Govt Rolls Out New Version Of MSME Sustainable Certification Scheme

While scaling the small and medium business, every entrepreneur wants to reduce the cost of production, wastage as well as increase the production in a cost effective manner and when entrepreneurs reach the stage where their businesses run effectively, it gives more profit for a longer period.

Every business needs capital and most of them get winded due to the lack of adequate capital to run the business for a longer period of time. If you want to start a business and want it to increase its reach to the market along with the product, now you have the opportunity to grab.

The central government has come up with a new version of MSME Sustainable (ZED) Certification Scheme to provide a roadmap to global competitiveness for Indian MSMEs.

Under this scheme, the government will help MSMEs to adopt Zero Defect and Zero Effect (ZED) practice and incentive them for ZED certificates.

The Ministry will also provide INR 5 lakh to the MSMEs for consultancy support under the certificate and help them move towards the ZED solution.

Through this certification, the MSMEs can reduce wastage, increase production while saving energy, become more conscious about the clean environment and expand the marketplace.

Under this scheme micro enterprises will get 80 per cent subsidy on cost of ZED certification followed by small and medium enterprises 60 per cent and 50 per cent respectively.

The incentives, benefits and other provisions in the scheme will be valid till March 31, 2026.

Earlier, the scheme was launched by Prime Minister Narendra Modi in October 2016 where he urged all the Micro Small Medium Enterprises to adopt such practice in the production that has ‘zero effect’ on the environment and manufacture products having ‘zero defect’ in the country.

Now the scheme has been re-launched by the union minister for MSMEs Narayan Rane recently to increase the competitiveness among small businesses.

Objective of (ZED) certification scheme:

Under this scheme the government aims to encourage MSMEs to adopt the time and cost effective production practice using the latest technology and tools.

Through this, the government is promoting adoption of ZED practice and recognise the successful enterprises that have adopted it and became certified.

It aims at Identifying areas to improve upon, thereby assisting the government in policy decisions and investment prioritization.

The government has been engaged in many programmes to make MSMEs aware of the ZED certificate schemes. It has trained several experts including stakeholders, consultants on the scheme to enable an effective implementation by partners like QCI, BIS, NPC.

What is there in the revamped scheme?

Under this revamped programme the government has introduced an additional subsidy of 10 per cent for women/SC/ST entrepreneurs or MSMEs in NER/Himalayan/LWE/Island territories.

In addition to above, there will also be an additional subsidy of 5 per cent for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) of the Ministry.

MSMEs have the option to opt for upgrading certification level at any point time before the expiry of the validity of their existing ZED certification.

Cost and subsidy will remain the same for the applied level. Also, a limited-purpose joining reward of INR 10,000 will be offered to each MSME once they take the ZED Pledge which needs to be utilised within a defined period.

Eligibility:

All MSMEs registered with the UDYAM registration portal (of the MoMSME) are entitled to participate in MSME Sustainable (ZED) Certification and avail of related benefits.

Support from State Governments:

In order to show support to the central-run scheme, several governments including Punjab, Haryana, and, Odisha have come forward and offered major benefits to the MSMEs as per their ratings under the programme.

Punjab has offered a total subsidy of INR 25 lakhs or an incentives of 50 per cent of the total cost incurred for the upgradation of the latest technologies is provided to those enterprises that are registered under the ZED Certification Scheme have the attained the maturity level of bronze category within the three years from date of commencement.

The Government of Odisha has extended the subsidy of 80%, 60% and 50% to the Micro, Small and Medium enterprises respectively by the central government as a part of reimbursement on the cost of certification.

Meanwhile, the Haryana has declared 75% reimbursement or an amount of INR1 lakh of the total expenditure incurred for obtaining certification for obtaining ISO/HACCP/BSI/WHO-GMP/ZED/TS/ Hallmark certifications approved by Quality Council of India.

To adopt the ZED concept, the below-listed amount can be claimed by the ZED rated MSMEs:

A total amount of INR 25 lakhs or 50% of the cost spent on the Quality Certification, technology acquisition.

A total amount of INR 25 lakhs or 50% of the cost spent on patent registration