Launched in October 2016 by Prime Minister Narendra Modi and revamped in April 2022 to encourage MSMEs to improve their manufacturing quality, the Zero Defect, Zero Effect (ZED) scheme aims to help MSMEs reduce wastage in their manufacturing process, enhance their environmental consciousness, save energy, and expand their markets.
MSMEs are allowed to apply for three levels bronze, silver and gold and assessed as per the parameters involved at every level. The scheme has 20 overall parameters including leadership, workplace hygiene, workplace safety, quality management, HR management, energy and environment management, risk management, waste management, corporate social responsibility (CSR), and more. MSMEs have to comply with all 20 parameters for gold certification while silver certification requires compliance on 14 parameters and five for bronze certification.
The charges for certification, valid for three years, are Rs 10,000 for bronze certification, Rs 40,000 for silver certification, and Rs 90,000 for gold certification. However, the cost is subsidized by 80 per cent for bronze-certified manufacturers, 60 per cent for silver-level MSMEs, and 50 per cent for gold certification holders.
Below is the online process for applying for ZED certification:
- Visit zed.msme.gov.in and click on ‘Register Now’ under ‘ZED Certification’
- Validate with your Udyam registration number and mobile number linked to it and click on ‘Proceed’
- Select the plant unit for which you seek certification and click on ‘Confirm & Proceed’
- Enter your email ID, confirm your Unit Location and Associated Plant Activity and click on ‘Proceed to Pledge’
- Click on ‘I/We Pledge’ in the next window
- Your registration for the certification is successful. Click on ‘Go to Login’ to log in again with your ZED ID, password and the pledge certificate shared on your email ID
- Your pledge certificate will have your unit name and its address, Udyam number, date of taking the pledge, QR code and certification number
- Click on ‘Bronze Certification’ to apply for the bronze-level certification
- Accept the disclaimer and click on ‘Proceed’
- Share your GST and TAN number and click on ‘Apply Reward’ to avail of a joining reward worth Rs 10,000 which will be deducted from your total cost of certification and then click on ‘Proceed to Pay’
- After payment, click on ‘Start Certification Process’
- Login again with your ZED id and password> click on My Certification> click on the right arrow under the Bronze Certification box
- Click on ‘Basic Information & Document Upload’ and then click on ‘Accept & Proceed’
- Click on ‘Submit’ in the next window and upload relevant documents, pictures, etc
- After the submission of documents, the request is allocated to the assessor for verification
- You will get the email for the submission of documents and information
- In case there are no issues found in the information submitted, the email carrying the assessment report and bronze certification will be shared via email
According to the data available on the scheme’s portal, 3.38 lakh MSMEs have registered for certification, of which 2.11 lakh have received bronze certification, 837 have received silver certification and gold-certified MSMEs are 1,296. The financial support extended is Rs 266 crore.