New schemes under Atmanirbhar package to provide financial and social aid to generate employment opportunities

Minister of State for Labour and Employment announced the provision of collateral-free loans upto US$ 1 million under the PMMY and a fiscal stimulus of US$ 3.72 million under the Atmanirbhar package.

March 12, 2021

Fiscal stimulus of US$ 3.72mn is to be provided by the centre as part of the Atmanirbhar financial package.

PMMY to provide collateral-free loans upto US$ 1mn to small enterprises and individuals.

PMRPY will undertake 12 percent towards the EPF and EPS to the new employees for three years through EPFO.

ABRY to incentivise employers for the creation of employment opportunities by providing them with social security benefits.

A fiscal stimulus of US$ 3.72mn is to be provided by the centre as part of the Atmanirbhar financial package, announced Shri Santosh Kumar Gangwar , the Minister of State for Labour and Employment. The announcement was communicated via a written reply to a question in the Rajya Sabha on 12th March by the minister, who also mentioned that public expenditure on various schemes run by the Ministry of Micro, Small and Medium Enterprises, Ministry of Rural Development and Ministry of Housing and Urban Affairs was being increased.

 A scheme called Pradhan Mantri Mudra Yojana (PMMY) has been initiated to promote self-employment, where collateral-free loans upto US$ 1mn will be provided to micro//small enterprises and individuals to aid the setting up and expansion of their business activities. Furthermore, the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is furthering the facilitation of new employment by means of undertaking the employer’s total contribution viz. 12 percent towards the EPF and EPS to the new employees for three years through the Employees’ Provident Fund Organisation (EPFO). In addition to the aforementioned, the Atmanirbhar Bharat Rozgar Yojna (ABRY) scheme has been initiated to restore the loss of employment during the COVID-19 pandemic, where employers will be incentivised for the creation of employment opportunities by providing them with social security benefits. Under this scheme, both the employees’ share (12 per cent of wages) and employers’ share (12 per cent of wages) of contribution payable or only the employees’ share, based on the employment strength of the EPFO will be borne by the Government of India for two years.

Apart from these, several initiatives by the Government such as Make in India, Digital India, Swachh Bharat Mission, Smart City Mission, Atal Mission for Rejuvenation and Urban Transformation, Housing for All, Infrastructure development and Industrial corridors are also working towards generating more employment opportunities.

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