Ease of Doing Business for MSMEs: The Zero Defect-Zero Effect (ZED) scheme, which was implemented by the government for MSMEs during the 12th five-year plan (2012-17) to create awareness around ZED manufacturing and encourage them for assessment of their business for ZED, has registered 23,236 MSMEs since inception, according to the data available on the ZED portal. “ZED parameters are being simplified to onboard more than one million MSMEs on ZED journey. All industry associations and technical institutions are being on-boarded for wider access to the scheme,” the MSME ministry said in its 2019 year-end review published on Tuesday.
While the government had announced the scheme in July 2017, only 2.3 per cent (23,236) of 1 million MSMEs have registered themselves with the scheme. However, the number of registered MSMEs are out of the total 25,873 MSMEs that have participated in 628 awareness programmes for ZED. This perhaps indicates a low awareness level among MSMEs for the scheme. ZED rates MSMEs on 50 parameters with minimum 30 parameters while each parameter has five levels.
The certification accounts for processes with respect to production, quality, design, safety, environmental, energy, natural resources, human resource etc. MSMEs are rated between bronze (lowest rating), silver, gold, diamond and platinum (highest rating). The government had allocated Rs 491 crore during the 12th five-year plan.
MSME ministry also said that the Lean Manufacturing scheme, which is aimed at reducing ‘waste’ in manufacturing by improving the manufacturing competitiveness of MSMEs through deploying different lean manufacturing techniques, has been implemented in 267 MSME clusters across India “through Quality Council of India (QCI) and National Productivity Council (NPC). State Governments, Industry Associations have also been on-boarded to take the scheme to more MSME clusters.”
The government claimed 65,312 micro enterprises being set up in 2019 with 5,22,496 employment opportunities generated under the government’s credit-linked subsidy scheme Prime Minister’s Employment Generation Programme (PMEGP). The ministry had also approved incubation centres for over 200 technical institutions, industry associations, social enterprises to invest in startups. “Seed capital up to Rs. 1 crore have been provided to startup entrepreneurs under the scheme,” while over Rs 135 crore are have been sanctioned under the Entrepreneurship Skill Development Programme (ESDP) for organising skill development programmes along with state government, industry bodies, social enterprises etc to encourage entrepreneurship among the youth.