MSME Zed

MSMEPCI

MSME Zed Certification

As the MSMEs are amongst the strongest drivers of economic development, innovation and employment, it becomes imperative to strengthen their ecosystem. The Government of India envisioned the Zero Defect Zero Effect (ZED) initiative to enhance MSME competitiveness, make them sustainable and transform them as National and International Champions.

MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate & incentivise them for ZED Certification while also encouraging them to become MSME Champions. 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, standardisation of products, processes, systems etc. in order to enhance their global competitiveness and sustainability. The ZED Certification aims at enhancing the competitiveness of an MSME through assessment, handholding, managerial and technological intervention etc., hence it is not just a Certification.

This Scheme is proposed to be implemented in 2 Phases:

Phase 1: For Manufacturing MSMEs with UDYAM Registration. This phase will focus largely on maximizing inclusion of manufacturing MSMEs and taking them through the journey of ZED.

Phase 2: Inclusion of Service Sector MSMEs. 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 operations/performance may be collected so as to create a National MSME Competitiveness Index.

In phase 2, it is also envisaged to provide funding to the ZED Certified MSMEs to obtain international certifications, as necessary for international market and further, making provisions to align ZED Certification with the international certifications for its global acceptance.

Objective

The ZED Certification envisages promotion of Zero Defect Zero Effect (ZED) practices amongst MSMEs so as to:

  • Encourage and enable MSMEs for manufacturing of quality products using latest technology, tools & to constantly upgrade their processes for achievement of high quality and high productivity with the least effect on the environment
  • Develop an Ecosystem for ZED Manufacturing in MSMEs, for enhancing competitiveness and enabling exports
  • Promote adoption of ZED practices and recognising the efforts of successful MSMEs
  • Encourage MSMEs to achieve higher ZED Certification levels through graded incentives
  • Increase public awareness on demanding Zero Defect and Zero Effect products through the MSME Sustainable (ZED) Certification
  • Identify areas to improve upon, thereby assisting the Government in policy decisions and investment prioritization

Components

  1. Industry Awareness Programmes/Workshop: MSMEs will be made aware of the MSME Sustainable (ZED) Certification through nation-wide awareness programmes (online and/or face-to-face, as appropriate) with the assistance of stakeholders like Industry Associations, Implementing Agencies, MSME-DIs, District Industries Centres (DICs), Large Enterprises/OEMs, BEE.
  2. Training Programmes: Stakeholders like the 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.
  3. Assessment & Certification: MSMEs will be assessed (desktop verification, remote assessment, onsite assessment; as applicable) and awarded relevant Certification Level for which they have applied for after fulfilling the requirements of that Level.
  4. Handholding: MSMEs will be provided handholding to help them achieve higher ZED Certification levels and also towards technology upgradation for moving towards zero effect solutions/pollution control measures/cleaner technology.
  5. Benefits/Incentives: Graded incentives will be announced by the Ministry of MSME for MSMEs so as to motivate them to achieve higher ZED Certification levels. These incentives will also include assistance to MSMEs in their preparedness & response to 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.
  6. PR campaign, Advertising & Brand Promotion: For popularizing the MSME Sustainable (ZED) Certification and brand promotion of ZED, a nation-wide publicity will be done.
  7. Digital Platform: MSME Sustainable (ZED) Certification process will be e-enabled through a single window digital platform and minimum use of paper.

ZED Certification Levels

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

ZED Pledge

  • Certification Level 1: BRONZE
  • Certification Level 2: SILVER
  • Certification Level 3: GOLD
    1. Every MSME that embarks on the journey of ZED will have to take a “ZED Pledge” before applying for a ZED Certification Level (Bronze, Silver, Gold).
    2. Certification on WASH Standard & other capacity building measures through MSME KAWACH will be available to MSMEs immediately after taking ZED Pledge.
    3. After taking the ZED Pledge, the MSME can apply for any Certification Level if it feels that it can fulfil 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

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

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