Benefits and Incentives
Benefits and Incentives of ZED Scheme
Some of the benefits that the adoption of ZED would bring are shared highlighted below:
- Up to 85% Subsidy on ZED Certification Cost from Government of India (Micro: 80%, Small: 60% and Medium: 50%; Additional 5% subsidy in case of SC/ST/Women/NER/J&K MSMEs)
- Benefits likely under various State Industrial Policies for ZED Rated MSMEs (Punjab, Haryana and Tamil Nadu have already announced financial benefits to ZED Rated MSMEs).
- Financial Institutions, like State Bank of India (SBI) and Yes Bank, to extend concessions in price as well as processing fee to ZED rated MSMEs. Information on ZED already incorporated by many Banks in the MSME loan application form on the advice of RBI.
- Better visibility to ZED rated MSMEs at Government e-Marketplace (GeM), a National Public Procurement Portal
Many other benefits are likely to be announced for ZED rated MSMEs in the near future.
Benefits to ZED Rated MSMEs
By State Government
Punjab: State Govt. of Punjab has decided to provide following incentives to ZED rated MSMEs:
- Subsidy @50% on the cost for adopting technology subject to maximum of Rs. 25 lakh.
- Reimbursement of 50% of expenses subject to maximum of Rs. 5 lakhs incurred on installation of plant & machinery & testing equipment.
- 75% reimbursement of cost of energy audit (pre-audit and post energy audit) subject to a maximum of Rs.2 Lakh.
- 75% reimbursement of cost of water audit limited to a maximum of Rs. 1 lakh.
- 75% reimbursement of expenses incurred on cost of Safety audit subject to a maximum of Rs. 1 lakh.
- 50% financial support limited to a maximum of Rs.25 lakh on fixed capital cost for setting up of new Effluent Treatment Plant.
- Reimbursement of 75% of the actual expenses with maximum of Rs. 10 lakhs for domestic patent and Rs. 20 lakhs for international patent registration.
- 100% reimbursement of the total expenditure incurred for obtaining ZED certification approved by Quality Council of India subject to a maximum of Rs. 10 lakhs.
- @50% of total rent limiting to Rs 10 lakh for participation of minimum 5 units in Punjab Pavilion in International Trade Fairs abroad.
- 1% of Free on Board (FOB) value or actual freight excluding government fee and taxes on transportation of goods from place of manufacture to the sea port & airport from where they are shipped, whichever is less and maximum up to Rs. 20 lakh per annum.
Odisha: State Govt. of Odisha has announced the following incentives for ZED rated MSMEs:
- 80%,60% and 50% subsidy to Micro, Small and Medium enterprises respectively on the remaining cost of certification after discounting the 80%, 60% and 50% subsidy provided by Central Govt.
- One-time reimbursement of expenses incurred by applicant MSME unit on acquisition of Plant & Machinery/ Testing equipment for obtaining ZED ratings in the following manner:
> 50% of expenses upto Rs 1 lakh incurred to achieve “ZED Bronze” from “No rating”.
> 50% of expenses upto Rs 2 lakh incurred to achieve “ZED Silver” from “ZED Bronze”.
> 50% of expenses upto Rs 3 lakh incurred to achieve “ZED Gold” from “ZED Silver”.
> 50% of expenses upto Rs 4 lakh incurred to achieve “ZED Diamond” from “ZED Gold”.
> 75% of expenses upto Rs 5 lakh incurred to achieve “ZED Platinum” from “ZED Diamond”.
Haryana: State Govt. of Haryana has announced the following for ZED rated MSMEs:
- 75% reimbursement of the total expenditure incurred for obtaining certification subject to a maximum of Rs. 1 lakh for obtaining ISO/ HACCP/ BSI/ WHO-GMP/ ZED/TS/ Hallmark certifications approved by Quality Council of India.
- This assistance would be in addition to the support being provided by Government of India.
Gujarat: State Govt. of Gujarat has announced the following for ZED rated MSMEs:
- Assistance in quality certification: 50% of all charges incurred up to a maximum amount of Rs.5 lakhs paid for the WHO GMP, Hallmark Certification and other
- national and international certification.
Rajasthan: State Govt. of Rajasthan has announced the following for ZED rated MSMEs:
- Assistance in quality certification: 50% of all charges up to a maximum amount of Rs.3 lakh paid for obtaining of each certification for ISI /BIS / WHO-
- GMP/ Hallmark certifications & other national /international certificationapproved by Quality Council of India.
By Banks
- State Bank of India (SBI) has decided to offer concessions in Pricing/processing charges for MSMEs having better ZED ratings. For gold ZED rated MSMEs 25% concession in processing charges, and for diamond and platinum ZED rated MSMEs 0.25% interest concession over the extant card rates. SBI is also considering incorporating ZED rating as a parameter in its Bank’s internal rating system.
- YES Bank has proposed to offer preferential pricing to ZED rated MSME to the tune of 0.5% on the applicable Rate of interest and 50% on Processing Fee on the standard program pricing.
- ZED Rating information included in the “Collateral free Loan application form” across all nationalised and private banks.