Zero Defect Zero Effect (ZED) Certification for MSMEs

ZED – Enhancing Market access and brand recognition “Inspired by our Prime Minister’s vision, ZED certification is all about making products without defects and processes without harming the environment. Let’s show the world we’re all about ‘Zero Defect, Zero Effect’ in our manufacturing journey!“ The Zero Defect Zero Effect (ZED) scheme was launched in India in April 2022.

What Is ZED Certification ?

ZED Certification, or Zero Defect Zero Effect Certification, is a Government initiative aimed at encouraging Micro, Small, and Medium Enterprises (MSMEs) to adopt sustainable and quality-oriented practices.

Objectives of ZED Certification

• Promote quality control and defect reduction in MSME products.
• Enhance brand recognition and market competitiveness of MSMEs.
• Encourage MSMEs to adopt environmentally friendly practices.

Benefits of ZED Certification for MSMEs

Increased Market Access –

• If your small business gets ZED certified, it gets a VIP pass for Government shopping on GeM – that’s a big advantage.
• Think of ZED certification like a gold star for small businesses – it makes them super attractive to people who want to buy things.

Improved Product Quality –

• Getting ZED certified pushes small businesses to make better quality stuff and fewer mistakes.
• This can lead to increased customer satisfaction and loyalty.

Enhanced Brand Recognition – 

• ZED certification is like a quality stamp for small businesses.
• When customers see that stamp, they buy more from that business.

Reduced Environmental Impact –

• ZED certification pushes small businesses to go green, making them more environmentally friendly.
• This helps create a sustainable future for both businesses and society.

INCENTIVES :-

There are majorly two types of incentives

1. Financial Incentives
2. Graded Incentives

FINANCIAL ASSISTANCE

• Subsidy on Certification
• Financial support for Testing/Systems/Product Certification
• Subsidy on Hand Holding
• Subsidy on technology upgradation for Zero Effect Solutions

GRADED INCENTIVES

Graded incentives as prescribed by States, Financial Institutions, other Ministry/Departments etc., for the three ZED Certification Levels.

INCENTIVES SUBSIDY ON COST OF CERTIFICATION 

          80 %                                      60%                                        50%

Micro Enterprises             Small Enterprises              Medium Enterprises

ZED PARAMETERS

PARAMETERS EXEMPTED FROM ASSESSMENT

TYPES OF ZED CERTIFICATES

The ZED scheme offers three levels of certification: Bronze, Silver, and Gold –

BRONZE	SILVER	GOLD
Enhanced brand image and reputation	Enhanced risk management	Benchmark for operational excellence
Improved customer satisfaction	Improved employee engagement and motivation	Competitive advantage in global markets
Increased market opportunities	Strengthened supply chain partnerships	Enhanced brand equity and customer loyalty
Reduced costs and waste	Eligibility for additional subsidies and incentives	Eligibility for exclusive benefits and recognition
Access to subsidies and incentives	Recognition as a leader in sustainability	Contribution to national sustainability goals

Eligibility for ZED Certification

• Registration with UDYAM Portal: The MSME must be registered with the UDYAM Portal of the Ministry of Micro, Small and Medium Enterprises (MSME).
• Minimum Turnover: The MSME’s annual turnover should be at least Rs. 10 lakhs for Bronze certification, Rs. 50 lakhs for Silver certification, and Rs. 200 lakhs for Gold certification.
• Compliance with ZED Standards: The MSME must comply with the principles of Zero Defect Zero Effect (ZED), which emphasizes quality, environmental protection, and social responsibility.
• Submission of Application: The MSME must submit an online application form for ZED Certification and provide the necessary documents.
• Assessment: The MSME will be assessed by an accredited ZED Certification Body (ZCB) to determine its compliance with the ZED standards.
• Renewal of Certification: The ZED certificate will be valid for three years, after which the MSME must undergo a surveillance audit to maintain its certification

PROCESS OF ZED CERTIFICATE

1. Online Registration On ZED Portal
2. Enter valid Udyam & Mobile no.
3. Udyam validation through API 
4. Online payment of MSME contribution (if and as applicable)
5. ZED ID , password & Pledge Certificate issued 
6. ZED Pledge taken
7. MSME downloads mobile app for next steps
8. Basic info and documents submitted by MSME SPOC along with his/her selfie
9. Geo-tagging and real time data captured and Live Web Monitoring 
10. Case submitted to Master Admin 
11. Case allocated for assessment 
12. Case assessed by assessor
13. Case approved by assessor 
14. Non – conformances closed by MSME
15. Non conformances raised by assessor 
16.  Certificate & Report Generated

CERTIFICATION PROCESS

Assistance for ZED Certification

• MSMEs can avail financial assistance to cover the cost of ZED certification.
• The subsidy is available for all three levels of certification: Bronze, Silver, and Gold.
• The subsidy is capped at INR 50,000.
• Additional subsidies are available for Women/SC/ST Entrepreneurs and MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts.
• Applications for financial assistance can be submitted online through the ZED certification portal.

STAKEHOLDERS

Conclusion

ZED Certification offers a valuable opportunity for MSMEs to enhance their market access, improve product quality, strengthen their brand recognition, and contribute to a sustainable future. With the support of Government initiatives and training programs, MSMEs can successfully navigate the ZED certification process and reap the numerous benefits it offers.

{Link to Zed PPT }

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