Adopting ZED (Zero Defect Zero Effect) principles helps MSMEs elevate quality standards, reduce waste, and improve environmental sustainability. But the benefits don’t stop at enhanced operations—both the Central and state governments, along with financial institutions, offer robust incentives and subsidies to reward ZED-certified enterprises. Here's how ABS helps clients claim these valuable benefits.

1. Central Government Benefits under the ZED Scheme

Subsidy on Certification Cost

• 80% of the cost for Micro enterprises

• 60% for Small

• 50% for Medium enterprises
  ZED MSMEMinistry of MSME

Additional Subsidies

• +10% for MSMEs owned by Women / SC / ST entrepreneurs, or located in NE region, Himalayan, LWE, Island territories, or aspirational districts

• +5% if part of SFURTI or MSE–CDP clusters
  ZED MSMEMinistry of MSME

Joining Reward

• ₹10,000 once the ZED pledge is taken—can be applied toward the certification cost (e.g., makes Bronze effectively free)
  ZED MSME

Additional Financial Support

• Up to ₹50,000 (75% subsidy) for testing / quality / product certification

• Up to ₹2 lakh for handholding/consultancy to progress to higher ZED levels

• Up to ₹3 lakh for technology upgrades, focused on "Zero Effect" implementation
  Ministry of MSMERSJ ZED MSMEDrishti IAS

2. State-Level Incentives: Boosts Based on Location

Many Indian states provide additional subsidies tailored to ZED-certified MSMEs. Highlights include:

• Punjab:

  • 100% reimbursement of ZED certification cost, up to ₹10 lakh

  • Up to ₹25 lakh subsidy for tech adoption

  • Reimbursement on energy, water, safety audits; plant/machinery; exports; and patents

  • Freight subsidy up to ₹20 lakh per annum
    MSME OnlineIndiaFilings

• Odisha:

  • Further reimbursement on plant/machinery costs based on ZED level—from ₹1 lakh (Bronze) to ₹5 lakh (Platinum)
    MSME OnlineIndiaFilings

• Haryana:

  • 75% reimbursement (up to ₹1 lakh) on ZED and similar certifications
    MSME OnlineIndiaFilings

• Gujarat:

  • 50% assistance (max ₹5 lakh) on quality certifications

  • Up to ₹10 lakh for equipment/machinery
    MSME OnlineIndiaFilings

• Rajasthan & Others:

  • Varying levels of cost reimbursement for certification and equipment

  • Examples:

    • Rajasthan: ₹3 lakh max

    • Maharashtra: subsidies for cleaner production, patenting, certification, and capital equipment

    • Assam / Tripura / UP / Jharkhand: attractive state-specific packages
      Zed MSME

3. Financial Institutions & Other Benefits

Financial players and infrastructure providers also support ZED-certified MSMEs:

• Banks:

  • SBI: 25% concession on processing fees (Gold), 0.25% interest concession (Diamond & Platinum)

  • Yes Bank: 0.5% interest discount, 50% off processing fees
    MSME Online

• Railways: Freight & parcel concessions on select routes
  RSJ ZED MSMERymph Quality

• Credit Worthiness: ZED certification improves visibility on GeM and enhances credit rating scores in financial assessments
  MSME Online

4. Why ABS Makes a Difference

At Auspicious Business Solutions (ABS), we demystify this landscape and support MSMEs through:

• Accurate benefit identification: Mapping both central and state-wise incentives relevant to each client

• Documentation & application: Completing forms, evidence, and submission through official portals

• Strategic planning: Maximizing subsidies at each stage—certification, audits, tech upgrades, credit access, and more

• End-to-end handholding: Ensuring clients move from Bronze to Silver, Gold, and beyond, with guidance on unlocking incremental benefits