What is ZED? How that can be Beneficial for Manufacturing MSMEs

The Ministry of Micro, Small and Medium Enterprises launched this scheme in 2016, ZED scheme refers to the Zero Defect Zero Effect. The ZED scheme includes a ZED maturity assessment model where the enterprises continuously strive to improve the business process in order to move up the model from Bronze, Silver, Gold, Diamond and Platinum. It mainly accounts for productivity, implementation of quality systems and tools, increase in energy, financial efficiency, improved human resource and technological depth including design and intellectual property rights in both products and processes.

ZED Certification Eligibility Criteria
All MSMEs registered with the Ministry of MSME or UDYAM registration portal or any other government agencies are eligible to apply for this certification.

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Rating System of Zed Certification Scheme

ZED Certification scheme has 5 rating levels depending on the quality of the manufacturing that is Bronze, silver, Gold, Diamond and Platinum. So better the quality, better the ratings.
- Bronze: Rating of 2.2 to 2.5.
- Silver: Rating of 2.5 to 3.5.
- Gold: Rating of 3.0 to 3.5.
- Diamond: Rating of 3.5 to 4.0.
- Platinum: Ratings from 4.0 to 5.0.

How Can it Benefit MSMEs?
- Increase in production capacity of the MSME sector.
- The Ministry of MSMEs conducts industry awareness programs and workshops to help small businesses understand this scheme
- ZED certification scheme helps in improving the quality of the product resulting in a reduction of the product rejection, especially for MSME exports
- Promotes the upgradation of technology and increasing the productivity of the business
- MSMEs need not pay any participation fee, also financial assistance is provided to attain ZED certification
- MSMEs are provided with a chance to learn new methods of production and management.
- Helps to develop Zero Defect manufacturing environment for the MSMEs
- With the Zero Effect vision it protects the environment creating awareness about sustainability
- Certification of ZED manufacturing is encouraged
- Lastly, this initiative has increased revenue for the MSME sector

Subsidies for the MSME Sector in ZED Certification

The government has provided the following subsidies under this scheme:
- Micro enterprises: 80%
- Small enterprises: 60%
- Medium enterprises: 50%
- An additional subsidy of 5% is provided in the SC/ST category that are owned by women.
- Along with this many states have included this scheme in their industry policy.

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Registration Process for ZED

The process of registration is as follows:
- The registration can be done using either the web or mobile application
- Registration is to be done online which is free of cost using a valid phone number and email
- Provide valid UDYAM number for verification purpose
- This is followed by the desktop assessment, if selected there will be site-assessment
- Further ZED pledge is taken and lastly ZED certificate is provided

MSMEs will get an opportunity to benchmark their systems and processes to learn the best practices across the globe, this also enhances the global competitiveness giving visibility and brand recognition. ZED certification will encourage MSMEs to improve their performance and ease the business process with reduction in defects and negative impact on the environment.

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About Kinara Capital

Kinara Capital is a fast-growing fintech propelling financial inclusion of small business owners in India. Led by a women-majority management team, Kinara Capital is globally recognized for its innovations in MSME financial inclusion. Headquartered in Bengaluru, Kinara Capital operates 125 branches across 90+ cities in India. Visit us at www.kinaracapital.com for more information and follow us on Twitter @KinaraCapital

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This release was published on openPR.