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NCEUS prepares another report on Unorganised Sector
Feb '08
The National Commission for Enterprises in the Unorganised Sector (NCEUS), under the Ministry of Micro, Small and Medium Enterprises is finalising yet another report on Unorganised Sector.

After holding discussions with all the stakeholders, it will be finalised and submitted to the Government by February-end 2008. This was stated by Dr. Arjun Sengupta, Chairman, NCEUS at the Editors' Conference on Social Sector Issues.

Earlier NCEUS presented two reports to the Prime Minister, Dr. Manmohan Singh on 5th November, 2007. The two reports are on the 'Financing of Enterprises in the Unorganised Sector' and on 'Creation of a National Fund for the Unorganised Sector' (NAFUS). The recommendation on the creation of a National Fund follows from the first report.

Dr. Arjun Sengupta said that the report on 'Financing of Enterprises in the Unorganised Sector' deals with financing of the enterprises in the non-farm unorganised sector. It examines in depth the status of financing of the sector and deals with deficiencies in institutional infrastructure and constraints in financing this sector.

The Report, besides giving its recommendation on financing has also made a recommendation for the creation of NAFUS. The second Report submitted to the Prime Minister deals in details with the recommendation of creation of NAFUS.

The Report on NAFUS gives the rationale, organizational model, functions and sources of financing of the Fund. The mandate for the creation of this Fund derives from the National Common Minimum Programme of the UPA Government.

Giving the details of the proposed Fund, Dr. Sengupta said, the National Fund proposed by the Commission is envisaged as a statutory body funded by the Central Government and Financial Institutions that will primarily focus on non-farm micro enterprises with investment of less than Rs. Five lakh.

The Commission's report reveals that this segment constitutes 94 per cent of all small enterprises estimated at 58 million in 2007 with a total employment of 104 million.

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