MSME Ministry launches revamped ZED certification scheme

The Ministry of Micro, Small and Medium Enterprises has launched a revamped Zero Defect Zero Effect (ZED) Certification Scheme. The first phase of this overhauled programme will focus on manufacturing MSMEs while the second would be for those MSMEs in the services sector. According to an official presentation, the ZED certification can help MSMEs get easier access to capital.

Speaking at an event to launch the scheme, MSME Minister Narayan Rane said, “MSMEs contribute 30 per cent to India’s Gross Domestic Product and 50 per cent to the export from this country.”

Elaborating the contours of the new scheme, Vinamra Mishra, Director, Ministry of Micro, Small, and Medium Enterprises said, “MSMEs that have ZED certification will be eligible to get concessions on parcel special trains, as well as get preferences from credit bureaus and banks.”


“Banks have offered to lower processing fee and some relaxation in the rate of lending to those MSMEs that have a ZED certification. There will also be some support in the risk assessment of these certified MSMEs,” he added.

The MSME ministry has also reworked the eligibility criteria for certification under the scheme. The number of parameters required for a Gold category ZED certificate has been trimmed from 50 to 20. MSMEs that have existing certifications for a criterion will also be considered valid for qualifying parameters.

As of November last year, 23,948 MSMEs had registered with intent to adopt the principle of the ZED Scheme. This scheme is part of a drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions.