ZED Certification Scheme Overview

Study Notes

The ZED (Zero Defect, Zero Effect) certification scheme aims to enhance the quality standards of Micro, Small, and Medium Enterprises (MSMEs) in India, promoting sustainable practices and excellence in quality.
The scheme is implemented by the Quality Council of India, focusing on manufacturing MSMEs that produce tangible products like nuts, bolts, or food items.
Service-based businesses like tailors or restaurants are not eligible for ZED certification.
The scheme is implemented in phases, with the current focus strictly on the manufacturing sector.

MSMEs can apply for certification at any level: bronze, silver, or gold.
Bronze certification consists of five parameters focused on essential practices like leadership and occupational safety.
Silver certification requires 14 parameters, and gold requires 20 parameters.
There is no requirement for MSMEs to achieve bronze certification before moving to higher levels.

Bronze certification is free and can be obtained within 24 hours with correct photographic evidence.
Holding certain certifications like ISO 45001 for workplace occupational safety may offer waivers for specific parameters.
Certified MSMEs gain visibility through their names being published on the government website, enhancing brand credibility and business opportunities.
Certification costs vary: ₹10,000 for bronze, ₹40,000 for silver, and ₹90,000 for gold.
Women entrepreneurs receive free certification across all levels.
Subsidies are available for micro, small, and medium enterprises, with the government covering 80% of costs for micro enterprises, 60% for small, and 50% for medium.
Additional discounts may be available for SC/ST enterprises or those involved in specific government schemes.
All certifications are valid for three years.
MSMEs with existing ISO certifications or product testing through accredited labs may be eligible for reimbursement of up to 75% or ₹50,000 for incurred expenses.
Consultancy support is available to assist in training employees and establishing necessary systems for those interested in transitioning to higher levels of certification.

Consultants provide guidance and hand-holding support for MSMEs pursuing silver and gold level certifications for a fee.
MSMEs can receive reimbursement up to ₹1 lakh for investing in zero-effect solutions like pollution control devices or energy-efficient equipment.
Certified enterprises may receive up to ₹55 lakhs in total financial benefits from the certification.
MSMEs with multiple units can benefit from the scheme for each unit.
MSMEs engaged in transporting goods with the railways may receive concessions.
Several banks offer reduced processing fees and interest rates for certified enterprises.
State governments, particularly in regions like Uttar Pradesh, Punjab, Haryana, and Tamil Nadu, have introduced specific incentives for ZED-certified MSMEs.

The application process can be initiated online through the ZED platform.
Registration requires an associated Udyam registration number and mobile number.
MSMEs with multiple units must register each unit under different addresses.
Ensure the exact names of each unit during registration align with Udyam registration and signage.
Scrutinize the National Industry Classification (NIC) code to confirm accurate industry classification.

Documentation includes photos of the MSME's site and a third-party financial audit confirmation.
Site photos should include two types of exterior photographs: one close-up of the name board and another wider shot of the entire building.
The name board must be clearly displayed and correspond to the registered name.
The photos should showcase the correct address details.
Product photos must depict the actual product and include descriptions and brochures for assessors to understand the product's purpose.

Manufacturers must upload product photos along with descriptions, labels, and brochures.
Information about domestic and international customers, as well as the use of raw materials, is required with yes or no responses.
Facilitators should guide MSMEs through the necessary steps and ensure they understand the implications and responsibilities associated with certification to foster a stronger connection and encourage participation.
Ensure MSMEs understand the importance of carefully reviewing and complying with all documentation and requirements to ensure they meet the certification standards.
Advise MSMEs to store their ZED ID and password securely for future reference as they will be using the ZED platform for further processes.