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Govt’s ZED scheme for MSMEs hits 1 lakh certification milestone; check scheme’s details

Launched in October 2016 and revamped in April 2022, the ZED scheme offers certification for environmentally conscious manufacturing under three certification levels (gold, silver and bronze) classified according to 20 performance-based parameters such as quality management, timely delivery, process control, waste management, etc.

The Zero Effect, Zero Defect scheme (ZED) by the MSME Ministry, which aims to encourage environmentally sustainable manufacturing practices among MSMEs, has achieved the 1 lakh certification milestone, the ministry said in a post on X on Thursday. At the time of filing this report, 1,02,642 MSMEs were certified, of which 1,01,962 were bronze-level certified, 339 units received silver certification and 341 had gold certification, as per data from the scheme’s portal. The cumulative financial support extended to MSMEs under the scheme stood at Rs 134.57 crore.

“From 423 certifications in close to more than three years in the previous ZED to crossing a lakh in 19 months, ZED has come a long way. We also surpassed our internal target of 50,000 certifications before 26th January,” the ministry said in its post.

Launched in October 2016 and revamped in April 2022, the ZED scheme offers certification for environmentally conscious manufacturing under three certification levels (gold, silver and bronze) classified according to 20 performance-based parameters such as quality management, timely delivery, process control, waste management, etc.

The scheme provides financial assistance of up to 75 per cent of the total cost of certification, with a maximum subsidy ceiling of Rs 50,000 along with up to Rs 2 lakh support for handholding/consultancy to achieve the next certification level. For technology upgradation, the scheme offers assistance of up to Rs 3 lakhs for moving towards zero effect solutions/pollution control measures/cleaner technology. 

MSMEs are charged Rs 10,000 for bronze certification, Rs 40,000 for silver certification, and Rs 90,000 for gold certification. 

In December 2023, the MSME Ministry had made the ZED scheme free for women led MSMEs. In addition, the government will now make guarantee payment of 100 per cent financial support for the certification cost under the scheme.