BRIEF NOTE ON BARCODING

Bar Coding is a series of parallel vertical lines (bars and space), that can be read by bar code scanners. It is used worldwide as part of product packages, as price tags, carton labels, on invoices even in credit card bills and when it is read by scanners, a wealth of data is made available at the users and when use with GS1.UCC (Global India one Numbering Uniform Code Council Inc. USA) numbering system. The bar code become unique and universal and can be recognized anywhere in the world. Bar coding is an international concept today. It facilitates unique product identification through using international symbologies/numbering system, promotes brand image and would enable timely and accurate capture of product information. This would result in wide ranging benefits including lowering of inventory costs, lower overall supply chain costs and hence reduced costs for Indian products, increasing efficiency of Indian industry and adherence to stringent quality assurance norms through product traceability.

     For Micro and Small manufacturing enterprise which have resource constraints but need to compete for global and domestic business opportunities with larger adoption of IT tools to enhance their efficiency and productivity, market accessibility and cost effectiveness is a business imperative today. Bar coding has been in use extensively for the past 25 years worldwide and is now finding increase usage as well across industry sector. Recognised the importance of bar coding O/o DC (MSME), Ministry of Micro, Small and Medium Enterprises, Govt. of India has notified an attractive financial assistance scheme for registered Micro and Small manufacturing enterprise vide their notification No.10(6)/2000-EP&M dt.27th Nov., 2001 for adoption of international numbering systems in bar coding and E-commerce applications w.e.f. Ist January 2002. As per the scheme Micro and Small manufacturing enterprise, who have adopted bar code on or after Ist January, 2002 are now eligible to get the financial assistance 75% (upto Rs.18,750/-) of the one time registration fee paid to GS1 India. Further, it was also decided that SSI/tiny units who got registered for bar coding during the previous year i.e. on or after 01.1.01 will also be eligible for reimbursement of 75% of their one time registration fee.

     The scope of the present scheme has been enhanced w.e.f. 1^st June 2007. Accordingly, it has been decided that 75% (Rs. 3750/-) of the annual fee (recurring) for GS1 company prefix by GS1 India for adoption of bar code certification for the first three years would also be reimbursed to Micro and Small entrepreneurs, in addition to reimbursement of one time registration fee as charged by GS1 (formerly EAN India)

     To obtain financial assistance on bar code certification, Small and Micro manufacturing enterprises may apply application to Dy. Director (MA) office of the Development Commissioner (MSME) Room No-734, 7^th floor Nirman Bhawan New Delhi-110011, with Form VI and Annexure I, II, IIIA,IIIB, & IV:

     The detailed of scheme with the relevant registration forms are available on our website at: www.smallindustryindia.com or www.laghu-udyog.com or www.dcmsme.gov.in and also at GS1 India's website www.gs1india.org . All the Micro and Small manufacturing enterprise who have adopted bar code certificates, are advised to apply for it at the earliest and avail of this financial assistance.

BRIEF NOTE ON BARCODING

Bar Coding is a series of parallel vertical lines (bars and space), that can be read by bar code scanners. It is used worldwide as part of product packages, as price tags, carton labels, on invoices even in credit card bills and when it is read by scanners, a wealth of data is made available at the users and when use with GS1.UCC (Global India one Numbering Uniform Code Council Inc. USA) numbering system. The bar code become unique and universal and can be recognized anywhere in the world. Bar coding is an international concept today. It facilitates unique product identification through using international symbologies/numbering system, promotes brand image and would enable timely and accurate capture of product information. This would result in wide ranging benefits including lowering of inventory costs, lower overall supply chain costs and hence reduced costs for Indian products, increasing efficiency of Indian industry and adherence to stringent quality assurance norms through product traceability.

     For Micro and Small manufacturing enterprise which have resource constraints but need to compete for global and domestic business opportunities with larger adoption of IT tools to enhance their efficiency and productivity, market accessibility and cost effectiveness is a business imperative today. Bar coding has been in use extensively for the past 25 years worldwide and is now finding increase usage as well across industry sector. Recognised the importance of bar coding O/o DC (MSME), Ministry of Micro, Small and Medium Enterprises, Govt. of India has notified an attractive financial assistance scheme for registered Micro and Small manufacturing enterprise vide their notification No.10(6)/2000-EP&M dt.27th Nov., 2001 for adoption of international numbering systems in bar coding and E-commerce applications w.e.f. Ist January 2002. As per the scheme Micro and Small manufacturing enterprise, who have adopted bar code on or after Ist January, 2002 are now eligible to get the financial assistance 75% (upto Rs.18,750/-) of the one time registration fee paid to GS1 India. Further, it was also decided that SSI/tiny units who got registered for bar coding during the previous year i.e. on or after 01.1.01 will also be eligible for reimbursement of 75% of their one time registration fee.

     The scope of the present scheme has been enhanced w.e.f. 1^st June 2007. Accordingly, it has been decided that 75% (Rs. 3750/-) of the annual fee (recurring) for GS1 company prefix by GS1 India for adoption of bar code certification for the first three years would also be reimbursed to Micro and Small entrepreneurs, in addition to reimbursement of one time registration fee as charged by GS1 (formerly EAN India)

     To obtain financial assistance on bar code certification, Small and Micro manufacturing enterprises may apply application to Dy. Director (MA) office of the Development Commissioner (MSME) Room No-734, 7^th floor Nirman Bhawan New Delhi-110011, with Form VI and Annexure I, II, IIIA,IIIB, & IV:

     The detailed of scheme with the relevant registration forms are available on our website at: www.smallindustryindia.com or www.laghu-udyog.com or www.dcmsme.gov.in and also at GS1 India's website www.gs1india.org . All the Micro and Small manufacturing enterprise who have adopted bar code certificates, are advised to apply for it at the earliest and avail of this financial assistance.

Credit Guarantee Fund Scheme for MICRO AND SMALL ENTERPRISES

Introduction

                    There are an estimated 13.4 million micro and small enterprises (MSEs) in the country at the end of March 2008, providing employment to an estimated 32.3 million persons. The MSE sector contributes about 39% of the manufacturing sector output and 33% of the nation's exports. Of all the problems faced by the MSEs, non-availability of timely and adequate credit at reasonable interest rate is one of the most important. One of the major causes for low availability of bank finance to this sector is the high risk perception of the banks in lending to MSEs and consequent insistence on collaterals which are not easily available with these enterprises. The problem is more serious for micro enterprises requiring small loans and the first generation entrepreneurs.
2. The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000 and is operational with effect from 1st January 2000. The corpus of CGTMSE is being contributed by the Government and SIDBI in the ratio of 4:1 respectively and has contributed Rs.1584.05 crore to the corpus of the Trust up to June 30, 2008. As announced in the Package for MSEs, the corpus is to be raised to Rs.2500 crore by the end of 11th Plan.


Eligible Lending Institutions

3. The institutions, which are eligible under the scheme, are scheduled commercial banks (Public Sector Banks/Private Sector Banks/Foreign Banks) and select Regional Rural Banks (which have been classified under 'Sustainable Viable' category by NABARD). National Small Industries Corporation Ltd. (NSIC), North Eastern Development Finance Corporation Ltd. (NEDFi) and SIDBI have also been made eligible institutions. As on June 30, 2008, there are 65 Member Lending Institutions (MLIs) of the Trust, comprising 28 Public Sector Banks, 14 Private Sector Banks, 20 Regional Rural Banks and 3 other Institutions viz., NSIC, NEDFI and SIDBI.

Eligible Credit Facility

4. The credit facilities which are eligible to be covered under the scheme are both term loans and working capital facility up to Rs.50 lakh per borrowing unit, extended without any collateral security or third party guarantee, to a new or existing micro and small enterprise. For those units covered under the guarantee scheme, which may become sick owing to factors beyond the control of management, rehabilitation assistance extended by the lender could also be covered under the guarantee scheme. It is noteworthy that if the credit facility exceeds Rs.50 lakh, it may still be covered under the scheme but the guarantee cover will be extended for credit assistance of Rs.50 lakh only. Another important requirement under the scheme is that the credit facility should be availed by the borrowing unit from a single lending institution. However, the unit already assisted by the State Level Institution/NSIC/NEDFi can be covered under the scheme for the credit facility availed from member bank, subject to fulfillment of other eligibility criteria. Any credit facility in respect of which risks are additionally covered under a scheme, operated by Government or other agencies, will not be eligible for coverage under the scheme.

Guarantee Cover

5. The guarantee cover available under the scheme is to the extent of 75 per cent of the sanctioned amount of the credit facility. The extent of guarantee cover is 80 per cent for (i) micro enterprises for loans up to Rs.5 lakh; (ii) MSEs operated and/or owned by women; and (iii) all loans in the North-East Region. In case of default, Trust settles the claim up to 75% (or 80% wherever applicable) of the amount in default of the credit facility extended by the lending institution. For this purpose the amount in default is reckoned as the principal amount outstanding in the account of the borrower, in respect of term loan, and amount of outstanding working capital facilities, including interest, as on the date of the account turning Non-Performing Asset (NPA).

Tenure of Guarantee

6. The Guarantee cover under the scheme is for the agreed tenure of the term loan/composite credit. In case of working capital, the guarantee cover is of 5 years or block of 5 years.

Fee for Guarantee

Credit Guarantee Fund Scheme for MICRO AND SMALL ENTERPRISES

Introduction

                    There are an estimated 13.4 million micro and small enterprises (MSEs) in the country at the end of March 2008, providing employment to an estimated 32.3 million persons. The MSE sector contributes about 39% of the manufacturing sector output and 33% of the nation's exports. Of all the problems faced by the MSEs, non-availability of timely and adequate credit at reasonable interest rate is one of the most important. One of the major causes for low availability of bank finance to this sector is the high risk perception of the banks in lending to MSEs and consequent insistence on collaterals which are not easily available with these enterprises. The problem is more serious for micro enterprises requiring small loans and the first generation entrepreneurs.
2. The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000 and is operational with effect from 1st January 2000. The corpus of CGTMSE is being contributed by the Government and SIDBI in the ratio of 4:1 respectively and has contributed Rs.1584.05 crore to the corpus of the Trust up to June 30, 2008. As announced in the Package for MSEs, the corpus is to be raised to Rs.2500 crore by the end of 11th Plan.


Eligible Lending Institutions

3. The institutions, which are eligible under the scheme, are scheduled commercial banks (Public Sector Banks/Private Sector Banks/Foreign Banks) and select Regional Rural Banks (which have been classified under 'Sustainable Viable' category by NABARD). National Small Industries Corporation Ltd. (NSIC), North Eastern Development Finance Corporation Ltd. (NEDFi) and SIDBI have also been made eligible institutions. As on June 30, 2008, there are 65 Member Lending Institutions (MLIs) of the Trust, comprising 28 Public Sector Banks, 14 Private Sector Banks, 20 Regional Rural Banks and 3 other Institutions viz., NSIC, NEDFI and SIDBI.

Eligible Credit Facility

4. The credit facilities which are eligible to be covered under the scheme are both term loans and working capital facility up to Rs.50 lakh per borrowing unit, extended without any collateral security or third party guarantee, to a new or existing micro and small enterprise. For those units covered under the guarantee scheme, which may become sick owing to factors beyond the control of management, rehabilitation assistance extended by the lender could also be covered under the guarantee scheme. It is noteworthy that if the credit facility exceeds Rs.50 lakh, it may still be covered under the scheme but the guarantee cover will be extended for credit assistance of Rs.50 lakh only. Another important requirement under the scheme is that the credit facility should be availed by the borrowing unit from a single lending institution. However, the unit already assisted by the State Level Institution/NSIC/NEDFi can be covered under the scheme for the credit facility availed from member bank, subject to fulfillment of other eligibility criteria. Any credit facility in respect of which risks are additionally covered under a scheme, operated by Government or other agencies, will not be eligible for coverage under the scheme.

Guarantee Cover

5. The guarantee cover available under the scheme is to the extent of 75 per cent of the sanctioned amount of the credit facility. The extent of guarantee cover is 80 per cent for (i) micro enterprises for loans up to Rs.5 lakh; (ii) MSEs operated and/or owned by women; and (iii) all loans in the North-East Region. In case of default, Trust settles the claim up to 75% (or 80% wherever applicable) of the amount in default of the credit facility extended by the lending institution. For this purpose the amount in default is reckoned as the principal amount outstanding in the account of the borrower, in respect of term loan, and amount of outstanding working capital facilities, including interest, as on the date of the account turning Non-Performing Asset (NPA).

Tenure of Guarantee

6. The Guarantee cover under the scheme is for the agreed tenure of the term loan/composite credit. In case of working capital, the guarantee cover is of 5 years or block of 5 years.

Fee for Guarantee

For registered Small & Micro manufacturing enterprises with DI/DIC

This is administered through the Single Point Registration Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by Central Government. Other facilities include tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases - for individual MSMEs

For registered Small & Micro manufacturing enterprises with DI/DIC

This is administered through the Single Point Registration Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by Central Government. Other facilities include tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases - for individual MSMEs

NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME (NMCP) UNDER XI PLAN

S.No.	Name of the Scheme	Status of Scheme
1	Marketing Support/Assistance to MSMEs(Bar Code)	Available
2	Support for Entrepreneurial and Managerial Development of SMEs through Incubators	Available
3	Enabling Manufacturing Sector to be competitive through Quality Management Standard & Quality Tech. Tools (QMS/QTT)	Available
4	Building Awareness on Intellectual Property Rights (IPR) for MSME	Available
5	National Programme on Application on Lean Manufacturing(LEAN)	Available
6	Mini Tool Rooms proposed to be set up by Ministry of MSME (MTR)	Available
7	Promotion of ICT in Indian Manufacturing Sector (ICT)	Under Construction
8	Technology and Quality Upgradation Support to MSMEs	Under Construction
9	Design Clinic Scheme for design expertise to Manufacturing sector (DESIGN)	Available
10	Marketing Assistance & Technology Up-gradation Scheme for MSMEs.	Available

Import Export Code | Import Export Code in Ahmedabad | MSME India