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