Zero defect
- October 31, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Zero defect
Why in the news?
The finance ministry has advised banks to support ZED-certified MSMEs
Details:
- The incentives that lenders are being advised to extend include concessional credit, lower loan processing fees and any other benefit that they deem appropriate.
- Lenders to ensure complete integration of the ZED portal with banks’s online portal
Concept:
MSMEs account for about 40% of the country’s exports, 6% of the manufacturing GDP and almost 25% of the services GDP.
ZED (zero defect, zero effect) certification
- It is granted by the MSME ministry to those eligible units that comply with certain sustainability standards to not harm the environment.
- Objectives:
- The ZED Certification envisages promotion of Zero Defect Zero Effect (ZED) practices amongst MSMEs.
- Components:
- Industry Awareness Programmes/Workshop: MSMEs will be made aware of the MSME Sustainable (ZED) Certification.
- Training Programmes: on the MSME Sustainable (ZED) Certification to enable an effective implementation by partners
- Assessment & Certification
- Handholding: MSMEs will be provided handholding to help them achieve higher ZED Certification levels.
- Benefits/Incentives: Graded incentives will be announced by the Ministry of MSME for MSMEs so as to motivate them to achieve higher ZED Certification levels.
- PR campaign, Advertising & Brand Promotion
- Digital Platform: Certification process will be e-enabled through a single window digital platform.
- MSME Sustainable (ZED) Certification can be attained in THREE Levels after registering and taking the ZED Pledge
- Certification Level 1: BRONZE
- Certification Level 2: SILVER
- Certification Level 3: GOLD
- MSME can apply for any Certification Level if it feels that it can fulfill the requirements mentioned in each
- The intent of taking a ZED Pledge is to take a “pre-commitment” or a solemn promise by MSMEs to uphold the values of Zero Defect Zero Effect in their practices and to urge them to move ahead on the journey of ZED.
- Eligibility-All MSMEs registered with the UDYAM registration portal (of the MoMSME)
- Subsidy:
- Under the Scheme, MSMEs get subsidy as per the following structure, on the cost of ZED certification:
- Micro Enterprises: 80%
- Small Enterprises: 60%
- Medium Enterprises: 50%
- A provision of up to Rs. 5 lakhs (per MSME) will be made available for handholding and consultancy support for MSMEs under ZED Certification for assisting them to move towards Zero Defect Zero Effect solutions.
- The MSMEs can also avail themselves of several other incentives offered for ZED Certification by States & UTs, Financial Institutions etc. and can also apply for free Certification under the MSME KAWACH (COVID-19 Support) initiative.
- Under the Scheme, MSMEs get subsidy as per the following structure, on the cost of ZED certification: