Economy

Cabinet clears PF support scheme till March next year

Our Bureau New Delhi | Updated on June 30, 2021

Estimated expenditure of the scheme likely to be ₹22,098 crore

The Cabinet on Wednesday approved extension of date for registering beneficiaries under Aatmanirbhar Bharat Rojgar Yojana (ABRY) for another nine months March 31 next year, an official statement said.

The scheme, being implemented through Employees Provident Fund Organisation (EPFO), is meant to reduce financial burden of the employers of various sectors/industries and encourage them to hire more workers. Under ABRY, establishments registered with EPFO and their new employees drawing monthly wage of less than ₹15,000 are being benefited if the establishment recruits new employees or those who lost their job between March and September 2020.

The Centre would credit both the employees’ and employers share’ (24 per cent of wages) or only the employees’ share (12 per cent of wages), depending on the strength of EPFO registered establishments for a period of two years under ABRY.

Consequent upon this extension, it is expected that 71.8 lakh employments will be generated in the formal sector as against the earlier projection of 58.5 lakh. As on June 18, benefit amounting to ₹ 902 crore has been given to 21.42 lakh beneficiaries through 79,577 establishments under ABRY.

Estimated expenditure of the scheme following the extension is expected to be ₹22,098 crore.

Loan guarantee for health infrastructure

The Cabinet also cleared a loan guarantee scheme for Covid-affected sectors (LGSCAS) enabling funding to the tune of ₹50,000 crore to provide financial guarantee cover for brownfield expansion and greenfield projects related to health and medical infrastructure. The scheme would be applicable to all eligible loans sanctioned up to March 31 next year, or till an amount of ₹50,000 crore is sanctioned, whichever is earlier, a statement said.

In addition, the Cabinet has also approved additional funding up to ₹1,50,000 crore under Emergency Credit Line Guarantee Scheme (ECLGS). Under this scheme which was launched last year, an additional credit of ₹1,50,000 crore will be made available at low cost to enable MSMEs to meet their operational liabilities and continue their businesses.

It also approved signing of memorandum of understanding between Indian Council of Medical Research and its counterparts in Nepal and Myanmar for promoting joint health research activities of mutual interest. Besides, it approved an MoU with Gambia to help understand personnel administration of both the countries and enable in improving the system of governance through replicating, adapting and innovating some of the best practices and processes.

Published on June 30, 2021

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