ZED scheme Current Affairs
Prime Minister Narendra Modi launched the National SC/ST hub and the Zero Defect, Zero Effect (ZED) scheme for Micro, Small and Medium Enterprises (MSMEs) at Ludhiana in Punjab.
Besides, he also presented National Awards to MSMEs. He also distributed 500 traditional wooden charkhas (spinning wheels) among women.
What is National SC/ST hub?
- The objective of the SC/ST (Schedule Castes/Schedule Tribes) Hub is to provide professional support to entrepreneurs from the SC/ST.
- It also seeks to promote enterprise culture and entrepreneurship among the SC/ST population and to enable them to participate more effectively in public procurement.
- It will work towards strengthening market access/linkage, capacity building, monitoring, sharing industry-best practices and leveraging financial support schemes.
Public Procurement Policy, 2012: It specifies that 4% of procurement done by ministries, departments and CPSEs should be done from enterprises owned by SC/ST entrepreneurs.
What is Zero Defect, Zero Effect (ZED) scheme?
- ZED Scheme aims to rate and handhold all MSMEs to deliver top quality products using clean technology. It will have sector-specific parameters for each industry.
- MSME sector is crucial for the economic progress of India and this scheme will help to match global quality control standards.
The slogan of Zero Defect, Zero Effect (ZED) was first mentioned by PM Narendra Modi in his Independence Day speech in 2014. It was given for producing high quality manufacturing products with a minimal negative impact on environment.
- ZED Scheme is meant to raise quality levels in unregulated MSME sector which is engine of growth for Indian economy. MSME sector drives almost 38% of nation’s GDP and around employs 110 million employees.
- The scheme will be cornerstone of the Central Government’s flagship Make in India programme, which is aimed at turning India into a global manufacturing hub, generating jobs, boosting growth and increase incomes.