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Chapter XI

NATIONAL COMMISSION FOR ENTERPRISES IN THE UNORGANIZED SECTOR (NCEUS)


11.1 The Government of India constituted the National Commission for Enterprises in the Unorganised Sector (NCEUS) on 20.9.2004 to examine the problems being faced by the enterprises in the unorganized/ informal sector. The Commission made recommendations to provide technical, marketing and credit support to these enterprises. The term of the Commission ended on 30.04.2009. infrastructure; technology and markets and suggest measures to provide institutional support and linkages to facilitate easy access to them; (iii) Suggest the legal and policy environment that should govern the informal/unorganized sector for growth, employment, exports and promotion; Examine the range of existing programmes that relate to employment generation in the informal/ unorganized sector and suggest improvement for their redesign; Identify innovative legal and financing instruments to promote the growth of the informal sector; Review the existing arrangements for estimating employment and unemployment in the informal sector, and examine why the rate of growth in employment has stagnated in the 1990s;

11.2 THE TERMS OF REFERENCE


The Terms of Reference of the Commission were as follows:(i) Review of the status of unorganized/ informal sector in India including the nature of enterprises, their size, spread and scope, and magnitude of employment; Identify constraints faced by small enterprises with regard to freedom of carrying out the enterprise; access to raw materials; finance; skills; entrepreneurship development;

(iv)

(v)

(vi)

(ii)

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(vii) Suggest elements of an employment strategy focusing on the informal sector; (viii) Review Indian labour laws, consistent with labour rights, and with the requirements of expanding growth of industry and services, particularly in the informal sector, and improving productivity and competitiveness; and (ix) Review the social security system available for labour in the informal sector, and make recommendations for expanding their coverage.

for the Unorganised Sector (NAFUS); (vi) Definition and Statistical Issues relating to Informal Economy;

(vii) A Special Programme for Marginal and Small Farmers; (viii) Pilot Growth Poles Projects. (ix) Growth Poles Programme for Unorganised Sector Development, Technology Upgradation for Enterprises in the Unorganised Sector and The Challenge of Employment in India An Informal Economy Perspective.

(x)

(xi)

11.3 REPORTS SUBMITTED BY THE NCEUS


11.3.1 The National Commission for Enterprises in the Unorganised Sector (NCEUS) submitted the following reports:(i) National Policy on Urban Street Vendors; Social Security Workers; for Unorganised

11.4 PILOT GROWTH POLES PROJECT FOR THE UNORGANISED SECTOR 11.4.1 The Commission had proposed establishment of Growth Poles in different parts of the country with a view to integrating, within a geographical location, a number of clusters of production units engaged in manufacturing, services and non-farm activities and facilitating the expansion of production and employment in micro and small enterprises. 11.4.2 The Commission had pursued the formation of Growth Poles and requested the Chief Ministers and Chief Secretaries of all the States and UTs for identification and selection of pilot projects of Growth Poles in their respective States. In response, six State Governments have identified

(ii)

(iii)

Comprehensive Legislation for Minimum Conditions of Work and Social Security for Unorganised Workers; Conditions of Work and Promotion of Livelihood in the Unorganised Sector; Financing of Enterprises in the Unorganised Sector; and National Fund

(iv)

(v)

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and submitted proposals for Growth Pole Pilot Projects, i.e., Janjgir-Champa in Chhattisgarh; Kollam in Kerala; Dausa in Rajasthan; Chamoli in Uttarakhand; Howrah in West Bengal and South Western Kamrup in Assam. Out of the above, five State Governments had already submitted their Detailed Project Reports.

a view to identifying the actionable points; (ii) To determine the modalities for implementing the action points and fixing the timelines for implementation; and To coordinate the action by various Ministries/Departments and monitor implementation in a time-bound manner.

(iii)

11.5 CONSTITUTION OF INTERMINISTERIAL GROUP (IMG)


11.5.1 Since the recommendations of the NCEUS as brought out in its various reports involve action(s) by several Ministries and Departments, the Government had set up an Inter-Ministerial Group (IMG) to be chaired by the Secretary, Planning Commission and consisting of ten secretaries with the following Terms of Reference:(i) To examine the recommendations contained in the reports of NCEUS with

11.5.2 The first meeting of this InterMinisterial Group (IMG) was held on 14th November, 2008 under the chairmanship of the Secretary, Planning Commission to consider the reports submitted by NCEUS on Financing of Enterprises in the Unorganised Sector and Creation of a National Fund for the Unorganised Sector (NAFUS). In the meeting a broad consensus emerged in favour of setting of the proposed Fund for support to the unorganized sector enterprises.

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