9.18 ndian onom
(g) Investment in Indian Railways (iv) SFURTI (Scheme of Fund for
towards capital expenditure. Regeneration of Traditional Industries),
The allocations out of the NIF will be decided and
in the government budget. This way, the policy (v) MSECDP (Micro and Small Enterprises-
regarding use of the disinvestment proceeds has Cluster Development Programme)
become flexible enough to adjust to the current Some of the recent initiatives undertaken
socio-economic needs. by the government for the promotion and
development of the MSMEs, have been as given
msme sector below:
(i) UAM (Udyog Aadhar Memorandum):
As per the SMSE Act, 2006 the MSME are
The UAM scheme, notified in September
classified in two classes—manufacturing and
2015, to promote ease of doing business.
service enterprises—and they are defined in
Under it, entrepreneurs just need to file
terms of investment in plant & machinery52. The
an online entrepreneurs’ memorandum
Micro, Small and Medium Enterprises (MSMEs)
to get a unique Udyog Aadhaar Number
play a very vital role in the economy—3.6
(UAN)—a significant improvement over
crore such units employ 8.05 crore people and
the earlier complex and cumbersome
contribute 37.5 per cent to the country’s GDP.
procedure.
The sector has huge potential for helping address
structural problems like, unemployment, regional (ii) Employment Exchange for Industries:
imbalances, unequal distribution of national To facilitate match making between
income and wealth. Due to comparatively low prospective job seekers and employers an
capital costs and their forward-backward linkages employment exchange for industries was
with other sectors, they are headed to play a crucial set up in June 2015 (in line with Digital
role in the success of the Make in India initiative. India).
(iii) Framework for Revival and Rehabilitation
Realising the importance of the sector, over
of MSMEs: Under this (May 2015),
the time, the government has undertaken a
banks need to constitute a Committee
number of schemes for the establishment of new
for Distressed MSMEs to prepare a
enterprises and development of existing ones like:
Corrective Action Plan (CAP) for them.
(i) PMEGP (Prime Minister’s Employment
(iv) ASPIRE (Promoting Innovation and Rural
Generation Programme),
Entrepreneurs): Launched in March
(ii) CGTMSE (Credit Guarantee Trust 2015 with the objective of setting up a
Fund for Micro and Small Enterprises) network of technology and incubation
(iii) CLCSS (Credit Linked Capital Subsidy centres to accelerate entrepreneurship
Scheme) for Technology Upgradation, and promote start-ups for innovation and
52. As per the SMSE Act, 2006, the classification is for
entrepreneurship in rural and agriculture-
Micro enterprises investment up to Rs. 25 lakh in based industry.
manufacturing s. la h in services for Small
enterprises between Rs. 25 lakh to Rs. 5 crore in
manufacturing etween s. la h to s. crore in sectoral concerns
services and for Medium enterprises between Rs. 5 to
s. crore in manufacturing s. to s. crore in Due to several global and domestic reasons two
services. industrial sectors, namely – steel and aluminium