ZED Certification: Fees, Benefits & Process For MSMEs

MSMEs play vital role in the nation, they bring development, employment, and productivity in the nation. In order to support MSMEs the Indian Government envisioned the Zero Defect and Zero Effect scheme, is also recognized as ZED.

Zero Defect Zero Effect means that the goods should be manufactured in such a way that it should carry zero defects and are never returned due to the quality parameters and should support sustainable development. ZED is valid for the 3 years from the date of issuance of the certificate.

Its aim is to encourage the small, medium and large-scale businesses. This scheme will be a great revolution for MSMEs that must boost the industry and give new raise of development. Do you want to know more about that such as ZED certification fees, benefits, eligibility and process? This blog is perfect for you, we support all the MSMEs for sustainable growth.

Behind the establishment of ZED is to spread awareness for all MSMEs and encourage them for ZED certificate. So that they can avail of all the incentives/advantages of the scheme and turn out to be champions. Through this scheme Government will motivate businesses to reduce wastage, increase productivity, save energy, optimize natural resources and expand the market. It will enhance global competitiveness and make India hub for the manufacturing process.

Zero Defect Zero Effect Scheme has to be implemented in 2 phases that are mentioned below:-

Phase 1:- This phase is dedicated to all the MSMEs, which are involved in the manufacturing process and registered with UDYAM. It will focus on the manufacturing business and help them expand the roots through ZED certificate.

Phase 2:- The phase 2 is concentrated towards manufacture and service sector, which are registered under State Government Protocol. But they are not registered with UDYAM, through ZED certificate, MSMEs will be eligible to get funding and more benefits from Government.

Objective of ZED Certification

• Quality Manufacturing and Environmental Sustainability
• Ecosystem development for MSMEs to enhance their competitiveness.
• Promote the adoption of ZED practices and recognize the efforts of MSMEs.
• Encourage the MSMEs to strive for higher ZED certification levels by offering them graded incentives.
• Increase the public awareness about the importance of the ZED products under ZED program.

ZED Certification Levels

All the MSMEs are eligible to get ZED certification in 3 levels after they got registered with Zero Defect and Zero Affect Scheme, these levels are:-

• Certification level 1:- BRONZE
• Certification level 2:- SILVER
• Certification level 3:- GOLD

Every MSME that joins ZED in its journey first will have to take the ZED Pledge, before they can ZED certification. After ZED pledge, the certification on WASH standards and other capacity establishment measure by MSME KAWACH will be available to MSMEs instantly.

After obtaining the ZED Pledge, MSMEs are eligible to apply for any level of certification, if they make sure MSME can meet the requirement, mentioned in the all the level of certification. The motive of the ZED pledge is to take pre-commitment to hold the value of ZED certification work effectively and efficiently.

ZED Certification Eligibility

All the MSMEs, which are registered with UDYAM Registration are eligible to get ZED certification and obtain all the benefits.

ZED Certification Process

1. Online registration on ZED portal https://zed.msme.gov.in/
2. Enter the valid UDYAM ID and Mobile No.
3. Udyam validation can be processed.
4. Before ID creation, you need to take ZED pledge.
5. ZED Application occurred on your dashboard.
6. Submit the application with all the details required and documents asked on the portal.
7. After this, make online payment for the level of ZED in which you wants to be registered.
8. Your case will be allotted for the assessment to the assessor.
9. Assessor raise some objection or approve the same.
10. Certificate and report generate.

Ministry of MSME holds a right to visit the ZED certified MSME for the physical inspection, which received any benefit, subsidy or incentive under this scheme.

Zero Defect and Zero Affect Handholding

Under ZED certification schemes MSMEs, which at least have BRONZE certificate, are eligible to get handholding up to Rs. 5 Lakh per MSME in order to support them for Zero Defect and Zero Affect solutions. Out of this amount, Rs. 2 Lakh has to be utilized for consulting organizations as handholding and remain Rs. 3 Lakh has to be utilized to improve technology towards ZED /sustainability/pollution control and cleaner technology. 

Utilization of Rs. 3 Lakh is subject to the consultant’s recommendation, verified by respective MSME-DI and approved by PMAC. The ministry will also provide subsidy for handholding support and technology upgradation for moving towards Zero Defect and Zero Affect, as follows:-

• Micro-80%
• Small- 60%
• Medium- 50%

There are some additional subsidies under ZED scheme:-

• All the MSMEs, which are owned by women, SC, ST or MSME in NET/ Himalayan/ LWE/ Island territories and aspirational districts, would be entitled to get 10% additional subsidy.
• After above addition, there will be 5% additional subsidy for MSMEs, which are part of SFURTI or Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) of the Ministry.

ZED Certification Fees

Fees for ZED certification varies on the level of certification, we have mentioned below for better understanding:-

1. Bronze: Government fees is approx. 10000/-
2. Silver: Government fees is approx. 40000/-
3. Gold: Government fees is approx. 90000/-

Renewal of ZED Certification after Expiry

After your ZED certificate gets expired, MSME can go for a renewal of its ZED certification level in order to get all the incentives under this scheme. ZED certificate validity is about 3 years.

Start Your Journey with CRSPL Business Consultants

If you want to avail all the benefits and subsidies of ZED certification, engage your MSME now with ZED certification. Start your process today with the help of CRSPL Business Consultants, they will assist you at every single step. Let’s upgrade your MSME and connect with the Zero Defect and Zero Affect Scheme.