MSME Sustainable (ZED) Certification

What is MSME Sustainable (ZED) Certification?

MSME Sustainable (ZED) Certification is a voluntary certification scheme of the Ministry of Micro, Small and Medium Enterprises that rates manufacturing MSMEs on Zero Defect Zero Effect practices. Union Minister for MSME Shri Narayan Rane launched the scheme on 28 April 2022, according to the Press Information Bureau release of that date.

ZED certification works on three levels: Bronze, Silver and Gold, awarded after an assessment carried out by agencies accredited by the Quality Council of India. The Ministry of MSME pays most of the certification cost as subsidy, so that a micro enterprise typically pays a small fraction of the listed fee.

Key objectives

• Enable MSMEs to manufacture quality products with the least effect on the environment.
• Build an ecosystem for ZED manufacturing that improves competitiveness and export readiness.
• Push MSMEs towards higher certification levels through graded incentives.
• Help the government identify improvement areas for policy and investment prioritisation.

Main features

• Three certification levels: Bronze (Level 1), Silver (Level 2), Gold (Level 3).
• Certification is voluntary and does not replace ISO or any statutory approval.
• Every applicant must take the ZED Pledge before applying for a level.
• Assessment is conducted by QCI-accredited agencies; the ZED certificate is issued on their findings and recommendation.
• The Ministry of MSME may inspect any certified unit that has availed subsidy.

Who is eligible for MSME Sustainable (ZED) Certification?

You can apply if:

• Your enterprise is registered on the Udyam registration portal of the Ministry of MSME. According to the ZED eligibility page, all Udyam-registered MSMEs can participate and avail related benefits and incentives.
• Your enterprise is in the manufacturing sector. The ZED FAQ states the scheme presently covers manufacturing MSMEs.
• You have taken the ZED Pledge on zed.msme.gov.in.

Any number of units under one Udyam registration can apply for subsidy, but each unit must apply for certification separately to avail the subsidy, benefits and incentives.

You cannot apply if:

• Your enterprise is not registered on Udyam. The ZED FAQ is explicit that unregistered MSMEs are not eligible.
• You run a service sector enterprise. Service MSMEs are not eligible at present; the Ministry says a model for the service sector is being developed.
• You are an individual, consultant or trader seeking a personal cash benefit. ZED is a certification scheme for enterprises, not an income-support scheme.

Holding an ISO certificate neither disqualifies nor exempts an MSME. The portal confirms that all MSMEs registered with the Ministry can avail scheme benefits irrespective of the certifications they already hold.

How much does ZED certification cost and what is the subsidy?

According to the ZED portal, the cost of certification is:

Two additional subsidies stack on top of the base rate:

• 10 per cent extra for MSMEs owned by Women, SC or ST entrepreneurs, or for MSMEs located in the North Eastern Region, Himalayan states, LWE-affected districts, island territories or aspirational districts.
• 5 per cent extra for MSMEs that are also part of the Ministry's SFURTI or MSE-CDP cluster programmes.

Separately, a limited-purpose joining reward of Rs 10,000 is credited to every MSME that takes the ZED Pledge. The reward can be used only once, only against an assessment fee, and it lapses one year after the pledge. The ZED portal explains the sequence clearly: the reward is deducted from the certification cost first, and the subsidy then applies to the balance. That is why Bronze becomes effectively free for an MSME using the reward.

What documents are required for ZED certification?

How to apply for MSME Sustainable (ZED) Certification

1. Visit the official portal at zed.msme.gov.in and click the ZED Certification tab.
2. On the Login or Registration page, enter your Udyam Registration Number and the mobile number associated with it, and complete validation.
3. Read and take the ZED Pledge. The Rs 10,000 joining reward and free WASH certification under MSME KAWACH become available immediately after the pledge.
4. Choose the certification level; Bronze, Silver or Gold, that your unit can meet, and submit the online application along with the undertaking.
5. Pay the applicant share of the certification cost after the joining reward and subsidy are adjusted.
6. Upload evidence against the ZED parameters and complete the assessment allotted to you, desktop verification, remote assessment or onsite assessment as applicable.
7. Close any non-conformity raised by the assessor within the time period given; the application stays open until it is closed.
8. Download the ZED certificate issued on the recommendation of the accredited assessment agency from your dashboard.

There is no offline route. The Ministry of MSME states that the certification process is e-enabled through a single-window digital platform with minimum use of paper. The detailed user manual is available on the portal and in the "My Document" section of the applicant dashboard.

What support does ZED provide after certification?

Gap analysis and handholding. MSMEs holding at least a Bronze certificate can apply for handholding. A provision of up to Rs 5 lakh per MSME exists, split as up to Rs 2 lakh for handholding and consultancy through empanelled consulting organisations and up to Rs 3 lakh for technology upgradation towards zero-effect solutions, pollution control or cleaner technology. The Rs 3 lakh component needs the consultant's recommendation, verification by the respective MSME-DI and approval by the PMAC. Handholding support is provided once in a ZED cycle, and Rs 2 lakh is the upper limit inclusive of taxes.

Testing, system and product certification. After achieving a ZED level, an MSME can claim reimbursement on one testing OR one management system OR one product certification, subject to a ceiling of Rs 50,000. The ZED FAQ specifies that the management system certificate must come from a body accredited by NABCB, and that the certificate date must be later than the ZED certificate against which support is claimed.

MSME KAWACH. Certification on the WASH (Workplace Assessment for Safety and Hygiene) standard is available free immediately after taking the ZED Pledge. WASH certification is optional and no consultancy support is offered for it.

What is the ZED surveillance assessment?

ZED surveillance is a check carried out 18 months after certification, and it applies only to Silver and Gold certificate holders. There is no surveillance for Bronze. Surveillance is conducted remotely by QCI-accredited assessment agencies and costs Rs 10,000 for Silver and Rs 20,000 for Gold, with the same 80, 60 and 50 per cent subsidy for micro, small and medium enterprises.

An MSME may upgrade its certification level at any time before its existing certificate expires; the cost and subsidy are those of the level applied for. After expiry, the MSME can renew the existing level or move up to Silver or Gold to continue availing the associated benefits and incentives.

Who implements the ZED scheme?

The Ministry of MSME implements ZED nationwide through the Quality Council of India, the National Productivity Council, BIS, industry chambers such as CII, FICCI and ASSOCHAM, MSME Development Institutes, MSME Technology Centres, District Industries Centres, industry associations and the Bureau of Energy Efficiency. Site assessments are done only by QCI-accredited agencies, and gap analysis and handholding only by QCI-empanelled consulting organisations. MSMEs cannot pick their own assessor or consultant; allocation is done by the implementing agency through a pre-defined process.

Help and grievance redressal

• ZED support email: zed.support@qcin.org
• ZED helpdesk contact listed on the portal: 9773770346
• Postal address: Ministry of Micro, Small and Medium Enterprises, Kartavya Bhawan-03, Kartavya Path, New Delhi 110001

Detailed scheme guidelines are published as a guideline book on the ZED website. No agent is needed to obtain ZED certification; registration, the pledge and the application are all completed by the MSME itself on zed.msme.gov.in.