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ZED certificate full form is Zero Defect Zero Effect certificate. This certificate is provided under the MSME Sustainable (ZED) Certification Scheme. This scheme was launched by the Ministry of MSME. It is a voluntary scheme that aims to help the MSMEs adopt "Zero Defect, Zero Effect" manufacturing processes, make quality and productivity better, improve sustainability and empower MSMEs to become globally competitive.
A ZED certified MSME is viewed as more credible in the market and usually finds it easier to access loans. In this blog post, we shall explain what ZED certification is, objectives, benefits, registration process and more.
MSME ZED full form is Micro, Small and Medium Enterprises Sustainable (ZED) Certification. This certification scheme was launched in October 2016, and then revamped in April 2022. It is an initiative of the Government of India to promote and reward Zero Defect Zero Effect (ZED) practices among businesses registered as MSMEs in India.
Zero Defect Zero Effect practices means commitment of MSMEs when it comes to manufacturing high-quality products that carry no defects (Zero Defect) and minimizing environmental harm through adoption of sustainable product processes that cause least possible impact on the environment (Zero Effect).
Under the scheme, there are 3 levels of certification, i.e., gold, silver and bronze. In the next section, we shall learn about these levels.
Before the MSMEs can pursue any of the 3 certification levels under ZED scheme, they must first take the ZED pledge. Now, what exactly is the ZED Pledge? In this section, first, we’ll explain this pledge before explaining the 3 certification levels.
ZED pledge means a pre-commitment and solemn promise that an MSME makes to embrace the principle of Zero Defect (producing high-quality flawless products) and the principle of Zero Effect (minimizing environmental impacts through sustainable product processes) in its operations. By taking the pledge, the MSME showcases its intention to embark on a continuous improvement in quality as well as sustainability. The process of taking ZED pledge is an entirely-online process via the official ZED portal.
Once the MSME takes pledge, it gains immediate access to benefits like eligibility for assistance with risk preparedness (like MSME KAWACH, based on WASH standard) and limited-purpose joining reward amounting to Rs. 10,000 that can be used towards certification costs. After the pledge, the MSME can apply for one of the three levels of certification:
This is the foundational level of certification. It lays emphasis on basic quality management and environmental standards by MSMEs. At this level, the MSMEs showcase an initial commitment to improving their processes, reducing the fundamental defects and taking certain preliminary steps towards environmental responsibility.
The purpose of the bronze certificate is to help MSME businesses establish a baseline for their quality as well as sustainability.
The silver certification is a higher-level certification and builds upon bronze certification. An MSME with silver certification implies enhanced adherence to quality control and sustainability as compared to an MSME with bronze certification. MSMEs having ZED silver certification have more stringent measures for defects and waste minimization.
They show major improvements in operational efficiency and environmental footprint. Silver certification’s purpose is to signify a stronger commitment to continuous improvement and a more enhanced system for quality and sustainability management.
The gold certification is the highest level of certification under the ZED MSME scheme. An MSME with this certification demonstrates excellence when it comes to quality management and sustainability. ZED certified MSMEs with gold certificates show an advanced stage of commitment to Zero Defect and Zero Effect principles.
The certification positions the MSMEs at par with global leaders when it comes to product quality, environmental responsibility and operational efficiency. Gold certificate reflects an MSME’s deeply ingrained culture of continuous improvement, innovation and sustainability.
The objectives of ZED certification scheme are as follows:
One of the primary objectives of the scheme is to motivate and facilitate MSMEs for manufacturing quality products via latest tools, technologies and to constantly enhance their processes for attaining high quality as well as high productivity with least environmental harm.
Another key objective of the scheme is to create an ecosystem for zero defect zero effect manufacturing in MSMEs to enhance competitiveness and enable exports.
The MSME ZED programme aims to increase public awareness regarding Zero Defect Zero Effect products.
One of the main objectives of the scheme is to identify areas requiring improvement and help the govt. in policy decisions and investment prioritization.
The scheme intends to encourage the micro, small and medium enterprises to attain higher certification levels under the scheme via graded incentives.
It promotes adoptions of zero defect zero effect practices and acknowledges the efforts made by the entities.
ZED certificates are solely for businesses that operate within the MSME industry and have successfully registered with the Udyam Registration portal of the MoMSME.
The following documents are required for ZED certification registration:
Business Registration Certificate
Safety Management Details of MSME
Human Resource Management Details of MSME
Intellectual Property Rights (IPR) Details of MSME
Details of MSME’s Design Management
Udyam Registration Number of the Enterprise
MSME’s Self-Assessment Report
Financial Statements of MSME
Quality Management System (QMS) Details
Environmental Management System (EMS) Details
Energy Management System (EnMS) Details
The process for ZED certificate registration requires completion of following steps:
Step 1: Visit the official ZED website and then click on ‘Start with ZED’
Step 2: On the next page, click on ‘Register Now’. Then, you must provide your udyam registration number and linked mobile number for validation. Then, click on the ‘Proceed’ button
Step 3: Now, you need to select Plant Location and its Associated Plant Activity. Then, click on the ‘Proceed’ button to move to the next step.
Step 4: In this step, you must provide and confirm Email ID. Then, click on the ‘proceed’ button.
Step 5: Now, you must take the ZED pledge.
Step 6: After taking the pledge, ZED ID & Password and ZED Pledge Certificate will be sent on the email ID you provided.
After successfully completing the registration process, you can proceed to the process for securing ZED bronze/silver/gold certificate. For this, you must file an application and submit all the necessary documents.
While submitting the application and documents, you must pay the prescribed certification fee. After verification of the application, if the application is found to be satisfactory, your MSME will receive the ZED certificate.
ZED certification benefits are as follows:
A ZED certificate issued by the Quality Council of India under the MSME Sustainable (ZED) Scheme ensures that Micro, Small and Medium Enterprises manufacture high quality products that cause minimal harm to the environment.
It rewards MSMEs based on their efforts by providing them with subsidies on certification costs and financial assistance for upgrading their technologies.
A ZED certified MSME reduces waste production and pollution and contributes to the environment.
Some banks may offer loans to ZED certified MSMEs at lower interest rates.
The ZED certificate download process can be completed online, making it easy to obtain the certificate.
The ZED scheme is one of the prominent initiatives taken by the Government of India for the MSMEs. It promotes Zero Defect Zero Effect practices among the micro, small and medium enterprises and encourages them to manufacture quality products using latest technology, tools and to constantly improve their processes for achieving flawless quality and high productivity with least environmental impact. Under the scheme, the MSMEs are provided bronze, silver or gold certificates based on their compliance with quality, safety and sustainability parameters. Before applying for the ZED scheme, your business must secure Udyam Registration. Without this registration, no business can apply for the ZED MSME scheme.
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