Prime Minister Narendra Modi launched the voluntary Zero Defect, Zero Effect (ZED) scheme in October 2016 in order to improve the competitiveness and productivity of MSMEs by helping them reduce wastage in their manufacturing process, enhance their environmental consciousness, save energy, and expand their markets.

Eligibility for ZED Certification

All manufacturing sector MSMEs registered with the UDYAM registration portal are eligible to participate in MSME Sustainable (ZED) Certification and avail related benefits/incentives

How to Apply for ZED Certification Scheme

• Register using a valid phone number and email at zed.msme.gov.in
• Registration is free of cost
• Provide a valid UDYAM Registration number and email id for verification purposes
• After registration, the ZED ID and login password along with ZED Pledge Certificate is sent on the Email ID provided

Certification Categories

ZED Certification is attained on 3 levels after taking the ZED Pledge i.e., Bronze/Silver/Gold. As an MSME, you can apply online for any Certification Level and would need to conform to all the requirements of the level applied for, in order to obtain the Certification.

The assessment is done on 20 parameters like leadership, swachh workplace, workplace safety, measurement of timely delivery, quality management, daily works management, planned maintenance and calibration, process control, testing/certification of product quality and safety, material management, energy management, environment management, measurement and analysis, supply chain management, risk management, waste management, technology selection & upgradation, natural resource conservation and corporate social responsibility

Criteria for the three levels:

Certification Level 1: BRONZE (Meeting 5 Parameters)

Certification Level 2: SILVER (Meeting 14 Parameters- Including the Bronze parameters)

Certification Level 3: GOLD (Meeting all the 20 Parameters)

What is the validity and cost of certification?

The certificate is valid for three years, MSMEs will have to re-apply for the certificate as per the validity of the scheme. MSMEs are charged Rs 10,000 for bronze certification, Rs 40,000 for silver certification, and Rs 90,000 for gold certification.

How can ZED Certification Benefit MSMEs?

• ZED certification scheme helps in enhancing the quality of the product, resulting in the reduction of product rejection, especially for MSME exports.
• Promotes the upgradation of technology and tools, increasing the productivity of the business.
• MSMEs are provided with a chance to learn new methods of production and management.
• The Ministry of MSMEs conducts industry awareness programs and workshops to help small businesses understand this scheme.
• Helps to develop a Zero Defect manufacturing environment for the MSMEs.
• The Zero Effect vision protects the environment by creating awareness about sustainability.
• Better quality of products/processes and revenue for the MSME sector

HDB Financial services (HDBFS) recommends that you apply for the ZED certification if you are an MSME as it offers numerous benefits. What’s more, HDBFS has a special offer for MSME’s with a ZED certification. Click here to view the offer.