Lok Sabha Question No. 2393 (UNSTARRED), answered on 2017-07-31
Subject: ZED Scheme for MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: CHANDRAKANT BHAURAO KHAIRE

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 2393 TO BE ANSWERED ON: 31.07.2017

## ZED SCHEME FOR MSMEs

## 2393. SHRI CHANDRAKANT KHAIRE:

Will  the  Minister  of  MICRO,  SMALL  AND  MEDIUM  ENTERPRISES  be pleased to state:

- (a) whether the Government has launched a new scheme namely Zero Defect Zero  Effect  to  provide  financial  assistance  to  Micro,  Small  and  Medium Enterprises (MSMEs);
- (b) if so, the details thereof along with the objectives of the scheme and the parameters to provide financial assistance thereunder;
- (c) the number of applications received under the scheme and the financial assistance provided to MSMEs, MSME-wise; and
- (d) the efforts made by the Government to promote MSMEs and the results achieved in this regard so far?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI HARIBHAI PARATHIBHAI CHAUDHARY)

- (a):      Yes,  Madam.    The  Government  has  launched  a  new  scheme  namely 'Financial Support to MSMEs in ZED Certification Scheme'.
- (b):            The  objective  of  the  scheme  for  promotion  of  Zero  Defect  and  Zero Effect  (ZED)  manufacturing  amongst  micro,  small  and  medium  enterprises (MSMEs) and ZED Assessment for their certification so as to:
-     Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
-      Promote  adaptation  of  Quality  tools/systems  and  Energy  Efficient manufacturing.
-     Enable MSMEs for manufacturing of quality products.
-      Encourage  MSMEs  to  constantly  upgrade  their  quality  standards  in products and processes.
-          Drive  manufacturing  with  adoption  of  Zero  Defect  production processes and without impacting the environment.
-    Support 'Make in India' campaign.
-        Develop  professionals  in  the  area  of  ZED  manufacturing  and certification.

There are 50 parameters for ZED rating and additional 25 parameters for ZED Defence rating under ZED Maturity Assessment Model.  The MSMEs are provided  financial  assistance  for  the  activities  to  be  carried  out  for  ZED certification i.e.,  Assessment / Rating, Additional rating for Defence angle, Gap Analysis,  Handholding,  Consultancy  for  improving  the  rating  of  MSMEs  by Consultants and Re-Assessment / Re-Rating.

Under  the  scheme  22,222  MSMEs  will  be  rated  &  certified  under  ZED Maturity Assessment Model, 5,000 MSMEs will be rated & certified under the ZED  Defence  Model,  7368  MSMEs  will  be  supported  for  Gap  Analysis, Handholding, Consultancy for improving their rating, etc. The total cost of the project  is  Rs.  491.00  crores  (Government  contribution  Rs  365.00  crores, beneficiary MSMEs contribution Rs 126.00 crores).

(c):      Quality  Council  of  India  (QCI)  has  been  appointed  as  the  National Monitoring & Implementing Unit (NMIU) for implementation of  ZED.  QCI has  reported that 3217 MSMEs has been registered as on25.07.2017 for ZED Certification.  The  MSME-wise  details  are  Micro:  1332,  Small:  1522  & Medium: 363 and financial assistance to MSMEs is yet to commence.

(d): The Ministry of MSME is implementing a number of schemes to promote MSMEs  namely  (i)  Credit  Guarantee  Fund  Scheme  for  Micro  and  Small Enterprises  to  facilitate  collateral  free  credit  to  new  and  existing  micro  and small enterprises (MSEs); (ii) Scheme for Raw Material Assistance implemented  by  National  Small  Industries  Corporation  Limited  under  the Ministry;  (iii)  National  Manufacturing  Competitiveness  Programme  (NMCP) and Credit Linked Capital Subsidy Scheme implemented to facilitate upgradation  of  technology,  improve  processes  and  design;  (iv)  Management Development  Training  Programmes  (MDPs)  for  enhancing  managerial  skills; (v) Micro and Small Enterprises-Cluster Development Programme to facilitate infrastructure upgradation and setting up of Common Facility Centres; and (vi) Marketing Development Assistance Support to MSME; (vii) Ministry of MSME has introduced online MSME  Data Bank on 29.07.2016 for creating comprehensive database of MSMEs  and  (viii) Ministry  of  MSME  has introduced simplified online  registration 'Udyog Aadhar Memorandum (UAM) for MSMEs'.  33,25,159 MSMEs registered with UAM from September, 2015 till 25.07.2017.