Boost for New Employees, Cabinet Fixes Subsidy for P&K Fertilisers
To create more formal sector jobs and lift employment generation, the cabinet committee on economic affairs (CCEA) has decided to meet the full provident fund contribution employer makes for the first three years for new hires.
The CCEA also fixed the nutrient based subsidy (NBS) rates for phosphatic and potassic (P&K) fertiliser’s for the year 2018-19 and continuation of NBS and city compost scheme till 2019-20 and approved removal of prohibition on export of all varieties of edible oils except mustard oil.
The cabinet approved Rs 4,500 crore spend in the North-East for three years up to March, 2020, and cleared amendments to the National Medical Commission (NMC) Bill. The amendments include stringent punishment for quackery, removal of a bridge course that would have allowed non-allopathic doctors to practice modern medicine and regulation of fees for 50% seats at deemed universities.
The CCEA approved modification to the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), enhancing the benefit for employers hiring new hands. The current scheme in operation since August, 2016 pays 8.33% contribution of Employers to the Employees’ Pension Scheme (EPS) in respect of new employees that have joined on April 1, 2016.
The government will now meet the entire 12% contribution employer makes towards retirement savings for the first three years from the date of registration of the new employee for all the sectors including existing beneficiaries for their remaining period of three years.
The expected expenditure for release of subsidy on P&K Fertilisers during 2018-19 will be Rs 23,007 crore. Continuing the NBS and city compost scheme till 2019-20 will entail an expenditure of Rs 61,972 crore.
The CCEA also extended the Credit Guarantee Fund for Education Loans Scheme and continuation and modification of Central Sector Interest Subsidy Scheme. The total outlay for the scheme is Rs 6,600 crore for period from 2017-18 to 2019-20 that will benefit 10 lakh students during this period. The ceiling on loans has been fixed at Rs 7.5 lakh in this period and the moratorium would be course plus one year.
EDIBLE OIL EXPORTS
CCEA allowed bulk exports of all edible oils except mustard. Mustard oil will continue to be exported only in consumer packs up to 5 kgs and with a minimum export price of Rs 900 per tonne. Allowing export of edible oils may also result in utilisation of idle capacity in India’s edible oils industry.
The Economic Times, New Delhi, 29th March 2018