Centre launches Rs 99.446 crore ELI scheme to create 3.5 cr jobs in 2 years

The central government on Tuesday announced the Rs 99,446 crore (almost Rs 1 lakh crore) Employment Linked Incentive (ELI) scheme, amid opposition allegations on unemployment by choosing to focus on job generation and youth empowerment through this big-ticket commitment.

- SIMONTINI BHATTACHARJEE

Prime Minister Narendra Modi-led Union Cabinet approved various ambitious schemes and projects intended to structure India's economic and social profile in the years to come. The ELI scheme is intended to create new employment opportunities in the formal sector with the assurance that these jobs will be sustainable in the long run. Those aware of the plan explained that the scheme would encourage formalisation of India's labour force, increase social security, and help advance the goals of the National Manufacturing Mission. ELI will work through two components. Through Part A, fresh hires with up to Rs 1 lakh monthly salary will be given wage support of one month's wage, with a limit of Rs 15,000. The subsidy will be released in two tranches -one after six months and the other after 12 months of continuous employment. The scheme, which is universal in its applicability to all sectors, will be operational between August 1, 2025, and July 31, 2027. The scheme will encourage the generation of over 3.5 crore employment opportunities during a period of two years, an official release stated.

Part B of the scheme is aimed at encouraging employers to take on more workers over some base level.

Workers employed in all industries who take on the minimum number of staff required at least two more workers in firms with fewer than 50 employees and at least five in larger firms - will get up to Rs 3,000 per worker per month for two years. In the case of industry, particularly manufacturing, this benefit will be available even for the third and fourth years, showing the government's priority for promoting local industry.

The ELI scheme was introduced in the Union Budget 2024-25 as one of the packages of five schemes to enable employment, skilling and other opportunities to 4.1 crore youth with a total budget outlay of Rs 2 lakh crore.