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ZED CERTIFICATION

DigitalCA
Mar 25, 2020

 

ZED CERTIFICATION

Our honorable Prime Minister Sri Narendra Modi urged the industry to manufacture goods in country with ‘Zero Defect’ and to the ensure that the goods have ’Zero effect’ on the environment while addressing the nation on India’s 68th Independence Day.

"We should manufacture goods in such a way that they carry zero defect and that our exported goods are never returned to us. We should manufacture goods with zero effect that they should not have a negative impact on the environment"

To implementation of ZED certification in MSME Industry, Ministry of MSME has started the work with help of Quality Council of India (as NMIU) with a total budget for Rs 491 crore (including Government of India contribution of Rs 365 crores during 12the Five Year Plan.

We can understand following points regarding ZED Certification:

  1. What are the major objectives of the ZED Certification?
  2. What is the ZED Rating Process?
  3. What is the Financial assistance program for ZED Certification?
  4. What is nature of financial assistance for ZED Certification?
  5. Who can apply for ZED certification?
  6. How to apply for ZED certification?
  7. What are the benefits of ZED Scheme?

 

1.  What are the major objectives of the ZED Scheme?

The major objectives of the ZED Scheme are:

  1. To create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED rating.
  2. To drive manufacturing with adoption of Zero-Defect production processes without impacting the environment (Zero Effect).
  3. To encourage MSMEs to constantly upgrade their quality standards in products and processes.
  4. To support “Make in India” campaign.

 

2. What is the ZED Rating Process?

 

Four Steps of ZED Rating Process

  1. Free Online Registration:     

-Quick and Simple Registration Process to get your ZED Id

  1. Free Online Self-Assessment:

-Know your manufacturing unit’s present status of system and processes on ZED Scale

  1. Desktop Assessment:   

-Get Online verification of Evidences by ZED Desktop Assessors.

  1. Site Assessment:

-Get On-site assessment by ZED Qualified Assessors.

3. What is the Financial assistance program for ZED Certification?

The department of MSME has started various scheme to promote ZED model amongst the MSM enterprises with   financial help in assessment & certification. Following are the scheme High Lights:

The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement and supporting the Make in India initiative.

The ZED Certification scheme is an extensive drive to create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED and support them. After ZED assessment, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes etc.

The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification so as to:

  • Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
  • Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
  • Enable MSMEs for manufacturing of quality products.
  • Encourage MSMEs to constantly upgrade their quality standards in products and processes.
  • Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.
  • Support ‘Make in India’ campaign.
  • Develop professionals in the area of ZED manufacturing and certification.

 

4. What is nature of financial assistance for ZED Certification?

Following are the Assessment & Rating/Re-rating/Gap analysis/Hand holding:

The subsidy provided by the Government of India for Micro, Small & Medium Enterprises will be 80%, 60% and 50% respectively. There shall be an additional subsidy of 5% for MSMEs owned SC/ST/women and MSMEs located in NER and J&K for assessment & rating/re-rating/gap analysis/hand holding:

a) Assessment/Rating by empaneled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 10,000/-& Rs 80,000/- per enterprise respectively for Desktop Assessment and ZED rating Complete Assessment).

b) Additional rating for Defence angle i.e. Defence ZED by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40,000/- per enterprise.)

c) Gap Analysis, Handholding, Consultancy for improving rating of MSMEs by Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI, MSME-TC including its autonomous bodies, BEE etc. (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Consultancy charges: average 70% of Fee) (Hand holding charges Rs. 1.9 Lakh per enterprise whereas in case of MSMEs owned by SC/ST entrepreneurs additional support of Rs 10,000/- will be provided.)

d) Re-Assessment/Re-Rating by Credit Rating Agencies & Other Agencies (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40000/- per enterprise.).

5. Who can apply for ZED certification?

All manufacturing Micro, Small and Medium enterprises (MSME) having Udyog Adhar Memorandum can apply.

6. How to apply for ZED certification?

The ZED Certification Scheme is a 4 steps process:

Step 1 : Register free on the online portal of ZED (www.zed.org.in), using the following link:

http://assessment.zed.org.in/Assessment/Assessment_BeforeLogin.aspx, using the valid (Indian) mobile number and email address.

Step 2 : Online self-assessment on the ZED parameters followed by Desktop Assessment.

Step 3 : Site-assessment, if selected on the basis of Desktop Assessment.

Step 4 : Consultancy: Rated MSMEs will have the option to avail the service of an authorized ZED consultant for gap-analysis and handholding.

7. What are the benefits of ZED Scheme?

Benefit to MSMEs due to ZED Scheme:

  • Easy access to Loans
  • Credible & reliable vendor database
  • Reducing negative effect on our environment
  • Awards & Rewards
  • Aligning with best practices
  • Global Competitiveness
  • Visibility & brand recognition

Writer:

CA. Rajeev Ranjan Shrivastava

GST & MSME Consultant

M: +91-8527701333

E: [email protected]

W: www.digitalca.in