DAILY NEWS ANALYSIS

20 July, 2021
25 Min Read

Every scheme for Employment generation in India

The government of India has taken a number of initiatives for promoting employment generation in the country during the corona pandemic.

1) Financial package

Financial package of more than rupees twenty seven lakh crore under “Aatma Nirbhar Bharat” has been launched interalia, to create employment opportunities for migrant workers, workers of organized and unorganized sectors, strengthen of MSME sector and promote the rural economy. It includes a number of initiatives for all these sectors.

2) Aatmanirbhar Bharat Rojgar Yojana (ABRY)

Aatmanirbhar Bharat Rojgar Yojana (ABRY) has been launched w.e.f. 1st October 2020 to incentivize employers for the creation of new employment along with social security benefits and restoration of employment.
This scheme is implemented through EPFO seeks to reduce the financial burden of employers and encourage them to hire more workers.
Under ABRY, the Government of India is providing for a period of two years, both the employees’ share (12% of wages) and employers share’ (12% of wages) of contribution or only employees’ share of contribution depending on employment strength of the EPFO registered establishments, for new employees whose monthly wage is less than Rs. 15,000/- per month.
The new employees under the scheme include those who lost their jobs during Covid-19 and didn’t join any EPF-covered establishment up to 30.09.2020.
The terminal date for registration of beneficiaries under the scheme has been extended from 30th June, 2021 to 31st March, 2022.

3) Pradhan Mantri Garib Kalyan Yojana (PMGKY)

Under Pradhan Mantri Garib Kalyan Yojana (PMGKY), the Government of India has contributed both 12% employer’s share and 12% employee’s share under the Employees Provident Fund (EPF), totalling 24% of the wage for the wage month from March to August 2020 for the establishments having up to 100 employees with 90% of such employees earning less than Rs. 15000/-.
This has helped in providing employment in EPFO registered establishments during post Covid period.
Statutory PF contribution of both employer and employee was reduced to 10% each from the existing 12% each for all establishments covered by EPFO for three months i.e. May to July 2020.

4) PM- SVANidhi Scheme

PM SVANidhi was launched by the Ministry of Housing and Urban Affairs, on June 01, 2020.
Its objective is to provide affordable Working Capital loans to street vendors to resume their livelihoods that have been adversely affected due to the Covid-19 lockdown.
Under the Scheme, the vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis.
There will be no penalty on early repayment of loan.
SIDBI will implement the PM SVANidhi Scheme under the guidance of the Ministry of Housing & Urban Affairs (MoHUA). It will also manage the credit guarantee to the lending institutions through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
PM- SVANidhi Scheme has facilitated collateral-free working capital loan up to Rs.10,000/- for one-year tenure to street vendors, to help them resume their businesses.
RBI and the Government of India have introduced measures to infuse liquidity in the economy to sustain the market economy and raise the level of employment.

Other Schemes

Besides the above, Government has taken various other steps for generating employment in the country encouraging various projects involving substantial investment and through public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Deendayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM). Wage under MGNREGS has been increased from Rs. 182 per day to Rs. 202 per day.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

It was started in 10^th five year plan in 2005. It works under Ministry of Ministry of Rural Development.
Funding: Centrally Sponsored with the pattern 90:10.
Providing provides a legal guarantee of at least 100 days of unskilled manual work in rural areas.
Any member > 18 years (Adult members) of a rural household, willing to do unskilled manual work, may apply to the local Gram Panchayat (which will issue a Job Card). Minimum 14 days of Employment.
If Employment is not given within 15 days, then daily unemployment allowance given by States.
Wages to be given according to Minimum Wages Act, 1948. Minimum Wages is increased to 202 Rs. (early 175 Rs.)
Atleast 1/3rd beneficiaries shall be women.
Work site facilities such as crèche, drinking water, shade have to be provided.
Projects will be recommended by Gram Sabha (does Social audit too) and approved by the Zilla panchayat.
Atleast 50% works will be allotted to Gram Panchayats for execution. Permissible works predominantly include water and soil conservation, afforestation and land development works.
60:40 wage and material ratio has to be maintained. No contractors and machinery is allowed.
Center bears 100% wage cost of unskilled manual labour and 75% of material cost including wages.
Grievance redressal mechanisms at State and District level.
Rights based approach. Strengthening Panchayati Raj Institutions is an objective.
Integration with other schemes like PMGSY, Housing for All etc. DBT for the wages.
Work should ordinarily be provided within 5 km radius of the village. In case work is provided beyond 5 km, extra wages of 10% are payable to meet additional transportation and living expenses.
Disbursement of wages has to be done on weekly basis and not beyond a fortnight in any case.
All accounts and records relating to the Scheme should be available for public scrutiny.

National Urban Livelihood Mission (NULM), 2013

Ministry of Housing and Urban Affairs.
MoHUA has been implementing a Centrally Sponsored Scheme Swarna Jayanti Shahari Rozgar Yojana (SJSRY) since 1997 which has been restructured as DAY - National Urban Livelihoods Mission since 2013.
It is for all cities with a population of > 1 lakh or more. All statutory towns.
To reduce poverty, gain self employment and skilled wage employment, build strong grassroots level institutions.
The mission would aim at providing shelter equipped with essential services to the urban homeless.
It would also address issues of urban street vendors by access to suitable spaces, institutional credit, social security etc.
To established strong right based linkages with other programmes and for PDS, ICDS, sanitation, financial inclusion etc.

Prime Minister’s Employment Generation Program (PMEGP)

It is a credit linked subsidy programme by merging 2 schemes namely PM Rozgar Yojana (PMRY) and Rural Employment Generation Program (REGP) for generation of employment opportunities through establising of micro enterprises in both rural and urban areas.
It is a Central Sector Scheme administered by MoMSME.
Implementation
1. At National level: by Khadi and Village Industries Commission (KVIC).
2. At State Level: by State KVIC Directorates, State Khadi and Village Ind ustries Boards (KVIBs) and District Industries Centres (DICs) and banks.
Objectives
1. Generate continuous and sustainable employment opportunities in Rural and Urban areas especially to artisans through setting up micro enterprises.
2. To facilitate participation of financial institutions for higher credit flow to micro sector.
Eligibility: > 18 years, 8th pass (for > 10 lakhs in manufacturing and > 5 lakhs for Service sector), SHG and Charitable trusts, Production based cooperatives societies.
Salient Features: It is implemented through KVIC and State/ UT KVIB in rural areas and through District Industries Centers (DIC) in Urban and Rural areas in ratio 30:30:40 between KVIC/ KVIB/ DIC.

Pradhan Mantri Mudra Yojana (PMMY) is being implemented by the Government inter alia, for facilitating self-employment. Under PMMY collateral free loans upto Rs. 10 lakh, are extended to micro/small business enterprises and to individuals to enable them to setup or expand their business activities.

Micro-Units Development Refinance Agency (MUDRA) Bank

It is a refinance institution for Microfinance institutions. MUDRA Bank will refinance MFIs through a PM Mudra Yojana.
It is not just a refinance institution but also a regulator for MFIs.
MUDRA Bank is being operationalised as a subsidiary of SIDBI known as MUDRA (SIDBI) Bank.
It registers, regulates, accreditates MFIs entities and lays down guidelines for micro/small enterprise financing business.
Budget 2015-16 proposed to create MUDRA with a corpus of Rs. 20000 crore made available from the shortfalls of PSL.
In addition there is a Credit Guarantee Corpus of Rs. 3000 crore for guaranteeing loans to Micro enterprises.
MUDRA Bank operates through regional level financing institutions who in turn connect with MFIs, Small Banks, SHGs, NBFC (other than MFI) and Primary Credit Cooperative Societies.
In lending MUDRA gives priority yo enterprises set up by under privilege sections of society especially SC/ ST, 1st generation entrepreneurs sna existing small business.

PM Mudra Yojana, 2015

Launched in 2015 for providing loans upto 10 lakhs to non corporate, non farm small/ micro enterprises.
To “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them.
Under PMMY, all banks viz. Public Sector Banks, Private sector Banks, RRBs, State Cooperative Banks, Urban Cooperative Banks, Foreign Banks and NBFCs/MFIs.
Loans offered are Shishu (upto 50000); Kishor (50000 to 5 lakhs) and Tarun (5 lakhs to 10 lakhs). There is no subsidy for this loan.
Sectors like Land Transport, Community, Social and Personal service activities; Food products; Textile products are included.

Earlier Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was launched to incentivise employers for creation of new employment. Under the scheme, Government of India is paying Employer’s contribution i.e. 12% for a period of three years to the new employees earning upto Rs. 15,000/- through EPFO. The terminal date for registration of beneficiary through establishment was 31st March 2019. The beneficiaries registered upto 31st March, 2019 will continue to receive the benefit for 3 years from the date of registration under the scheme i.e. upto 31st March, 2022.

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

PMRPY Scheme aims to incentivise employers registered with EPFO for job creation by the Govt paying the full 12% employers' contribution to EPF & EPS both w.e.f 01.04.2018 (earlier benefit was applicable for employer's contribution towards EPS only i.e 8.33%) for the new employees having UAN (Universal Account Number), for 1st 3 years of employment.
It is implemented by Ministry of Labour & Employment and is operational since 2016.
Eligibility

Establishments should have a Labour Identification Network (LIN) allotted to them under Shram Suvidha Portal.
PMRPY is for new employees earning wage < 15000 per month.

Duration: The scheme was in operation for 3 years i.e. till 2019-20.

Besides these initiatives, flagship programmes of the Government such as Make in India , Digital India , Swachh Bharat Mission , Smart City Mission, AMRUT or Atal Mission for Rejuvenation and Urban Transformation , Housing for All , Infrastructure development and Industrial corridors have the potential to generate productive employment opportunities.

For detailed analysis and explanation by Ankit Sir: click here

Source: PIB

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