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What is the News?
The Union Minister for Micro, Small and Medium Enterprises has launched the MSME Sustainable(ZED) Certification Scheme.
What is the MSME Sustainable(ZED) Certification Scheme?
Nodal Ministry: Ministry of MSME.
Aim: To create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivise them for ZED Certification while also encouraging them to become MSME Champions.
Phases under the scheme: The first phase will focus on manufacturing MSMEs and the second phase would be aimed at the MSMEs in the services sector.
Benefits and Subsidies: MSMEs will get subsidies on the cost of ZED certification as per the following: Micro Enterprises: 80%, Small Enterprises: 60% and Medium Enterprises: 50%.
– There will be an additional subsidy of 10% for the MSMEs owned by Women/SC/ST Entrepreneurs or MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts.
– In addition to the above, there will be an additional subsidy of 5% for MSMEs which are part of the SFURTI or Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) of the Ministry.
– A limited purpose joining reward of Rs 10,000 will also be offered to each MSME once they take the ZED Pledge.
– A provision of up to Rs. 5 lakh(per MSME) will also be made available for handholding and consultancy support for MSMEs for assisting them to move towards Zero Defect Zero Effect solutions.
– ZED-certified MSME players will also be offered subsidies in stall charges, airfares, concession in banks’ processing fees and rate of interest along with preference in lending.
Significance of the Scheme: Through the ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, and expand their markets amongst others.
Source: The post is based on the article “Union Minister launches MSME Sustainable(ZED) Certification Scheme” published in PIB on 28th April 2022.