In today's time, Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India's economy. To thrive and compete globally, embracing quality, sustainability and efficiency is paramount. This is precisely where the MSME Sustainable (ZED) Certification initiative comes in. For a seamless and effective journey towards ZED certification, partnering with experts like Praman Advisors Private Limited can make all the difference.
1. Overview: What is MSME Sustainable (ZED) Certification?
The ZED (Zero Defect Zero Effect) Certification is a transformative initiative by the Ministry of MSME, Government of India. The main aim of this is to sensitize MSMEs to the principles of "Zero Defect" in their products and processes and "Zero Effect" on the environment. It is not just a certification; it is a comprehensive framework designed to elevate MSMEs to global standards of quality, productivity and environmental responsibility.
The ZED journey helps MSMEs achieve:-
- Reduced Wastage: Minimizing defects and inefficiencies in production.
- Heightened Productivity: Optimizing processes for better output.
- Increased Environmental Consciousness: Promoting sustainable practices.
- Energy Savings: Efficient utilization of resources.
- Optimal Utilization of Natural Resources: Responsible consumption and impact.
The ZED Certification is issued in two phases:-
- Phase I (Manufacturing MSMEs): Focuses on manufacturing MSMEs with Udyam Registration, aiming for maximum inclusion and guiding them through the ZED journey.
- Phase II (Service Sector MSMEs & ZED Exports): Includes service sector MSMEs and those registered under State Government. This phase also aims to integrate ZED Certification with international certifications (like CE) for global acceptance and create a National MSME Competitiveness Index.
Obtaining ZED certification offers a multitude of tangible and intangible benefits for your MSME:-
- Enhanced Competitiveness: By adopting ZED principles, MSMEs can produce high-quality, defect-free goods, making them more competitive in both domestic and international markets.
- Financial Incentives & Subsidies: The government offers significant financial support to ZED-certified MSMEs including:-
- Joining Reward: ₹10,000 upon taking the ZED Pledge.
- Certification Cost Subsidy: 80% for Micro, 60% for Small and 50% for Medium Enterprises on the certification fees.
- Additional Subsidies: 10% for Women/SC/ST owned MSMEs or those in North Eastern Region/Himalayan/LWE/Island territories/aspirational districts and 5% for MSMEs in SFURTI or MSE-CDP clusters.
- Financial Assistance for Testing/Product Certification: Up to 75% of the cost (maximum ₹50,000).
- Handholding Support Subsidy: Up to ₹2,00,000 for consultancy for ZED-certified MSMEs.
- Technology Upgradation Support: Up to ₹3,00,000 for implementing Zero Effect solutions.
- Market Expansion: ZED certification signals reliability and quality, opening doors to new markets and export opportunities.
- Improved Operational Efficiency: Drives continuous improvement in work culture, product standardization and process optimization.
- Credibility & Reputation: Establishes your business as a responsible enterprise committed to quality and sustainability, attracting investors and customers.
- Easier Access to Finance: ZED certification is being incorporated into credit rating criteria by credit bureaus, potentially leading to better credit ratings and more favorable loan terms from banks.
- Government Policy Influence: Provides a platform for identifying areas of improvement, assisting the government in making informed policy decisions and prioritizing investments for the MSME sector.
To apply for ZED certification, MSMEs generally need to prepare the following documents:-
- Udyam Registration Certificate: Mandatory for all eligible MSMEs.
- PAN Card: Of the enterprise and/or proprietor/partners/directors.
- GST Registration Certificate: If applicable.
- Business Address Proof: Such as rent agreement, electricity bill, or ownership deed.
- Contact Information: Name, phone number and email ID of the point of contact.
- Organizational Chart: Depicting the company structure.
- Quality Policy & Management Procedures: Documents outlining the organization's commitment to quality and the steps taken to ensure it.
- Environmental Management System (EMS) Documentation: Procedures and records related to environmental impact reduction.
- Energy Management System (EnMS) Documentation: Procedures and records related to energy efficiency.
- Safety Management Documentation: Records related to workplace safety.
- Human Resource Management Documentation: Records pertaining to employee welfare and training.
- Records of Quality Audits: Documentation of internal or external audits.
- Records of Corrective and Preventive Actions (CAPA): Taken in response to non-conformities.
- Bank Account Details: For receiving subsidies.
- Other Supporting Documents: Depending on the chosen ZED level (Bronze, Silver, Gold) and specific assessment parameters.
Praman Advisors can provide a tailored checklist and assist in compiling all necessary documentation to ensure a smooth application.
The ZED certification process is largely online, designed for convenience. Praman Advisors simplifies each step for you:-
- ZED Pledge: Every MSME must first take the "ZED Pledge" on the official MSME ZED portal, signifying their commitment to Zero Defect Zero Effect principles. This is a crucial pre-commitment.
- Online Application & Selection of Level: After taking the pledge, MSMEs can apply online for their desired certification level: BRONZE, SILVER or GOLD. Praman Advisors will guide you in selecting the appropriate level based on your current practices and goals.
- Self-Assessment & Document Submission: The MSME completes a self-assessment questionnaire online, providing details and uploading necessary documents. Praman Advisors assists in accurately filling out these forms and ensuring all required documents are attached.
- Fee Payment: The applicable government fees are paid online.
- Assessment by Accredited Agencies: An Accredited Assessment Agency (like those recognized by QCI) will conduct an assessment. This may involve a desktop review and for higher levels, an onsite inspection to verify adherence to ZED parameters.
- Rectification of Non-Conformities: If any non-conformities are found during the assessment, the MSME will be given a definite timeframe to rectify them. Praman Advisors can provide guidance on addressing these issues.
- Issuance of ZED Certificate: On successful assessment and on rectification of any non-conformities.
Post-Certification Compliance & Support: Praman Advisors can also help with ongoing compliance, tracking benefits and preparing for future upgrades to higher ZED levels
The fees for ZED certification are structured based on the chosen level and the size of the enterprise, with substantial government subsidies available.
Government Fees (before subsidy):-
- BRONZE: ₹10,000.
- SILVER: ₹40,000.
- GOLD: ₹90,000.
Subsidies:-
- Micro Enterprises: 80% subsidy on certification cost.
- Small Enterprises: 60% subsidy on certification cost.
- Medium Enterprises: 50% subsidy on certification cost.
- Additional subsidies as mentioned in Section 2 (e.g., for women-owned MSMEs).
Professional Fees: Praman Advisors Private Limited provides comprehensive support throughout the ZED certification process. Their professional fees are separate from the government fees and depend on the complexity of your business and the chosen certification level.
For a personalized quote and to discuss your specific needs, please contact:-
- Rekha Atri: 📞 +91 98118 03136
- Manju Laur: 📞 +91 97119 94042
Timelines: The entire ZED certification process from application to certificate issuance typically takes 04 to 08 weeks, assuming all documents are in order and the MSME is responsive to queries or non-conformities. Praman Advisors' expertise helps expedite this process, ensuring minimal delays.
Frequently Asked Questions
No, ZED Certification is a voluntary scheme. However, given the significant benefits and subsidies, it is highly recommended for MSMEs looking to enhance their competitiveness and sustainability.
The ZED certificate is generally valid for a period of three years, after which re-assessment and renewal are required.
Currently, Phase 1 primarily focuses on manufacturing MSMEs with Udyam Registration. However, Phase 2 is planned to include service sector MSMEs. It is advisable to check the latest scheme guidelines or consult Praman Advisors for current eligibility.
If non-conformities are identified, you will be given a specific timeframe to implement corrective actions. Praman Advisors can guide you through this process to ensure successful rectification.
Praman Advisors offers end-to-end support, including:-
• Initial consultation and eligibility assessment.
• Documentation preparation and review.
• Online application submission.
• Guidance on self-assessment.
• Coordination with Accredited Assessment Agencies.
• Assistance in addressing non-conformities.
• Tracking of subsidies and financial benefits.
• Post-certification compliance advice.
The ZED Pledge is a pre-commitment by the MSME to uphold the values of Zero Defect Zero Effect in their practices. It is the first step in the ZED journey and is taken online on the official portal.
By embracing ZED Certification with the expert support of Praman Advisors Private Limited, your MSME can not only achieve operational excellence and environmental responsibility but also unlock new avenues for growth and global recognition.
