Introduction
SME has emerged as dynamic and vibrant and is making significant contribution to industrial production, export and employment generation. The process of economic liberalisation and market reforms has opened up Indian SMEs to global competition. In order to enhance the competitive strength of SME, the Government has introduced an incentive scheme for their technological upgradation/quality improvement and environment management. The scheme provides incentives to those SMEs/ancillary undertakings who have acquired ISO 9000/ISO 14001/HACCP certification. The scheme is enlarged so as to include reimbursement of expenses for acquiring ISO 14001 certification.
ISO Certification is an international certification that states that the holder (organization) of the certificate and its products adhere to the set international standards of quality. The certificate is issued to a certain organization after the ISO carries out various quality assessments.
If an organization holds an ISO 9001 Certificate, it indicates that the company’s product meets international quality standards and regulations. In order to receive this certification, the company has to go through a rigorous and detailed process that assesses every aspect of its product. An ISO 14000 certification deals with environmental management instead and is similarly difficult to obtain.
The ISO standards comprise five documents, which are as follows:
- ISO 9000- Quality Management and Quality Assurance Standards – Guidelines for selection and use.
- ISO 9001- Quality systems – Model for quality assurance in design, production, installation and servicing.
- ISO 9002- Quality systems – Model for quality assurance in production and installation.
- ISO 9003- Quality systems – Model for quality assurance in final inspection and test.
- Quality management and quality system elements
MSMEs with these types of certifications are able to sell their goods and products in both international and national markets. Attaining this certification needs a lot of funds which is why the Development Commissioner (MSME) offers a scheme for MSMEs to avail this certification. The scheme is called ISO 9001/ ISO 140001 Certification Reimbursement Scheme.
ISO 9001/ ISO 14001 Certification Reimbursement Scheme
The ISO 9001/ ISO 14001 Certification Reimbursement Scheme is very helpful for MSMEs as it helps them acquire otherwise expensive ISO Certification by providing them with adequate funds and financial aid. Economic liberalism and market reforms have opened up Indian SMEs to global competition. Therefore, in order to boost the SMEs of the country up to a global standpoint, the government launched this incentive scheme for technological up-gradation and quality improvement.
Some highlights of the scheme’s features are:
- The charges relating to the procurement of an ISO 9001/ ISO 14001 certification by the organization are eligible for reimbursement under this scheme. This scheme enables organizations to be reimbursed for the costs associated with obtaining certification, which can help improve quality management and environmental management systems.
- The maximum amount you can be reimbursed is 75% of the total cost of the certification, up to a limit of Rs. 75,000.
- The process of reimbursement takes place when the Entrepreneurship Memorandum Number is provided by the Organization.
- Permanently Registered Business Enterprises ( Tiny/Small Scale/ ancillary) are eligible to avail this reimbursement incentive scheme.
- The application of the scheme is to be submitted only to the Director of MSME-DI by the applicant as per the regional area where the units are located.
- It is required for the applicants to enclose the invoice and receipts of the payment made to the certifying bodies, consultants, and other expenses, with annexures, in order to be eligible for the expense reimbursement.
Eligibility Criteria for the Scheme
Organizations and industries which fall under the categories listed below are eligible to apply for the scheme and take advantage of its benefits. The eligibility criteria are as follows:
- Companies registered as small scale, tiny, ancillary or Small-Scale Service Business Enterprises (SSSBE).
- SSIs, tiny, ancillary or SSSBE companies which already possess the ISO 9001/ ISO 14001/ HACCP Certification.
Benefits of applying for this scheme
By applying for this scheme, an organization can get 75% reimbursement or Rs. 75,000 reimbursement, whichever is lesser than the total cost of acquiring the ISO 9001/ ISO 14001 Certification.
the Scheme is an ambitious initiative undertaken by the government to make MSMEs and SSIs competitive enough to meet international market standards without worrying about raising funds for certification.
An ISO 14001 certification assures your business partners, investors, competitors, and consumers that you are concerned about the environment and, to protect your environment, you conduct your business in an environment-friendly manner. This has a very good impression and gives the company a good image.
Conclusion
The ISO 9001/ ISO 14001 Certification Reimbursement Scheme is extremely helpful for MSMEs, as it alleviates the expensive costs of ISO Certification by providing them with adequate funding and financial aid. The scheme also offers MSMEs the opportunity to get their businesses certified by international standards, which can help them access new markets and expand their customer base.