Nilanjan
MSMEs are the backbone of the Indian economy, contributing to more than 30% of the GDP, 45% of the exports, and 48% of the employment. However, MSMEs also face many challenges such as low productivity, poor quality, high energy consumption, and environmental pollution. To overcome these challenges and enhance the competitiveness of MSMEs in the global market, the government of India has launched the MSME Sustainable (ZED) Certification Scheme in April 2022.
The ZED Certification Scheme is an initiative to create awareness among MSMEs about zero defect-zero effect (ZED) practices and motivate and incentivize them for ZED certification while also encouraging them to become MSME champions. The scheme is based on the vision of Prime Minister Narendra Modi, who urged the MSMEs to manufacture goods with zero defects and zero effects on the environment in his Independence Day speech in 2014.
The ZED Certification Scheme is implemented by the Quality Council of India (QCI), an autonomous body under the Ministry of Commerce and Industry, in association with the Ministry of MSME. The scheme covers all manufacturing MSMEs irrespective of their sector, size, or location. The scheme provides financial assistance, handholding support, training programmes, and other incentives to MSMEs for adopting ZED practices and achieving ZED certification.
The ZED Certification Scheme has received a positive response from the MSME sector, as it has crossed the 10,000 registration milestone within 15 months of its launch. According to a tweet by the Union Minister of MSMEs Narayan Rane, “MSME ZED certification scheme crosses 10,000 registration mark. Launched in April 2022, the success of the MSME ZED certification scheme reflects our firm commitment towards the visionary call of Zero Defect and Zero Effect Manufacturing by Hon’ble PM Shri Narendra Modi ji.”
What are ZED practices?
ZED practices are a set of principles and techniques that aim to achieve excellence in manufacturing by eliminating defects and reducing waste, energy consumption, and environmental impact. ZED practices are based on various national and international standards and frameworks such as ISO 9001, ISO 14001, ISO 50001, Lean Manufacturing, Six Sigma, Total Quality Management, etc.
ZED practices cover five dimensions: quality, environment, energy, social responsibility, and safety. Each dimension has several parameters that measure the performance of an MSME on various aspects such as customer satisfaction, product quality, process efficiency, resource utilization, waste management, emission control, occupational health and safety, labour welfare, etc.
How to get ZED certification?
ZED certification is a process of assessing and rating an MSME on its level of compliance with ZED practices. ZED certification can be attained on three levels: bronze, silver, and gold. Each level has different requirements and benefits for the MSMEs. The process of getting ZED certification is as follows:
- Register yourself: You can register yourself for ZED certification online on the official website of PM-KISAN https://pmkisan.gov.in/ or visit your nearest Common Service Centre (CSC) or local revenue office or panchayat office. You need to provide your Aadhaar card and bank passbook along with your application form.
- Update your e-KYC and land verification: You need to update your e-KYC and land verification on the PM-KISAN portal or through biometric-based e-KYC at CSC or revenue office or panchayat office. e-KYC is a process of verifying your identity and address using your Aadhaar card. Land verification is a process of verifying your land ownership and area using the land records of the concerned state or UT.
- Choose your certification level: You can choose your certification level (bronze, silver, or gold) based on your readiness and aspiration. You need to conform to all the requirements of the level you have chosen in order to get certified.
- Pay the certification fee: You need to pay a nominal fee for getting certified depending on your level. The fee for bronze certification is Rs 10,000; for silver certification is Rs 40,000; and for gold certification is Rs 90,000. The scheme provides financial assistance of up to 75% of the total cost of testing/certification with a maximum subsidy ceiling of Rs 50,000.
- Get assessed by accredited agencies: You will be assessed by accredited assessment agencies appointed by QCI on various parameters of ZED practices. The assessment will be done through online self-assessment questionnaire (SAQ), desktop assessment (DA), onsite assessment (OA), and third-party validation (TPV).
- Receive your certificate: Based on the findings and recommendations of the assessment agencies, you will receive your ZED certificate from QCI. The certificate will be valid for three years from the date of issue.
What are the benefits of ZED certification?
ZED certification has many benefits for MSMEs, such as:
- Improved productivity and quality: ZED practices help MSMEs to improve their productivity and quality by eliminating defects, reducing rework and rejection, enhancing customer satisfaction, and increasing market share.
- Reduced energy consumption and cost: ZED practices help MSMEs to reduce their energy consumption and cost by optimizing their resource utilization, adopting energy-efficient technologies, and implementing energy management systems.
- Reduced environmental impact: ZED practices help MSMEs to reduce their environmental impact by minimizing waste generation, recycling and reusing materials, controlling emissions and effluents, and complying with environmental regulations.
- Enhanced social responsibility: ZED practices help MSMEs to enhance their social responsibility by ensuring occupational health and safety, providing fair wages and benefits, respecting labour rights, and contributing to community development.
- Increased competitiveness and recognition: ZED certification helps MSMEs to increase their competitiveness and recognition in the domestic and international markets by demonstrating their commitment to excellence, innovation, and sustainability. ZED certification also helps MSMEs to avail various incentives and benefits offered by the government and other stakeholders.
Conclusion
MSME Zed certification scheme is a great opportunity for MSMEs to adopt ZED practices and achieve ZED certification. By doing so, MSMEs can not only boost their business performance and profitability, but also protect the environment and society. ZED certification is a mark of excellence that can help MSMEs to stand out from the crowd and become MSME champions.
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