Govt Will Give Incentives For Hiring Employees; Rs 3 Trillion Emergency Loan For 26 Sectors Announced
In order to push the revival of India’s economy, and to trigger new growth, Govt of India has announced the roll out of Atmanirbhar Bharat 3.0.
This includes a massive economic stimulus of Rs 3 trillion for 26 stressed sectors, along with incentives for employers, if they hire more employees.
Both of these, along with other policies and measures are unprecedented in India’s history, and we are pretty bullish on them.
Here are the details..
Atmanirbhar Bharat 3.0: Incentives For Employers To Hire Employees
Under the Atmanirbhar Bharat 3.0 plan, Govt will provide incentives for hiring those employees, who are out of job since March due to the lockdown.
Some highlights of this program:
- This program is called Atmanirbhar Bharat Rozgar Yojana, wherein employers will get incentives for hiring employees.
- Eligible employers for receiving this incentive must be registered with EPFO.
- The scheme is valid only for those employees, who have a salary of less than Rs 15,000 per month, and had to quit their jobs due to coronavirus pandemic.
- If any EPFO registered employer hire such employees with salary of less than Rs 15,000, then 12% contribution towards PF will be borne by the Govt, for both employees and employers. Hence, 24% of the salary will be provided by the Govt.
- The new employment should start after October 1st
- Only those companies, firms and businesses with less than 1000 employees are eligible to the incentives.
- Hence, Atmanirbhar Bharat Rozgar Yojana is expected to cover 95% of all companies under the organized sector.
Rs 3 Trillion Of Emergency Credit Line Guarantee Scheme (ECLGS)
Finance Minister Nirmala Sitharaman also announced the extension of the Emergency Credit Line Guarantee Scheme (ECLGS), till March 2021.
Rs 3 trillion of funding has been approved, under this emergency credit line scheme, which will cover 26 stressed sectors.
All MSMEs, manufacturing firms, services and other businesses are eligible for availing emergency credit under this scheme.
Earlier, Govt had announced a special financial package for 10 sectors.
We will keep you updated, as more details come in.