Scheme for Financial Assistance on Barcode

The identification of the product is via scanning its barcode. Accordingly, barcodes are a series of black bars printed on a product package. Consequently, it contains information regarding the product such as serial number, expiry date, consignor/consignee, etc. Further, this helps to capture data about the product within seconds when scanned with a barcode scanner. These days companies using QR codes which are also widely accepted for especially service industries.

Significance of Barcode 

Primarily, a barcode makes the product life efficient by reducing the inventory costs, processing time and processing speed of products. This is true throughout the supply chain until it reaches the customer. Simultaneously, it keeps a record of sales, production. Furthermore, it helps with sales forecasting and production scheduling. 

It also facilitates the easy exchange of information between buyers and sellers and the mediators. Also, provides several other benefits to an industry that has a major impact on the product and company in the Present market.

Scheme for Financial Assistance on Barcode

Acknowledging the importance of Barcode. Additionally, to promote SSIs (Small Scale Industries) to adapt modern technology the Financial Assistance on Barcode Scheme was introduced. Subsequently, it provides up to 75% fee refurbishment on the one-time registration fee (Under SSI-MDA Scheme). Also, 75% fee refurbishment on an annual recurring fee for the first three years (Under NMCP Scheme) paid to GS1 (Global Standard 1) for using barcodes. 

Objective of the Scheme for Financial Assistance on Barcode

The main objective of financial assistance is to enhance the marketing competitiveness of products from MSMEs. Additionally objectives include:

1. Provide 75% of the one-time registration fee and annual recurring fee (for the first three years) paid by MSEs to GS1 India.
2. To Motivate MSMEs to adapt barcode system through seminars and awareness programs.
3. To Encourage small scale industries to acclimatize the barcode system onto their products.

Benefits Achieved on Adaptation of Barcode System

• Huge impact on boosting the status of respective products in the current market.
• Real-time management of stock.
• Gives a professional output regarding the product.
• Fast and Accurate data capture.
• Automation of data capture, data entry into the current system, Integration of simulation software, and maintenance of a record.

Financial Assistance 

1. Every MSME unit registered after January 1st, 2002, the scheme provides a reimbursement of 75%. However, this is for one- time paid registration fee under the SSI-MDA scheme. 
2. Nevertheless, the MSME from June 1st, 2007, 75% annual recurring fee (for the first three years) is reimbursed to MSEs. This is under the NMCP scheme-Marketing Assistance/Support to MSMEs (Barcode) which is paid to GS1 India. 

Note: The 75% reimbursement does not include any other charges like service taxes, etc.

Eligibility for the Scheme for Financial Assistance on Barcode

Note that, All MSME units throughout the country are targets in the scheme. Consequently, any unit under MSME and uses the barcode service on or after 1st January 2002 is eligible for the reimbursement. However, bear in mind for the annual reimbursement of 3 years, the unit must have registered any date after the 1st of June 2007.

How to Apply for Availing the Benefits of the Scheme 

Eligible MSMEs can approach the nearest office of MSME-DI (Development Institute) and acquire the prescribed application form. Also, they will provide the list of documents along with the formats of supporting documents. Collect the application form and additional documents from the Director, MSME-DI. Or the same can be downloaded from the website HERE

Following the application, one can check whether the application was granted a reimbursement over HERE

Interested MSMEs may approach the GS1, India for registration of Barcodes system at the following offices:

GS1 (Global Standard 1)

Formerly known as EAN India, GS1 is a not-for-profit standards organization. Subsequently, set up by the Ministry of Commerce and Industry, Government of India and other trade organizations. They help Industries in adopting global GS1 standards in their supply chains to enhance efficiency and profitability. Moreover, they are authorized for granting registration for use of Barcodes by the Government of India that are eligible for reimbursement under this scheme. For further information please click on the available LINK HERE.