The MSME Sustainable Certification Scheme encourages and facilitates the adoption of Zero Defect Zero Effect (ZED) practises by Micro, Small and Medium Enterprises (MSMEs). This initiative also encourages and stimulates MSMEs to get ZED accreditation. Through the ZED certification path, MSMEs can significantly raise production, significantly reduce waste, significantly increase environmental consciousness, optimally use natural resources, conserve energy, grow their markets and so on. The ZED certification boosts an MSME’s competitiveness by providing assistance, assessment, managerial and technological intervention etc. MSMEs are encouraged to use best practises in product standardisation, systems, processes, work culture and so on, in order to improve their sustainability.
Objectives of the MSME Sustainable Certification Scheme
The objectives of the MSME sustainable certification scheme are as follows:
- Facilitate Quality Manufacturing and Technological Advancement:
The primary goal of the MSME Sustainable Certification scheme is to facilitate and motivate Micro, Small and Medium Enterprises (MSMEs) in producing high-quality products by using the latest tools and technologies. This objective also emphasises the continuous enhancement of processes to achieve optimal productivity and quality while minimising environmental impact.
- Promote ZED Practices and Acknowledge Excellence:
Another important objective is to promote the widespread adoption of Zero Defect Zero Effect (ZED) practices among MSMEs. The scheme aims to acknowledge and celebrate the endeavours of successful MSMEs that have effectively implemented these practices, highlighting their commitment to excellence and sustainable production.
- Encourage ZED Certification Advancement with Incentives:
The MSME Sustainable Certification scheme intends to encourage MSMEs to aspire to higher levels of ZED certification. This objective is pursued through a system of graded incentives, motivating businesses to continuously improve their practices and achieve superior certification levels.
- Cultivate ZED Manufacturing Ecosystem for Global Competitiveness:
This objective highlights the creation of a holistic ecosystem conducive to ZED manufacturing within MSMEs. By doing so, the scheme aims to facilitate export opportunities and boost the global competitiveness of these enterprises, positioning them favourably in the international market.
- Raise Awareness through MSME Sustainable Scheme Certification:
The scheme seeks to enhance public awareness regarding products manufactured using ZED practices. By attaching the MSME Sustainable (ZED) Certification to these products, the objective is to create a recognisable and trustworthy marker that informs consumers about the adherence to stringent quality and sustainability standards.
- Identify Improvement Areas for Informed Decision-Making:
An additional important goal of the scheme is to identify areas within MSME operations that require improvement. By doing so, the scheme assists the government in effectively prioritising investments and shaping policies that encourage the growth and development of the MSME sector in alignment with sustainable principles.
Benefits Offered by the MSME Sustainable Certification Scheme
The MSME Sustainable Certification Scheme extends a range of incentives to Micro, Small and Medium Enterprises (MSMEs) aiming to attain Zero Defect Zero Effect (ZED) certification. These benefits are as follows:
1. Subsidised ZED Certification Cost:
The scheme provides an attractive incentive to MSMEs in the form of subsidised ZED certification costs. The following tiered subsidy rates are applied based on enterprise size:
- For micro-enterprises: An 80% subsidy on ZED certification costs.
- For small enterprises: A 60% subsidy on ZED certification costs.
- For medium enterprises: A 50% subsidy on ZED certification costs.
2. Inclusive Support for Special Categories:
- SC, ST and Women Entrepreneurs: An additional 10% subsidy is granted to MSMEs owned by SC, ST and women entrepreneurs.
- Geographically Challenged Regions: MSMEs located in the Himalayan region, North Eastern Region (NER), Left Wing Extremism (LWE) affected areas, island territories or aspirational districts receive an extra 10% subsidy.
3. Recognition for Clusters and Development Initiatives:
- MSE-CDP and SFURTI Participants: MSMEs participating in the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) or SFURTI of the MSME Ministry can enjoy an additional 5% subsidy on ZED certification costs.
4. Joining Reward:
Upon committing to the ZED pledge, each MSME is awarded a limited-purpose joining reward of Rs. 10,000, further incentivising engagement with sustainable practices.
5. Consultancy Support and Handholding:
The scheme provisions consultancy support and handholding to MSMEs seeking ZED certification. An allocation of up to Rs. 5 lakhs per MSME is reserved for these purposes, aiding them in their journey towards implementing Zero Defect Zero Effect solutions.
6. Access to Additional Incentives:
In addition to the scheme’s benefits, MSMEs can also explore further incentives offered by states, Union Territories (UTs), financial institutions and other relevant entities to support ZED certification efforts.
Certification Tiers within the MSME Sustainable Certification Scheme
The MSME Sustainable Certification scheme offers MSMEs the opportunity to achieve certification at three distinct levels, following their commitment to the ZED pledge:
· Bronze Certification (Level 1):
This initial level signifies an MSME’s successful implementation of foundational sustainable practices. It recognises the enterprise’s dedication to improving its processes and products with minimal environmental impact.
· Silver Certification (Level 2):
Building upon the accomplishments of the bronze level, Silver Certification signifies a higher degree of integration of sustainable practices. MSMEs at this stage demonstrate a greater proficiency in achieving efficiency, quality and environmental responsibility.
· Gold Certification (Level 3):
The highest tier of certification, Gold Certification, showcases the peak of sustainable excellence within an MSME. Enterprises with Gold Certification exhibit exceptional commitment to zero-defect, zero-effect principles, with optimised processes and minimal environmental footprint.
The ZED Pledge
The ‘ZED Pledge’ forms a fundamental commitment to the core principles of Zero Defect Zero Effect (ZED) and lays the foundation for the enterprise’s sustainable journey.
Upon taking the ZED Pledge, the following key elements come into play:
1. Immediate Access to Workplace Assessment for Safety and Hygiene (WASH) Standards:
Following the ZED Pledge, MSMEs gain access to a Certificate on Workplace Assessment for Safety and Hygiene (WASH) standards. This empowers enterprises with essential guidelines for maintaining a safe and hygienic work environment, contributing to the well-being of their workforce.
2. Capacity-Building Measures through MSME KAWACH:
Alongside the WASH certificate, MSMEs are offered the opportunity to benefit from capacity-building measures facilitated by MSME KAWACH. This initiative equips enterprises with valuable knowledge and skills that strengthen their operational capabilities.
3. Flexibility in Certification Attainment:
After taking the ZED Pledge, MSMEs have the autonomy to advance towards certification levels as they find fit. Enterprises can progress through bronze, silver and gold certification levels when they deem themselves capable of fulfilling the specified requirements for each level.
4. A Pre-Commitment to ZED Values:
The essence of the ZED Pledge lies in the MSMEs’ pre-commitment and solemn promise to uphold the core values of Zero Defect Zero Effect in their practices. This signifies their dedication to achieving excellence and sustainability while actively participating in the ZED journey.
Components of the MSME Sustainable Certification Scheme
The essential components that constitute the framework of the MSME Sustainable Certification Scheme are as follows:
1. Industry Awareness Programmes or Workshops:
MSMEs gain awareness about the MSME Sustainable (ZED) Certification through nationwide awareness programmes, which can be conducted online or face-to-face. These programmes involve collaborations with various stakeholders such as implementing agencies, industry associations, MSME-Development Institutes (MSME-DIs), large enterprises/OEMs, district industries centres (DICs) and the Bureau of Energy Efficiency (BEE).
2. Training Programmes:
Stakeholders involved in the certification process, including assessors, consultants and MSME officers, undergo comprehensive training in MSME Sustainable (ZED) Certification. This training is conducted to ensure effective implementation and is facilitated by recognised partners like the Quality Council of India (QCI), Bureau of Indian Standards (BIS) and the National Productivity Council (NPC).
3. Assessment and Certification:
MSMEs undergo assessment through diverse methods such as remote assessment, desktop verification or on-site assessment. Based on the fulfilment of the specific requirements for each level, enterprises are granted the corresponding certification level they have applied for within the ZED framework.
4. Benefits and Incentives:
Graded incentives are announced by the Ministry of MSME to motivate MSMEs to reach higher ZED certification levels. These incentives include various forms of support, including response and preparedness assistance for the COVID-19 pandemic, known as MSME KAWACH (Knowledge Acquisition through WASH for an Accelerated COVID-19 Handling), grounded on the WASH standard.
5. Public Relations Campaign, Advertising and Brand Promotion:
A comprehensive nationwide publicity campaign is executed to promote the ZED brand and popularise the MSME Sustainable (ZED) Certification. This effort aims to create awareness and recognition for the certification scheme on a wider scale.
MSME Sustainable Certification Application Procedure
The stepwise instructions to initiate the process of obtaining the MSME sustainable certification scheme:
1. Visit the Official Website:
Access the official website of the MSME Sustainable (ZED) Certification.
2. Click on ‘Start with ZED’:
On the homepage, locate and click on the ‘Start with ZED’ option.
3. Register as a New User:
Click the ‘Register Now’ button to begin the new user registration process.
4. Ensure Required Information:
To successfully register for ZED certification, the applicant MSME should have the following information:
- Udyam Registration Number of the enterprise.
- Mobile number associated with the Udyam registration.
5. Udyam Registration Requirement:
If the enterprise is not yet registered under the Udyam registration portal, it’s essential to complete this step first. Register your enterprise on the Udyam portal before proceeding to apply for the ZED certificate.
6. Enter Udyam Details:
Enter the ‘Udyam Registration Number’ and ‘Udyam Registered Mobile Number’ in the fields. Then, click on the ‘Proceed’ button on the following page.
7. Select Plant Location and Activity:
Choose the ‘Plant Location’ and its corresponding ‘Associated Plant Activity’. After making your selections, click the ‘Proceed’ button.
8. Receive ZED ID and Password:
Following the completion of the previous steps, the system will generate a ZED ID and password. Additionally, you will receive a ZED pledge certificate, sent to the email address associated with the applicant MSME.
9. Log in to ZED Certification Portal:
Access the MSME Sustainable (ZED) Certification portal using the ZED ID and password provided. These credentials are necessary for applying for the ZED certificate.
Final Thoughts
The MSME Sustainable Certification Scheme helps in sustainable growth by encouraging Zero Defect Zero Effect practices among Micro, Small and Medium Enterprises (MSMEs). Through phased implementation, it supports manufacturing and service sectors, encouraging excellence and global competitiveness.
With clear certification tiers, incentives and a digital platform, it simplifies the journey to sustainability. This transformative initiative empowers MSMEs to thrive while minimising environmental impact, ensuring a resilient and prosperous future.
For more information on MSME Sustainable Certification Scheme, connect with our experts at StartupFino.
