According to the data available from the MSME Ministry, the scheme has received 5.08 lakh registrations, of which 3.30 lakh MSMEs have received bronze certification.
The government in September last year had launched ZED 2.0 with a budget of Rs 500 crore to aid 5 lakh MSMEs in migration to higher levels of ZED certification at reduced cost of certification. (Source: freepik)
The Zero Defect, Zero Effect (ZED) scheme, launched in October 2016 by Prime Minister Narendra Modi and revamped in April 2022 to encourage MSMEs to improve their manufacturing quality, has crossed the 3 lakh-certification milestone. According to the data available from the MSME Ministry, the scheme has received 5.08 lakh registrations, of which 3.30 lakh MSMEs have received bronze certification. In comparison, only 1,691 MSMEs have secured silver certification and 2,356 units have obtained gold certification.
The scheme, which focuses on helping MSMEs reduce their wastage in the manufacturing process, enhance their environmental consciousness, save energy, and expand their markets, offers bronze, silver and gold certifications based on the parameters involved at every level.
MSMEs are assessed on five parameters for bronze certification, 14 parameters for silver and 20 parameters for gold certification. Parameters are spread across different functions and activities in business, including workplace safety, HR management, process control, supply chain management, waste management, CSR, technology selection and upgradation, energy management, and more.
The charges for certification, valid for three years, are Rs 10,000 for bronze certification, Rs 40,000 for silver certification, and Rs 90,000 for gold certification. However, the cost is subsidised by 80 per cent for bronze-certified manufacturers, 60 per cent for silver-level MSMEs, and 50 per cent for gold certification holders.
The certified MSMEs are offered financial assistance up to 75 per cent of the total cost of testing, quality or product certification, with the maximum ceiling of subsidy being Rs 50,000. It also offers up to Rs 2 lakh in handholding support for consultancy and up to Rs 3 lakh for support in technology upgradation that helps reduce environmental wastage.
Also read: MSME Lending Outpaced Other Sectors Despite Bank Credit Deceleration: RBI
As India advances its climate action goals under the Paris Agreement and pursues net-zero emissions by 2070, schemes like ZED are seen as critical tools to align grassroots industrial practices with national sustainability ambitions. Encouraging cleaner production methods among MSMEs will not only lower the sector’s carbon footprint but also enhance their global competitiveness in environmentally conscious markets.
Importantly, the government in September last year had launched ZED 2.0 with a budget of Rs 500 crore to aid 5 lakh MSMEs in migration to higher levels of ZED certification at a reduced cost of certification.
By continuing you agree to our Privacy Policy & Terms & Conditions
