How MSMEs in India Can Achieve ZED Bronze Certification?
The unique concept of ZED (Zero Defect Zero Effect) Certification is an initiative by the Ministry of Micro, Small & Medium Enterprises viz. MSME, Government of India, aimed at promoting quality manufacturing and environmental responsibility among Indian MSMEs. The certification not only helps businesses improve their processes and quality standards but also makes them globally competitive. In this blog, weโll explore the ZED Certification at the Bronze Level, covering how to apply, the process, benefits, assessment, eligibility, time period, fees, validity, and other key aspects in simple words.
What is ZED Certification?
ZED Certification is part of the โMSME Sustainable (ZED) Certification Scheme,โ which promotes zero defects in products and zero effects on the environment. It is a maturity assessment model with three levels of certification:
This blog focuses on the Bronze Level, which is the first and basic certification that encourages MSMEs to adopt quality management, workplace safety, and environmental consciousness.
Eligibility Criteria for ZED Certification (Bronze Level)
The ZED Certification is open to all MSMEs registered with the Udyam Registration Portal. The applicant unit must:
- Be operational and functioning at the time of application.
- Have a valid Udyam Registration Number.
- Be compliant with basic legal and regulatory requirements.
There are no sectoral or regional restrictions, making this certification open to all MSMEs.
Benefits of ZED Certification (Bronze Level)
Getting ZED certified brings numerous advantages for MSMEs:
1. Quality Enhancement: Encourages improved production standards and efficient processes.
2. Credibility Boost: A certified MSME gains the trust from buyers, vendors and investors.
3. Government Incentives: Access to financial support, subsidies, and benefits under various MSME schemes.
4. Environmental Compliance: It helps to encourage sustainable practices that reduce environmental impact.
5. Export Readiness: Enables the unit to operate in line with global standards as prescribed, improving both export opportunities and manufacturing efficiency.
6. Technology Upgradation: Incentivizes the use of modern tools and technology to lean manufacturing practices.
7. Training and Guidance: Eligible for government-sponsored training and awareness programs.
8. Access to Additional Subsidies:
- Up to 75% subsidy (max โน50,000) for product testing and certification.
- โน2 lakh support for consultancy/handholding post-certification.
- โน3 lakh support for technology upgradation to adopt zero-effect solutions.
How to Apply for ZED Certification (Bronze Level)?
Hereโs a step-by-step process to apply:
Step 1: Register on the ZED Portal
- Visit the official ZED portal: https://zed.msme.gov.in/
- Click on โApply for ZED Certificationโ
- Log in using your Udyam Registration Number and linked mobile number/email.
- Also, take the ZED Pledge and claim the โน10,000 joining reward (must be used within 1 year).
Step 2: Complete Profile Details
- Fill in company details like name, location, business activity, employee count, and other relevant details etc.
- Upload relevant documents such as GST certificate, factory license, pollution control certificate, etc.
Step 3: Self-Assessment
- Complete the self-assessment questionnaire provided on the portal.
- The questionnaire includes parameters related to quality, safety, environment, energy efficiency, and process control.
- Based on responses, the system will generate an indicative ZED rating.
Step 4: Apply for Certification
- Submit your application along with the necessary documents.
- Choose โBronzeโ level while applying.
Step 5: Assessment by ZED Accredited Agencies
- A ZED-accredited third-party agency is assigned to carry out a physical verification.
- The agency validates the claims made during the self-assessment and prepares a detailed report.
Assessment Criteria at Bronze Level
Assessment for the Bronze Level Certification is relatively simple and primarily focuses on:
- Basic quality and safety systems
- Workplace hygiene
- Waste disposal methods
- Energy usage monitoring
- Legal and regulatory compliance
It ensures that the unit has adopted minimum quality and environmental standards and is ready to scale up further.
Fee Structure for ZED Certification (Bronze Level)
The certification fee is subsidized for MSMEs by the Government:
- Base Application Fee (before subsidy): โน10,000 (approx.)
Subsidy Structure:
- Micro Enterprises: 80% subsidy
- Small Enterprises: 60% subsidy
- Medium Enterprises: 50% subsidy
- Additional Subsidies:
a) Extra 10% for Women/SC/ST/NER/Himalayan/LWE/Island/aspirational district MSMEs
b) Extra 5% for MSMEs under cluster programs (e.g., SFURTI, MSE-CDP)
Example:
A micro enterprise may pay only โน2,000 (after applying 80% subsidy) โ and this may be offset fully if the โน10,000 joining reward is utilized.
Time Period for Certification
The entire certification process takes approximately 15 to 45 days, depending on:
- Timely submission of documents
- Availability of assessment agency
- Completion of site verification and report generation
Validity of Bronze Level Certification
The ZED Bronze Level Certification is valid for 3 years from the date of issuance. However, MSMEs are encouraged to upgrade to silver or gold levels within this period by adopting higher standards.
Government Support and Incentives
Under the MSME Sustainable ZED Certification scheme, the following support is available:
- Assessment Subsidy: As mentioned above.
- ZED Pledge Reward: โน10,000 reward upon pledge; valid for one year to offset certification costs.
- Handholding Support: Assistance in preparing for assessment, documentation, and compliance (up to โน2 lakh).
- Training and Workshops: Free and low-cost training for quality and environmental awareness.
- Technology Assistance: Up to โน3 lakh financial aid for zero-effect solutions.
- Testing/Product Certification Subsidy: Up to โน50,000 reimbursement.
- Access to Subsidized Loans: Some banks may prioritize or offer benefits to ZED-certified units.
Documents Required for ZED Application
Keep the following documents ready before applying:
- Udyam Registration Certificate
- GST Registration Certificate
- Factory License / Shop Act License
- PAN Card of Enterprise
- Pollution NOC (if applicable)
- Quality certifications (if available)
- Electricity bill
- Bank details
- Photographs of unit
Key Points to Remember
- Bronze is the first and foundational level of ZED.
- No external consultant is necessary, as the portal guides you step-by-step.
- Units are encouraged to aim for silver and gold levels after achieving Bronze.
- Government is actively supporting ZED through incentives and schemes.
- MSMEs can also apply for re-certification after the validity period ends or in case of major changes in the unit.
Conclusion
The ZED Certification at the Bronze Level is a golden opportunity for MSMEs in India to adopt global best practices, improve quality, and reduce environmental impactโall while gaining recognition and financial support from the government. It is simple to apply, cost-effective, and highly beneficial in the long run. MSMEs should take full advantage of this initiative to grow sustainably and make India a hub of quality manufacturing. If you need professional assistance then do contact to CRSPL Business Consultants.
If you need help applying or want to know more about moving to silver or gold level certification, the ZED helpdesk and local MSME offices can guide you through the process. Start your journey to zero defect and zero effect today.
FAQs
Q1. Is ZED Certification mandatory for MSMEs?
No, ZED Certification is not a mandatory process. It is purely voluntary process, introduced by the Government of India to help MSMEs improve product quality, process efficiency, and environmental compliance. However, getting certified brings multiple benefits, including government incentives and increased market credibility.
Q2. Can an MSME apply for ZED Certification without any prior quality certification like ISO?
Yes, an MSME can apply for ZED Bronze Level Certification without any prior certification. The Bronze level is designed as an entry point for units beginning their journey towards quality and sustainability. Prior certifications are not mandatory but can support the assessment process.
Q3. How can an MSME upgrade from Bronze to Silver or Gold level?
After achieving Bronze Level Certification, an MSME can apply for an upgrade through the ZED portal by meeting additional requirements related to process control, energy efficiency, waste management, and customer satisfaction. The unit must undergo a fresh assessment for the higher level by an accredited agency.