Assistance for ZED Certification: 50% Subsidy Up to ₹1 Lakh for MSMEs — Frequently Asked Questions

It covers 50% of the charges a unit incurs for Zero Defect Zero Effect Certification, with a maximum of ₹1,00,000. If you have already taken support from the Government of India for the same certification, that amount is deducted first and the 50% is calculated on what remains.

New manufacturing or service units in the MSME category can apply, and so can existing MSME manufacturing or service units that are expanding or diversifying. The unit has to be located in the Union Territory of Dadra & Nagar Haveli and Daman & Diu, must have started commercial production on or after 20 May 2022 and by 19 May 2027, and must file its claim within a year of the ZED certificate being issued.

Both. The eligibility wording covers manufacturing and service units alike, as long as they sit in the MSME segment and satisfy the location and production-date conditions.

There is no single closing date for submissions. The scheme itself runs until 19 May 2027, but your own deadline comes from the certificate — the application has to be submitted within one year of the ZED certification being issued. So the certificate date, not the scheme end date, is what you need to track.

The scheme is framed for the MSME segment, and the unit's MSME status is one of the points verified during assessment. Proof of MSME registration is among the documents normally uploaded with the application, along with the ZED certification, details of commercial production commencement and financial statements.

The mandatory set typically includes proof of MSME registration, the ZED certification, evidence of when commercial production commenced, and financial statements. All of these are attached to the Common Application Form on the portal before you submit.

No. This is a subsidy, not an investment. The support is a reimbursement of certification charges, so no shares, profit share or repayment obligation arises for the unit.

The process is fully online. Register on the official portal with your details, verify your email through the link sent to your inbox, and confirm your mobile number using the OTP 111111. You then log in with the mobile number and PIN emailed to you, open the 'Departments & Services' tab, scroll down to 'District Industries Centre DD & DNH' and click through to the Investment Promotion Scheme application. Fill in the Common Application Form, upload every mandatory document, recheck the entries and press Submit. Application-related queries go to the District Industries Centre helpdesk.

ZED certification signals two things — the product leaves the plant without defects, and the process leaves behind no damaging impact. By underwriting assessment and certification, the administration wants local MSMEs to adopt quality tools, run energy-efficient operations, keep improving their products and processes, produce in an environmentally responsible way, and build a workforce in the territory that is skilled in ZED manufacturing and certification. The larger context is the Make in India push and the competitiveness of Indian-made goods.

It is administered by the Department of Industries, U.T. Administration of Dadra & Nagar Haveli and Daman & Diu, as a sub-scheme of the Investment Promotion Scheme (IPS) for MSMEs — the territory's wider incentive programme, originally brought in during 2015 and now extended through May 2027.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Assistance for ZED Certification: 50% Subsidy Up to ₹1 Lakh for MSMEs, though having it can strengthen your application and unlock other benefits.