Objectives of the Scheme

The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement supporting the Make in India initiative. The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs so as to

·      Promote adaptation of Quality tools/systems and Energy Efficient manufacturing, Encourage MSMEs to constantly upgrade their quality standards in products and processes,

·      to drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.

·      Enable MSMEs for manufacturing of quality products.

·      Encourage MSMEs to constantly upgrade their quality standards in products and processes.

·      Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.

·      Support ‘Make in India’ campaign.

·      Develop professionals in the area of ZED manufacturing and certification.

Eligibility to apply for the scheme

All MSMEs registered under MSME Act, 2006 as amended from time to time and also to MSMEs which are included as per executive orders issued by AS & DC (MSME) in consistent with MSME Act from time to time.

Nature of assistance

·            Assessment/Rating by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 10,000/-& Rs 80,000/- per enterprise respectively for Desktop Assessment and ZED rating Complete Assessment).

·            Additional rating for Defence angle i.e. Defence ZED by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40,000/- per enterprise.

·            Gap Analysis, Handholding, Consultancy for improving rating of MSMEs by Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI, MSME-TC including its autonomous bodies, BEE etc. (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Consultancy charges: average 70% of Fee) (Hand holding charges Rs. 1.9 Lakh per enterprise whereas in case of MSMEs owned by SC/ST entrepreneurs additional support of Rs 10,000/- will be provided.

·            Re-Assessment/Re-Rating by Credit Rating Agencies & Other Agencies (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40000/- per enterprise.

Government Subsidies

The subsidies provided by the government under this scheme are as follows:

·            Micro enterprises: 80%

·            Small enterprises: 60%

·            Medium enterprises: 50%

·            An additional subsidy of 5% is provided to MSMEs that are owned by women in the SC/ST category.

·            An additional subsidy of 5% is provided to MSMEs located in northeast India and J&K.

ZED – Zero Defect Zero Effect

The ZED scheme is an integrated and comprehensive certification system that will account for productivity, quality, pollution mitigation, energy efficiency,  financial status, human resource and technological depth including design and IPR in both products and processes.

Vision

The vision of ZED is to enable the advancement of our industry to a position of reputation in the global marketplace and leverage India’s emergence as the world’s supplier through the Made in India mark.

Mission

Its mission is to develop and implement the ‘ZED’ culture in India based on the principles of Zero Defect & Zero Effect

Zero Defect

• The Zero defect concept is focusing on the customer.
• Zero non-conformance or non-compliance
• Zero waste

Zero Effect

• Zero air pollution, liquid discharge, solid waste
• Zero wastage of natural resources

Benefits for ZED rated MSMEs

The benefits for ZED rated MSMEs is explained in detail below:

• The ZED rated MSME will get 0.5% interest rate on the concession on loans
• The ZED rated MSME will also get 50% concession in processing fee
• The Government provides Rs.25 lakhs for adopting technology
• The Government provides Rs.25 lakhs for setting up of new ETP
• Rs.10 lakh for domestic patent and Rs.20 lakhs for international patent registration
• Rs. 5 lakhs for purchase of testing equipment
• Rs.10 lakhs for ZED certification and handholding
• Extra 80%, 60%, and 50% subsidy on the cost of ZED certification in addition to the subsidy provided by the Government of India