Lok Sabha Question No. 5380 (UNSTARRED), answered on 2025-04-03
Subject: Zero Defect Zero Effect
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. Byreddy Shabari

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 5380 TO BE ANSWERED ON 03.04.2025

## ZERO DEFECT ZERO EFFECT

5380.

DR. BYREDDY SHABARI:

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

- (a) the number of Micro, Small and Medium Enterprises (MSMEs) that have received Zero Defect Zero Effect (ZED) certification during the last five years, State and year-wise;
- (b) the  number  of  MSMEs  in Andhra  Pradesh  that  have  obtained  Bronze,  Silver,  Gold,  Diamond  and Platinum Certification, district wise;
- (c) the total funds allocated, sanctioned and utilized for promoting ZED certification across States, yearwise;
- (d) the number of MSMEs that have applied for ZED certification but are pending for approval, State-wise and district-wise for Andhra Pradesh; and
- (e) whether the Government has conducted any assessment on the impact of ZED certification on MSME competitiveness, exports and sustainability and if so, the key findings thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): The  MSME Sustainable  (ZED)  Certification  Scheme  was  launched  on  28.04.2022.  The  number  of Micro,  Small  and  Medium  Enterprises  (MSMEs)  that  have  obtained  Zero  Defect  Zero  Effect  (ZED) certification since its launch are 2,83,515 as on 28.03.2025. State-wise and year-wise details are at AnnexureI .
- (b): The  revised  ZED  Scheme  i.e.,  the  MSME  Sustainable  (ZED)  Certification  Scheme  has  only  three levels of Certification i.e., Bronze, Silver and Gold. The district wise details of MSMEs certified in the State of Andhra Pradesh are at Annexure-II .
- (c): MSME Sustainable (ZED) Certification Scheme is a Central Sector Scheme. The total year wise funds allocated,  sanctioned  and  utilized  for  MSME  Sustainable  (ZED)  Certification  Scheme  under  MSME Champions Scheme and MSME Champions RAMP (Raising and Accelerating MSME Performance)-EAP is tabulated below:
- (d): The number of MSMEs that have applied for ZED certification but are pending for approval is Zero.
- (e): The  ZED  Certification  Scheme  promotes  Zero  Defect  Zero  Effect  (ZED)  practices,  encouraging MSMEs  to  adopt  quality  manufacturing  with  minimal  environmental  impact.  The  Government  has  not conducted any third-party impact assessment on the ZED Certification Scheme. However, internal evaluations indicate  that  the  ZED  Certification  Scheme  has  been  able  to  improve  awareness  on  quality,  environment, safety, cleanliness and hygiene, and has also contributed to reduction in defects and rejections.

| Financial Year   |   Funds Allocated/Sanctioned (Cr.) |   Expenditure (Cr.) |
|------------------|------------------------------------|---------------------|
| 2022-23          |                              27.3  |               27.3  |
| 2023-24          |                             192.79 |              192.79 |
| 2024-25          |                             241.24 |              241.24 |

## Annexure-I

The number of ZED Certifications (State-wise and Year-wise) since launch i.e. 28.04.2022 as on 28 th March, 2025:

| S. No.   | State/UT                                     | ZED Certifications (2022-23)   | ZED Certifications (2023-24)   |   ZED Certifications (2024-25) |
|----------|----------------------------------------------|--------------------------------|--------------------------------|--------------------------------|
| 1        | Andaman and Nicobar Islands                  | 2                              | 0                              |                              0 |
| 2        | Andhra Pradesh                               | 19                             | 5680                           |                           4280 |
| 3        | Arunachal Pradesh                            | 0                              | 0                              |                              1 |
| 4        | Assam                                        | 11                             | 1675                           |                           1059 |
| 5        | Bihar                                        | 54                             | 16017                          |                           4733 |
| 6        | Chandigarh                                   | 0                              | 682                            |                             22 |
| 7        | Chhattisgarh                                 | 10                             | 1924                           |                            785 |
| 8        | Delhi                                        | 35                             | 867                            |                            452 |
| 9        | Goa                                          | 7                              | 10                             |                              4 |
| 10       | Gujarat                                      | 125                            | 38383                          |                          18342 |
| 11       | Haryana                                      | 135                            | 11207                          |                           3467 |
| 12       | Himachal Pradesh                             | 96                             | 914                            |                            844 |
| 13       | Jammu and Kashmir                            | 8                              | 771                            |                           1944 |
| 14       | Jharkhand                                    | 26                             | 1670                           |                            196 |
| 15       | Karnataka                                    | 434                            | 33869                          |                          12936 |
| 16       | Kerala                                       | 52                             | 2419                           |                            990 |
| 17       | Ladakh                                       | 2                              | 4                              |                              2 |
| 18       | Lakshadweep                                  | 0                              | 0                              |                              0 |
| 19       | Madhya Pradesh                               | 26                             | 7359                           |                           4484 |
| 20       | Maharashtra                                  | 328                            | 10278                          |                           9494 |
| 21       | Manipur                                      | 2                              | 1                              |                              1 |
| 22       | Meghalaya                                    | 0                              | 1                              |                              1 |
| 23       | Mizoram                                      | 0                              | 0                              |                              0 |
| 24       | Nagaland                                     | 2                              | 0                              |                             31 |
| 25       | Odisha                                       | 62                             | 847                            |                            183 |
| 26       | Puducherry                                   | 10                             | 170                            |                             46 |
| 27       | Punjab                                       | 597                            | 9414                           |                           5688 |
| 28       | Rajasthan                                    | 94                             | 8299                           |                           8594 |
| 29       | Sikkim                                       | 0                              | 1                              |                              0 |
| 30       | Tamil Nadu                                   | 794                            | 7559                           |                           2469 |
| 31       | Telangana                                    | 30                             | 2435                           |                           2466 |
| 32       | The Dadra and Nagar Haveli And Daman and Diu | 13                             | 13                             |                            173 |
| 33       | Tripura                                      | 0                              | 229                            |                             37 |
| 34       | Uttar Pradesh                                | 89                             | 9817                           |                          18136 |
| 35       | Uttarakhand                                  | 17                             | 516                            |                            292 |
| 36       | West Bengal                                  | 80                             | 3286                           |                           1886 |
|          | Grand Total                                  | 3,160                          | 1,76,317                       |                         104038 |

## Annexure-II

District wise details of MSMEs certified in the State of Andhra Pradesh since launch i.e. 28.04.2022 as on 28 th March, 2025:

| S. No.      | District              |   Bronze | Silver   | Gold   |   Total Certification |
|-------------|-----------------------|----------|----------|--------|-----------------------|
| 1           | Alluri Sitharama Raju |       36 | -        | -      |                    36 |
| 2           | Anakapalli            |     1389 | -        | -      |                  1389 |
| 3           | Ananthapur            |      623 | -        | -      |                   623 |
| 4           | Annamayya             |       33 | -        | -      |                    33 |
| 5           | Bapatla               |      146 | -        | -      |                   146 |
| 6           | Chitoor               |      148 | -        | -      |                   148 |
| 7           | East Godavari         |     1018 | -        | -      |                  1018 |
| 8           | Eluru                 |      116 | -        | -      |                   116 |
| 9           | Guntur                |      544 | -        | -      |                   544 |
| 10          | Kakinada              |      901 | -        | -      |                   901 |
| 11          | Konaseema             |      304 | -        | -      |                   304 |
| 12          | Krishna               |      168 | 1        | -      |                   169 |
| 13          | Kurnool               |      547 | -        | -      |                   547 |
| 14          | Nandyal               |       95 | -        | -      |                    95 |
| 15          | Ntr                   |      152 | -        | -      |                   152 |
| 16          | Palnadu               |      105 | -        | -      |                   105 |
| 17          | Prakasam              |      465 | -        | -      |                   465 |
| 18          | Spsr Nellore          |      149 | -        | 1      |                   150 |
| 19          | Sri Sathya Sai        |       54 | -        | -      |                    54 |
| 20          | Srikakulam            |      272 | -        | -      |                   272 |
| 21          | Tirupati              |      190 | -        | -      |                   190 |
| 22          | Visakhapatnam         |     1946 | 2        | -      |                  1948 |
| 23          | Vizianagaram          |      337 | -        | -      |                   337 |
| 24          | West Godavari         |      167 | -        | -      |                   167 |
| 25          | Y.S.R                 |       69 | 1        | -      |                    70 |
| Grand Total |                       |     9974 | 4        | 1      |                  9979 |