::ZED SCHEME FOR MSMES::
Manufacturing in India accounts for around 16 percent of GDP, which is
persistent since 1990's and is relatively low when compared to the 20-percent
plus share in countries like Brazil, China, Indonesia, Korea and Malaysia. The
manufacturing sector is critical for the economy's growth as it employs 12.0 per
cent of the country's labour force as well as provides a transitional
opportunity to the labour force in agriculture. In addition, the sector has a
multiplier effect for job creation in the services sector. According to National
Manufacturing Policy (NMP) 2011, every job created in the manufacturing sector
creates twothree additional jobs in related activities. The NMP provides for
promotion of clusters and aggregation, especially through the creation of
national investment and manufacturing zones (NIMZ). Till 2013-14, 16 NIMZs had
been announced. Of these, eight are along the Delhi-Mumbai Industrial ZED SCHEME
FOR MSMES Corridor (DMIC). Eight other NIMZs have been given in-principle
approval: (i) Nagpur in Maharashtra, (ii) Chittoor in Andhra Pradesh, (iii)
Medak in Andhra Pradesh (now Telengana), (iv) Prakasam in Andhra Pradesh, (v)
Tumkur in Karnataka, (vi) Kolar in Karnataka, (vii) Bidar in Karnataka, and
(viii) Gulbarga in Karnataka.
If India's growth has to accelerate towards its correct potential,
manufacturing sector growth is a must. Country faces lot of structural
constraints for manufacturing sector to grow properly. Constraints related to
roads, ports, other infrastructure reduce the productivity. If basic
infrastructure can be improved India's manufacturing sector will become more
competitive, which will help India to go on a higher growth path and enabling
large scale job creation. According to the Update, a twice yearly report on the
Indian economy and its prospects, India's economic growth is expected to rise to
5.6 percent in FY15, followed by further acceleration to 6.4 percent and 7.0
percent in FY 2016 and FY 2017. The projections could, however, face risks from
external shocks, including financial market disruptions arising out of changes
in monetary policy in high income countries, slower global growth, higher oil
prices, and adverse investor sentiment arising out of geo-political tensions in
the Middle East and Eastern Europe. Domestically, the risks include challenges
to energy supply and fiscal pressures from weak revenue collection in the short
term, the Update said. However, risks could be mitigated to a large extent by
focusing on reforms that help the manufacturing sector.
The Government has launched a new scheme namely "Financial Support to MSMEs
in ZED Certification Scheme".
The objective of the scheme for promotion of Zero Defect and Zero Effect
(ZED) manufacturing Sagar Vani - An Integrated Information Dissemination System
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
- Enable MSMEs for manufacturing of quality products.
- Encourage MSMEs to constantly upgrade their quality standards in products and
- 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).
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 MSMEwise
details are Micro: 1332, Small: 1522 & Medium: 363 and financial assistance to
MSMEs is yet to commence.
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
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. Sagar Vani - An Integrated Information