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~1I1 ISTR\' OF ~IICRO. SMALL & ~IEDIU~1 ENTERPRISES GOVERNI\1E 'T OF INDIA

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Nirman Bhawan. 7" Floor • Mautana Azad Road, New Delhi·IIO 108

Ph: EPAX-23063800, 23063802, 23063803,23063804,23 063805&23063806 NO.17/2019/PMAC/ZED Dated: 07.01.2020

Subject: Minutes of the Meeting of the Sub-Committee of I" PMAC of Financial Support to MSMEs under ZED Certification Scheme" as one component of CLCS-TUS held on 24.12.2019 - reg.

I am directed to forward a copy of the Minutes of the Meeting of the Sub-Committee of I" PMAC of Financial Support to MSMEs under ZED Certification Scheme" as one component of CLCS-TUS held on 24.12.2019 in the Committee Room of this office under the Chairmanship of Deputy Director General is enclosed herewith for kind necessary action as per the decision taken in the meeting.

information and further

#7' ~J·.2".2o (Dhanendra Prasad)

Asstt. Director Email: dhanendra.p@nic.in

Encl: As above

To,

I. Economic Advisor (IFW), Ministry of MSME, Udyog Bhawan, Ph:O II 23063433, Email: ds.negi85@nic.in

2. Sh Shubhendu Kumar, Sr. Technical Director, NIC, % DC (MSME), Email: shub@nic.in 3. Sh. M K Saraswat, Director, (NMCP), % DC(MSME), Ph: 011- 23062561 , Email:

manojsaraswat 1963@gmai1.com 4. Sh. Devaki andan, Under Secretary, % DC (MSME), irman Bhawan, Ph:O 11 23061461,

Email: dn.saraswat@nic.in 5. Sh. R. Panneerselvam, In-Charge, MIU Secretariat, PPDC Agra, Foundry agar, Agra -

282006 Ph:9760547805, Email: paselvam@gmai1.com 6. Sh. I-U.S. Pasricha, Head CMD-I, B15, New Delhi. E-mail: cmd1@bis.gov.in Tel: 01123231903 7. Secretary General/Sr. Director/Director/Principal Advisor/Dy. Director/ Asstt. Director, ZED,

QCI Institution of Engineers Building, IlndFIoor, 2 - Bahadur Shah Zafar Marg, ew Delhi - 110002. E-mail: sg@qcin.org a.raj@qcin.org raj.zed@qcin.org ram.zed@qcin.org akjain.zed@qcin.org mohit.zed@qcin.org mahavir.zed@qcin.org

8. President, SME Forum, India SME Forum, 404, Durga Chambers, Near Hard Rock Cafe, Veera lndl. Estate, Veera Desai Road, Andheri (W), Mumbai 400 053 Ph: 9821083210, Email: president@indiasmeforum.org .

9. Director General, SME Forum, India SME Forum, 404, Durga Chambers, Near I-lard Rock Cafe, Veera Indl. Estate, Vccra Desai Road, Andheri (W), Mumbai 400' 053 Ph: 9821083210, Email: sushma@indiasmeforum.org ajit@indiasmeforum.com

10. Sh. Amit Sanghvi, Consultant, ClI, The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, ew Delhi -110 003, Ph: 011- 24629995, Email: amit.sanghvi@cii.in

Copy for Information to: 1. PS to DOG (DPS), % DC (MSME). 2. PS to JDC (MK), % DC (MSME)

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Ver 327.12.19

Minutes of the meeting of the Sub Committee of 1st Project Monitoring & Advisory Committee (PMAC) of "Financial support to MSMEs in ZED certification Scheme" as one component of CLCS - TUS Scheme of % DC(MSME) held on 24.12.2019 at % DC(MSME), New Delhi- reg.

The meeting of the Sub Committee of 1st Project Monitoring & Advisory Committee (PMAC) of "Financial support to MSMEs in ZED certification Scheme" as one component of CLCS - TUS Scheme of % DC(MSME) held on 24.12.2019 at % DC(MSME), New Delhi, under the Chairmanship of Deputy Director General(DPS), Office of DC(MSME), Nirman Bhawan, New Delhi.

Attendance sheet placed at Annexure-1

The proceedings and outcome are briefly summarized below:

Agenda Items, discussion and decision taken :-

I S.No. Agenda Decision

I Agenda Presentation on draft simplified Operational Guidelines of ZED The draft simplified Operational Guidelines of ZED Scheme were presented to the Nos. 1 Scheme sub-committee and members were asked to give their views on the same.

Modified version of the guideilines after incorporating the views and suggestions f the members are placed at F/A. After the approval of chairman PMAC, the same shall be sent to implementing agencies for comments.

I Agenda Discussion and approval of Action Plan Target 2019-20.at Action plan shall be considered after the operational guidelines are approved by item 2 Annex-lA' PMAC

Agenda During FY 2019-20, the Sanction order dt. 30/08/2019 were Following MSME-Dls have taken advance for organizing the awareness item 3 issued to all MSME-Dls for organization of Awareness programme which were planned even after 25/11/2019. The committee directed

programme on ZED Scheme which has been withdrawn by to hold the advance till new operational guidelines come into existence for JDC(MK) on 25/11/2019 implementation of ZED scheme. Thereafter, the fund can be utilized by concerned

Ver 327.12.19

MSME Dis as per the action plan.

S.No. MSME-DI No. of Date planned Remarks Awaren ess

I program me I

1 Goa 02 26.11.2019 I Organized the I I 27.11.2019 programme

2 Ahemadabad 102

I 12.12.2019 I 13.12.2019 I

3 Thrissure 03 I 03.12.2019

I I 04.12.2019 ! 05.12.2019

,4 Guwahati

101 29.11.2019 Advance given to

I I venue '5 Cuttack 01 I 03.12.2019

I Ground work done I

I I for organizing the programme I

6 Hyderabad 02 I 26.11.2019 I

I 05.12.2019 7 Hubli 03 I 04.12.2019 Expenditure incurred I I

06.12.2019 21,200/+25,396+24,800 11.12.2019 i from the advance

withdrawn 8 ~gra 06 -- Advance have been drawn

In this regard, letter maybe issued to all MSME Dis. I

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Agenda National and local publicity of ZED Scheme item 4

Agenda Draft RFP for empanelment of consultants for ZED Scheme. Nos. 5

Agenda Top ten incentives at Annex- 'C' recommended by taskforce item 6

Agenda Pending Liabilities of QCI: The Sub Committee constituted The committee decided to discuss this issue in a meeting on 30/12/2019. Nos. 7 under 1st PMAC on ZED Scheme shall look into the issue and

settle it along with taking over the assets created by QCI under the scheme{Refer MoM of i" PMAC dated 04.12.2019 at ( F/ 'X')

(i) The ZED Certification Scheme has been implemented by Quality Council of India (QCI) as NMIU since inception (2016-17) of the scheme till 31.03.2018 as per old ZED Scheme guidelines. Rs. 21.00 Crore have been sanctioned & released during FY 2019-20 to PPDC, Agra for clearing the pending liabilities of ZED scheme along with LMCS & Design clinic scheme

(ii) QCI has to submit the pending liabilities of FY 2018 - 19 & 2019 - 20, if any w.r.t the remaining activities of FY 2017 -18. QCI reported expenditure of Rs 3.83 Crore from the unspent balance of fund of FY 2017-18 without obtaining any financial approval for utilizing the fund during FY 2018-19 .. QCI also indicated expenditure of Rs 40 lakh during FY 2019-20 without obtaining any financial approval for expenditure from the competent authority

{Ex-post facto approval of the expenditure reported by QCI for

PPDC Agra to develop national level publicity programme through DAVP.

Draft RFP at Annex- 'B' for empanelment of consultants is to be put up in file for concurrence of IFW.

The committee decided to write to the ministries including ministry of finance to

make ZED certification mandatory for taking benefit under other schemes. The same component needs to be added in other schemes of this ministry.

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FY 2018-19 and FY 2019-20.in the UC and presentation made on 27.11.2019 at (F/ ID') may be considered by the committee).

(iii) QCI has been issued a letter Ref F. No.17/2016/NMCP/ZED/Sanction/QCI dated 01.10.2019 at ( F/ 'E') to deposit interest on Rs 1,48,70,000/- refunded by QCI against the Sanction Order dated 28.09.2016 issued to QCI during FY 2016-17. ( F.No. 17/2016/NMCP/ZED/Sanction/QCI, page 20/N- 38/N- may kindly be seen)

(iv) The issue "Clarification/Justification regarding expenditure made in Branding & Promotion and Miscellaneous Expenses Heads under ZED Certification Scheme which are not as per the targets allocated vide minutes of 1st SSC meeting held on 22.08.2016 and Sanction order dated 28.09.2016 issued to QCI during FY 2016-17. In this context, An amount of Rs 1,37,36,855/- is under submission. IFW has directed AW to comments on Para 6.1 to 6.4 of the note Page 39/N- and 40/N­ of the File No. 17/2016/NMCP/ZED/Sanction/QCI and re­ submit the file. ( F. No. 17/2016/NMCP/ZED/Sanction/QCI, page 39/N- and 40/N- may kindly be seen)

(v) On examination of Audit Para regarding II Non achievement of targets and discrepancies in UCs under Zero Defect Zero Effect (ZED) Scheme, Compliance Audit Requisition No. 22 dated 22.03.2019 of % DC (MSME) for the FY 2017-18, QCI has been issued another letter F. No.17/2017/NMCP/ZED/ Audit dated 18.10.2019 at ( F/ 'G/) to refund an amount of Rs 1,26,05,266/- with interest @10% per annum as per the sanction order No. 17/2016/NMCP/ZED/Sanction/QCI dated 22.09.2017. i

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( F.No. 17/2017/NMCP/ZED/Audit page 5/N- to 14/N- may kindly be seen)

Note: Audit Comments: Compliance to the complete para would be reviewed during next audit (2018-19) vide letter 'from 0/0 the Principal Director of Audit Economic and Service Ministries letter .No. AMG-III/2(3}/IR-2/DC-MSME/2019-20/296 dated 25.11.2019 may kindly be seen} at (F/ I Audit)

(vi) On consolidated examination of the Utilization Certificates of the FY 2016-17 & 2017-18 submitted by QCI as NMIU of the Scheme by PPDC, Agra. The Amount of Rs. 1,88,02,385/- is disputed for FY 2016-17 as per Annexure 'E" and Rs. 2,82,50,818/- is disputed for FY 2017-18 as per Annexure 'F' . The total disputed amount for settlement with QCI is Rs. 4,70,53,203/- .In this context, two letters have been issued to QCI, first one dated 01.10.2019 at (F/ 'H') for depositing the interest of Rs. 37,17,500/- as an interest on the Rs. 1,48,70,000/- refunded by QCI during April 2019 and 2nd letter dated 18.10.2019 at (F/ '1') issued to QCI for refund of an Amount of Rs. 1,26,05,266 + Interest as applicable calculated against the UCl at (F/ fUC1') submitted by QCI for FY 2017-18, these amount are included in the total disputed amount of Rs 4,70,53,203/-

Committee may take a view for vetting the disputed amount for further necessary directions.

(vii) An UC dated 04.09.2019 at (F/ 'JII) submitted by QCI is to be examined for any discrepancy and pending liabilities against it.

(viii) Handing/Taking over of assets created by QCI under ZED

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scheme since inception. A consolidated list may be prepared by QCI for submission to the Committee.

(ix) Closure of payment gateway initiated by QCI as NMIU under ZED Scheme. In this regards, letter dated 16.12.2019 at (F/ 'K') received from QCI is put up for kind consideration of the sub -committee for further necessary directions

The meeting ended with vote of thanks to chairman and all the members.

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ATTENDANCE SHEET of Sub-committee of 1st PMAC, ZED ANNEXURE-l

Sr Designation Name Contact details

no. Ph no and email address

1 Dy. Director General, % DC MSME, S. D.P. Srivasata dprasad.s@nic.in

Vice chairman

2 JDC handling scheme in % DC(MSME), Member Mrs Mandeep Kaur 9971155500

Secretary mandeepkaur@ias.nic.in

3 Representatives of SIS Sh. H.J.S. Pasricha, Head CMD-I 01123231903

cmd1@bis.gov.in

4 Director, Nodal officer handling scheme in 0/0 Sh Manoj Kumar Saraswat 9413794032

DC(MSME) manojsaraswat1963@gmail.com

5 In- Charge, NMIU Secretariat Sh. R Panneerselvam 9760547805

paselvam@gmail.com,

6 Representative of NIC Shubhendu Kumar, Senior Technical -

Director

7 Representative of IFW Sh. Devki Nandan, Under Secretary dn.saraswat@nic.in

8 Representatives of QCI R.N.Shukla, Director 9167684875

ram.zed@gcin.in

9 Representatives of SME Forum Sh. Vi nod Kumar, President ISF 9821083285

president@indiasmeforum.org

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10 Representatives of CII Sh. Amit Sanghvi, Principal Counsellor 9818688719

Amit.sanghvi@)cii.in

11 India SME Forum Ms. Sushma Morthania, Director General 9821083210

12 India SME Forum Sh. Ajit Kumar 9967485173

ajit@)indiasmeforum.com

13 India SME Forum Bhavya Sharma 7710000933

bhavya@)indiasmeforum.com

14 QCI Sh. A.K.Jain, Principal Advisor 9910176001

Akjian.zed@)gcin.org

15 QCI Sh. Mohit Singh, Deputy Director 9910317642

mohit.zed@)gcin.org

16 , QCI Sh. Mahavir Tiwari, Assistant Director 9450239133 , Mahavir.zed@)gcin.org

17 QCI Sh. Akhilesh Kumar, Analyst 9205370970

akhilesh@gcin.org

18 0/0 DC(MSME) Sh. Rakesh Kumar, Dy. Director 9871499767

Nrks96@yahoo.com,

19 0/0 DC(MSME) Sh. Udbhav Mishra, Consultant -

20 0/0 DC(MSME) Sh. Taman Kumar, Consultant -

21 PPDC, Agra Sh. Vikas Verma -

8