Lok Sabha Question No. 2417 (UNSTARRED), answered on 2017-07-31
Subject: ZED Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: BHARATI DHIRUBHAI SHIYAL, SUBHASH PATEL

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO.2417. TO BE ANSWERED ON MONDAY, THE  31 ST  JULY, 2017.

## ZED SCHEME

## 2417.  DR. BHARATIBEN D. SHYAL: SHRI SUBHASH PATEL:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग ं ्री

- (a) whether the  Government  has introduced/proposed to introduce quality standards  for  auto,  food  processing,  gadgets,  textiles,  electrical  machinery, etc. to make these quality standards a part of 'Make in India' programme and if so, the details thereof and the extent to which this is likely to help to make identified products 'zero defect and zero effect' (ZED);
- (b) the  details  of  the  total  number  of  MSMEs  that  have  started  to  follow  the manufacturing patterns as provided in the guidelines of the ZEDs scheme;
- (c) whether  the  National  Monitoring  and  Implementation  Unit  (NMIU)  i.e.  the Quality Council of India (QCI) been following the guidelines on a consistent basis and if so, the details thereof; and
- (d) whether there is any mechanism of reporting the periodic effect of the scheme on  the  environment  and  if  so,  the  details  thereof  and  if  not,  the  reasons therefor?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE)

OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a) & (b): Quality standards are notified from time to time for products in various sectors,  including  the  sectors  identified  under  the  'Make  in  India' programme. These standards are voluntary in nature.

The  Ministry  of  Micro,  Small  &  Medium  Enterprises  (MSME)  has notified  a  scheme  called  'Financial  Support  to  MSMEs  in  ZED Certification  Scheme'  to  encourage  MSMEs  adopt  Zero  Defect  Zero Effect  (ZED)  practices  in  their  manufacturing  processes.  Under  this scheme,  the  MSMEs  are  assessed  &  rated  on  the  ZED  Maturity Assessment  Model,  which  is  aligned  with  the  manufacturing  sectors under the Make  in India initiative, like Automobile  components,

Defence manufacturing, Food processing, Chemicals, Pharmaceuticals,  Electronic  systems,  Electrical  machinery,  Textiles etc. ZED will not only guide & assist MSMEs  improve their manufacturing processes & systems, but also enhance their environmental consciousness. While conformity with quality standards may  not  by  itself  make  products  zero  defect  and  zero  effect,  it inculcates an ecosystem of quality consciousness that will help MSMEs achieve higher ratings under the ZED model.

1344 Micro, 1538 Small and 365 Medium scale units have registered as  on  25.7.2017  for  obtaining  the  zero  defect  and  zero  effect  (ZED) certification. Of these, 1530 MSMEs  have started online selfassessment,  which  is  the  first  step  in  the  process  of  adopting  ZED manufacturing  practices.  112  MSMEs  have  initiated  the  process  for desktop  assessment,  wherein  they  upload  evidences  of  their  rating worthiness.  14  have  also  gone  ahead  with  site  assessment,  where trained and qualified assessors from accredited Rating Agencies visit the  manufacturing  unit  of  the  applicant  MSME  and  physically  check their systems and processes and forward their recommendation to QCI for final rating.

- (c): The 'Financial Support to MSMEs in ZED Certification' scheme is being implemented by QCI as the National Monitoring and Implementing Unit (NMIU)  under  the  overall  directions  of  Development  Commissioner (MSME) and the Screening and Steering Committee (SSC). As NMIU, QCI implements, coordinates and monitors the following components, inter alia, of the guidelines:
-  Industry Awareness Programmes
-  Training Programmes including Master Trainer, Assessor, Consultant, MSME Capacity Building, MSME officials training etc.
-  Content Development for Online Learning
-  Development  of  Mobile  Monitoring  Applications  for  Awareness Programmes and Site-assessments
-  Accreditation  &  empanelment  of  rating  agencies  &  consulting organisations
-  Conducting Desktop and site-assessments through accredited agencies
-  Conducting  gap  analysis  and  handholding  of  MSMEs  through trained & empanelled Consultants and Consultancy firms
- (d): The  ZED  model  is  a  holistic  model  with  both  quality  as  well  as environment  disciplines  on  which  the  systems  and  processes  of  a manufacturing unit are assessed and rated. A re-rating component is available for the MSMEs to know if their processes have improved both on quality & environment. The NMIU will also conduct random sample assessments to ensure the veracity of assessments. Apart from this, the  NMIU  is  creating  a  robust  mechanism  of  surveillance  of  rated MSMEs for an effective feedback mechanism.

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