UP MSME 1-Connect

ZED Certification

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Enhancing participation and implementation of the ZED Scheme

Through ZED certification, the attempt is to improve MSME manufacturing systems & processes, enhance MSME competitiveness, make them sustainable, and transform them as National and International Champions. The ZED Scheme attempts to aware, assess & certify, counsel, handhold MSMEs and ensure that they rise up the ZED ladder, thus enhancing their competitiveness in the global marketplace and making them truly "atmanirbhar". The ZED Scheme focuses on establishing the manufacturing sector as an engine to sustained economic growth.

Objective

This intervention aims to increase public awareness of demanding Zero Defect and Zero Effect products through the MSME Sustainable (ZED) Certification workshops and motivating our MSMEs to adopt a quality-driven ecosystem.

How it works

ZED Certification Levels

ZED i.e. ZERO DEFECT ZERO EFFECT is a simple, transparent and affordable certification with 3 levels, Bronze, Silver & Gold, and is based on well-defined parameters of quality, safety, production, cleanliness, energy, environment and more.

ZED Certification Parameters

The aspiring MSME unit may register for bronze, silver, or gold ZED certification by implementing the parameters listed hereunder

ZED Certification Parameters - Manufacturing
S. No.	Parameters	Bronze	Silver	Gold	Parameter Exemptions for Existing Certifications
1	Leadership
2	Swachh Workplace
3	Occupational (Workplace) Safety				ISO 45001
4	Measurement of Timely Delivery
5	Quality Management				ISO 9001
6	Human Resource Management
7	Daily Works Management				MSME-Competitive (Lean) (Advance Lean Certification)
8	Planned Maintenance & Calibration
9	Process Control
10	Product Quality & Safety (Testing/Certification)
11	Material Management
12	Energy Management				ISO 50001
13	Environment Management				ISO 14001
14	Measurement and Analysis
15	Supply Chain Management
16	Risk Management
17	Waste Management (Muda, Mura, Muri)				MSME-Competitive (Lean) (Advance Lean Certification)
18	Technology Selection & Upgradation
19	Natural Resource Conservation
20	Corporate Social Responsibility

Benefits Of ZED Certification

ZED Certification is not just a certificate to prove that the business is following best practices, it also gives a fair idea to the workforce on how to improve their business outcomes. Here is an overview of the advantages of ZED.

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Incentives (Ministry Of MSME)

Ministry of Micro, Small & Medium Enterprises

1. Free (100% subsidy) ZED Certification for Women Owned MSMEs

Any number of Units (owned by Women) registered under one Udyam Registration can apply for subsidy under this Scheme

Ministry of Micro, Small & Medium Enterprises

2. FINANCIAL ASSISTANCE IN TESTING/SYSTEM/PRODUCT CERTIFICATION

For availing Testing OR Management Systems OR Product Certification, of upto 75% of the total cost of Certification, with the maximum ceiling of subsidy being Rs. 50,000/-.

Ministry of Micro, Small & Medium Enterprises

3. International Cooperation (IC) Scheme

Stall Charges subject to a maximum of Rs.3.50 lakh or actual rent paid, whichever is lower

Ministry of Micro, Small & Medium Enterprises

4. International Cooperation (IC) Scheme

Economy class airfare subject to a maximum of Rs. 1.75 lakh or actual fare paid, whichever is lower

Ministry of Micro, Small & Medium Enterprises

5. Freight charges under International Cooperation (IC) Scheme

Actuals subject to maximum of Rs. 50,000/- + Rs. 10,000/- per MSME unit and Rs. 75,000/- + Rs. 10,000/- per MSME for Latin American Countries.

Ministry of Micro, Small & Medium Enterprises

6. Joining Reward of Rs. 10,000/-

Joining reward of Rs. 10,000/- will be offered to each MSME once they take the ZED Pledge which needs to be utilized within a defined time period. This joining reward may be used by an applicant MSME only once while applying for a ZED Certi?cation (Bronze, Silver, Gold). This joining reward will be valid only for 1 year after taking the ZED Pledge.

Ministry of Micro, Small & Medium Enterprises

7. Subsidy on Cost of ZED Certification (80%, 60% & 50% for Micro, Small and Medium Enterprises, respectively)

Any number of Units registered under one Udyam Registration can apply for subsidy under this Scheme. Each Unit (under one Udyam Registration) will need to apply for Certification separately to avail subsidy/benefits/incentives. 80%, 60% & 50% for Micro, Small and Medium Enterprises, respectively.

Ministry of Micro, Small & Medium Enterprises

8. Additional Subsidy of 10% for the MSMEs owned by Women/SC/ ST Entrepreneurs OR MSMEs in NER/ Himalayan/LWE/Island territories/Aspirational districts

There will be an additional subsidy of 10% for the MSMEs owned by Women/SC/ ST Entrepreneurs OR MSMEs in NER/ Himalayan/LWE/Island territories /Aspirational districts

Ministry of Micro, Small & Medium Enterprises

9. Additional Subsidy of 5% on ZED Certification Cost for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) of the Ministry of MSME

There will be an additional subsidy of 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) of the Ministry of MSME

Ministry of Micro, Small & Medium Enterprises

10. Credit Guarantee Scheme

Increased Guarantee Coverage of 85% for ZED Certified MSEs

Ministry of Micro, Small & Medium Enterprises

11. Credit Guarantee Scheme

10% additional concession/relaxation in guarantee fee for ZED Certified MSEs

Financial Institution Incentives

North East Small Finance Bank

12. Waiver on Processing Fees and Interest Rate for MSMEs in Assam, Arunachal Pradesh, Sikkim, Meghalaya, Manipur, Mizoram, Nagaland, Tripura, West Bengal (Only North Bengal) States

Processing Fees Waiver - 0.15%, Interest Rate Waiver - 0.15%

ICICI Bank Limited

13. Waiver in processing fees

25% concession in processing fee is being provided to MSME clients post submission of ZED Certificate.

YES Bank Limited

14. Concession on the pricing

0.5% concession on the Processing Fees and Rate of interest

ESAF Small Finance Bank

15. Reduction in Processing fee

50% reduction in processing fee for all loan proposals from ZED certified units

ESAF Small Finance Bank

16. Reduction in interest rate

1% reduction from standard interest rate for ZED Certified Units

Fusion Microfinance Ltd

17. Discount in Processing Fees in Delhi, Haryana, Punjab, Rajasthan, Madhya Pradesh, Uttar Pradesh, Uttarakhand, Jharkhand, Gujarat and Bihar

Discount in Processing Fees up to 0.5%

Fusion Microfinance Ltd

18. Concession in Interest Rate in Delhi, Haryana, Punjab, Rajasthan, Madhya Pradesh, Uttar Pradesh, Uttarakhand, Jharkhand, Gujarat and Bihar

Concession in Interest Rate up to 0.5%

State Bank of India

19. Processing charges (Working Capital) / Upfront fees (Term Loan) & Rate of Interest

5% concession in processing charges/upfront fees 5 bps interest concession

Central Bank of India

20. Concession in Processing Fees and Rate of Interest

50 bps concession in Processing Fees

HDB Financial Services Ltd

21. Discount in Processing Fees

30% concession in Processing Fees

Bank of Maharashtra

22. Concession in Processing Fees and Rate of Interest

25% concession in processing fees, 25 bps concession in rate of interest

Bank of Baroda

23. Concession in Processing Charges & Concession in Rate of Interest

25% concession in processing charges

Bank of Baroda

24. Concession in Processing Charges & Concession in Rate of Interest

25% concession in Processing Charges and ROI concession of 25 bps (Subject to, applicable ROI is not below than BRLLR / MCLR+SP)

Federal Bank

25. Concession in Processing Fees and Concession in ROI

5% concession from the extant card rate and 20bps below the extant card rates

Canara Bank

26. Concessions in ROI and processing charges

1) Risk Rating of the unit (New/Existing), Internal Rating – CNR I to V (Minimal/LR), External Rating – AAA/AA/A, Concession in ROI- 0.10% and Concession in processing charges-10%; 2) Risk Rating of the unit (New/Existing), Internal Rating – CNR VI (NR), External Rating – BBB, Concession in ROI- 0.10% and Concession in processing charges-10%

Small Industries Development Bank of India (SIDBI)

27. Concession in Interest Rate & Processing/ upfront fees

5 bps in Interest rate and 5% in Processing/ upfront fees

UCO BANK

28. Concession in opplicable processing charges ond Rate of interest (RoI) for ZERO DEFECT ZERO EFFECT (ZED) Certified MSMEs

5% Concession in Processing Charges and 25 bps (0.25%) concession in rate of interest (ROI)

State Incentives

Railway Board, Ministry of Railways

29. Admissibility of discount schemes in freight rates for parcels

Powers to Zonal Railways to grant up-to 45% discount in freight rates on indented parcel trains and indented Parcel Vans in empty direction (vide FM Circular-26/2021 dated 22.11.2021)

For Agra: Abhishek Singh, Assistant Director, Email: abhisheksingh@dcmsme.gov.in. Contact No: 9555122599; For Kanpur: Sunil Kumar Agnihotri, Asstt.Director, Email: skagnihotrimsme@gmail.com, Contact No: 8299233545; For Allahabad: Prem Chand Kumar, Senior Statistical Officer (SSO), Email: prmkumar777@gmail.com, Contact No: 9369638169

Avail

Railway Board, Ministry of Railways

30. Admissibility of discount schemes in freight rates for parcels

Powers to decide the charging of non-leased parcel traffic in SLRs of intra-Railway trains with low utilization (vide FM Circular-03/2018 dated 24.01.2018)

Avail

Other Incentives

Railway Board, Ministry of Railways

31. Admissibility of discount schemes in freight rates for parcels

Powers to Zonal Railways to grant up-to 45% discount in freight rates on indented parcel trains and indented Parcel Vans in empty direction (vide FM Circular-26/2021 dated 22.11.2021)

Railway Board, Ministry of Railways

32. Admissibility of discount schemes in freight rates for parcels

Powers to decide the charging of non-leased parcel traffic in SLRs of intra-Railway trains with low utilization (vide FM Circular-03/2018 dated 24.01.2018)