manufacturing and Service Sectors) who are registered under a State Government protocol/ system but not on UDYAM.
From this phase onwards, additional information regarding MSME preparation/performance may be collected so as to create a National MSME Competitiveness Index.
It is also envisaged to provide funding to the ZED Certified MSME to obtain international certification like CE and others, as necessary for the international market, and further, making provisions to align ZED certification with the international certifications for its global acceptance.

Benefits/Incentives Offered to MSME

Graded incentives will be announced by the Ministry of MSME for MSMEs to motivate MSMEs to achieve higher ZED cation levels.
These incentives will alsoinclude assistance to MSMEs in their preparedness & response to the COVID-19 pandemic, called MSME KAWACH (Knowledge Acquisition through WASH for an Accelerated COVID-19 Handling) which is based on the WASH (Workplace Assessment for Safety & Hygiene) Standard
MSMEs will be provided handholding to help them achieve higher ZED levels and also towards technology up-gradation for moving towards zero effect solutions/pollution control measures/cleaner technology.

ZED Certification Levels

MSME Sustainable (ZED) Certification attained in three Levels after registering and taking the ZED Pledge:

Certification Level 1: BRONZE
Certification Level 2: SILVER
Certification Level 3: GOLD

ZED Pledge

Every MSME that embarks on the journey of ZED will have to take a “ZED Pledge” before certification Level (applying for a ZED Certification Bronze, Silver, Gold). Certification on WASH Standard and other capacity-building measures through MSME KAWACH will be available to MSMEs immediately after taking ZED Pledge. After taking the ZED Pledge, the MSME can certification Level if it feels that it can fulfill the requirements mentioned in each level. The intent of taking a ZED Pledge is to take a “pre-commitment” or a solemn promise by MSMEs to uphold the values of Zero Defect Zero Effect in their practices and to urge them to move ahead on the journey of ZED.

Eligibility Criteria

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

MSME Sustainable (ZED) Certification Components

Industry Awareness Programmes/ Workshop

MSMEs will be made aware of the MSME Sustainable (ZED) Certification through nationwide awareness programs (online and/or face-to-face, as appropriate) with the assistance of stakeholders like Industry Associations, Implementing Agencies, MSMEDIs, District Industries Centres (DICs), Large Enterprises/ OEMs, BEE

Training Programmes

Stakeholders like MSME Officers, Assessors, and Consultants will be trained on the MSME Sustainable (ZED) certification to enable an effective implementation by partners like QCI, BIS, NPC

The PR campaign, Advertising & Brand Promotion:

For popularizing the MSME Sustainable (ZED) Certification and brand promotion of ZED, nationwide publicity will be done.

Assessment & Certification

MSMEs will be assessed (desktop verification, onsite assessment as applicable) and awarded the relevant Certification Level for which they have applied after fulfilling the requirements of that Level. MSME Sustainable (ZED) process will be e-enabled throughcertification process will be enabled through a single-window digital platform. ZED Certification can be attained on 3 levels after taking the ZED Pledge

Certification Level 1: BRONZE
Certification Level 2:SILVER
Certification Level 3: GOLD

After taking the ZED Pledge, an MSME can apply online for any Certification Level (Bronze, Silver, Gold) and would need to conform to all the requirements of the level applied for, in order to obtain the Certification Every MSME embarking on the journey of ZED must submit an Undertaking as per the document attached below: In case of non-conformity, the applicant MSME would be given an opportunity closes the non-conformity, in a defined time period, in order to be eligible for the desired level/Certification. The Final ZED Certificate will be issued based upon the findings and recommendation of the Accredited Assessment Agencies Note: Ministry of MSME reserves the right to visit andinspect any MSME after Certification which has availed any subsidy, benefit, or incentives under this Scheme. For more details on MSME Sustainable (ZED) Certification Procedure, click here