About the Scheme

• Zero Defect and Zero Effect (ZED) is a certification scheme. Under the scheme, MSMEs are assessed for their process in achieving Zero defects in their products and processes. Similarly the process which they adopt for production should not affect the environment. 
• There are three stages of assessment based on which the MSMEs will be graded for certification under five categories as Bronze, Silver, Gold, Diamond and Platinum. 
• The cost of certification in grading shall be subsidized by Government of India up to 80% of the expenditure and financial assistance is provided for interested MSMEs for Gap analysis, Handholding and consultancy for improving their rating and adopting measures for moving towards zero effect.

Objectives

• The scheme endeavours to attain the following key goals: 
  • To promote and encompass ZED manufacturing processes in the MSMEs;
  • Encourage to attain a continuous momentum in improving the sector that contributes to the success of Make in India initiative;
  • Reassure to adapt Quality tools and systems, thus promote energy-efficient manufacturing;
  • Make sure that the MSMEs are constantly upgrading their tools and processes to obtain better products;
  • Most importantly, the acclimatization to ZED protocol to have a minimalist impact on the environment.

Why in News?

• The Ministry of Micro, Small and Medium Enterprises has invited applications for the Zero Defect Zero Effect Scheme.

Reference:

1. https://www.financialexpress.com/industry/sme/msme-eodb-nearly-25000-msmes-registered-for-pm-modis-zero-defect-zero-effect-scheme-msme-min-narayan-rane/2379333/