MSME Schemes: How you can benefit from ISO 9000/ISO 14001 Certification Reimbursement Scheme
Making products meet international standards requires ISO Certifications, but getting it is an expensive affair. To get around this, the government provides reimbursement to SMEs seeking ISO 9000/ISO 14001Certification.
Run by: DCE MSME
Applicable to: MSMEs, SSIs, SSSBEs and related enterprises
As small scale industries develop and grow, they contribute towards the growth of the economy considerably. Moreover, as MSMEs grow, the geographical boundaries of trade diminish as organisations look for international collaborations and international trade. Expanding to international markets helps
MSMEs increase their scale of production and, consequently, their revenue.
However, growing a MSME business is challenging in the face of intense competition prevalent in the market. To survive this competition MSMEs need to ensure that their products meet international quality standards so that they can be easily marketed. That is why MSMEs and small scale industries seek ISO certifications for standardising their products.
What is ISO certification?
ISO certification is an international certification which states that the organisation and its products adhere to international standards of quality. The ISO (International Organisation of Standardisation) conducts various quality assessment tests before issuing the certification to an enterprise.
ISO standards have five documents which are ISO 9000, ISO 9001, ISO 9002, ISO 9003 and guidelines to quality management and quality system elements. The ISO 9000 deals with quality management and quality assurance. If an organisation has ISO 9000 certification it means that the product meets international quality standards and also complies with the relevant regulations. ISO 14000, on the other hand, deals with environment management. It measures what is being done by the enterprise to minimise environmental damage due to its activities, to meet the prescribed environmental regulations and to contribute towards a better environment.
Since ISO certification complies with international standards, MSMEs which avail these certifications become competitive in the national as well as international markets. Availing this certification involves considerable funds and so the DC-MSME offers a funding scheme for MSMEs to apply for this certification. The scheme is called the ISO 9000/ISO 14001 Certification Reimbursement Scheme. Let's understand what the scheme is all about -
What is the ISO 9000/ISO 14001 Certification Reimbursement Scheme?
The ISO 9000/ISO 14001 Certification Reimbursement Scheme helps MSMEs acquire the specified ISO certification by providing them with financial aid. Here are the salient features of the scheme -
- The charges incurred in availing ISO-9000/ISO-14001/HACCP certification are reimbursed under the scheme.
- The limit of reimbursement is up to 75% of the cost incurred in availing the certification subject to a maximum of Rs 75,000
- The reimbursement is done only one time when the organisation provides an Entrepreneurship Memorandum Number.
Who runs the scheme?
The scheme is run by the Development Commissioner of Micro, Small and Medium Enterprises. The scheme is administered by the Development Commissioner of Small Scale Industries (SSI), Ministry of SSI and the Government of India.
Who can apply for the scheme?
Industries and organisations which meet the eligibility criteria of the scheme can apply for the scheme. Eligible organisations include the following -
- Permanently registered small scale, ancillary, tiny or Small Scale Service Business Enterprises (SSSBE)
- SSIs, ancillary, tiny or SSSBE units which have already acquired the ISO-9000/ISO-14001/HACCP certification
How to apply for the scheme?
Interested and eligible enterprises can avail the scheme by filling up an application form and submitting the form with their documents to specified addresses. The format for the application form, the list of documents required and the 'Checklist' for the scheme is available at www.dcmsme.gov.in . SSI units which are permanently registered should submit a fully filled in application form with the required documents to the Development Commissioner - MSME at the office of the Development Commissioner, Ministry of Small, Medium and Micro Enterprises, 7th Floor, A Wing, Nirman Bhavan, Maulana Azad Road, New Delhi -110108.
The ISO 9000/ISO 14001 Certification Reimbursement Scheme is a step in the right direction which would make MSMEs and SSIs competitive enough to meet the standards of the international market without worrying about raising funds for certification.