Context: The GoM, headed by the Social Justice and Empowerment Minister, submitted draft proposals on employment and skill development. 

Draft Proposals:

  • The draft proposes that the land pooling model which is used in building greenfield airports can be used in agriculture to enable corporatisation, which will create demand for skilled labourers.
  • It suggests merging the Mahatma Gandhi National Rural Guarantee Act (MNREGA) with skill development programmes to create a wage subsidy programme.
    • Under this the MNREGA amount will be extended to companies as wage subsidy for Small and Medium-sized Enterprises (SME). 
    • It also suggests that works in private enterprises such as factories, construction sites and shops can be considered as eligible work under MNREGA. 
    • This will lower the cost of wages and make industries competitive, creating a local employment wave, the draft says.
  • To help SMEs, it suggests that the RBI can cut reverse repo rate to 0 per cent for a few months, thus incentivising banks to lend more. 
    • Banks can also use GST credits as collateral and lend against them, it suggests. 
    • It also proposes establishment of a venture capital fund for SMEs.
  • Apart from a National Employment Policy (NEP), a National Electronic Employment Exchange is proposed to help every worker who has migrated or is proposing to migrate. 
    • All such workers should register their skill and enterprises should register their requirement for workers. 
    • While a large part of the workforce is unskilled, the panel is understood to have proposed the framing of a standard operating procedure for migrant workers.
    • It also proposes a Migrant Worker Welfare Fund with equal contributions from the worker, employer and government. 
      • This fund could be utilised to address the requirements of accommodation, health insurance and unemployment allowance in case of shifting of jobs.
    • It suggests development of Rental Housing Facilities at government as well as private level in order to provide rental accommodation to migrant workers. 
  • It talks of opening up EPF (Employees Provident Fund) and ESIC (Employees State Insurance Corporation) for the unorganised sector by registering workers on agreeing to make contributions. 
  • Every migrant worker should be automatically enrolled in PMJAY (PM Jan Arogya Yojana) and have access to cashless medical facilities in the place of work.
    • There is also a suggestion to create a new Department of Hygiene to ensure hygienic practices, which should be made mandatory in all organisations, government or private, and public places. 
    • It has proposed a Social Distancing Protocol, which shall be embedded in the functioning of enterprises.
  • The food processing should be given “cottage industry” status.
  • It suggested to leverage the potential of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) for creating  a balance between farm and non-farm activities. 


  • The proposals are drafted with the right spirit and motive to augur the employment potential of the most vulnerable sections.
  • However, timely and robust implementation of the same would determine the quantum of change they are able to create w.r.t the skill and employment potential of the country .

Mahatma Gandhi National Rural Employment Guarantee Act:

  • It is an Indian labour law and social security measure that aims to guarantee the 'right to work'. 
  • This act was passed in September 2005.
  • It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

Pradhan Mantri Jan Arogya Yojana:

  • The second component under Ayushman Bharat is the Pradhan Mantri Jan Arogya Yojna or PM-JAY as it is popularly known. 
  • This scheme was launched on 23rd September, 2018.
  • It is the largest health assurance scheme in the world which aims at providing a health cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization to over 10.74 crores poor and vulnerable families (approximately 50 crore beneficiaries) that form the bottom 40% of the Indian population

Pradhan Mantri Kaushal Vikas Yojana:

  • This is the flagship scheme for skill training of youth to be implemented by the new Ministry of Skill Development and Entrepreneurship through the National Skill Development Corporation (NSDC). 
  • The scheme will cover 10 million youth during the period 2016 -2020.
  • Under this Scheme, Training and Assessment fees are completely paid by the Government.
  • Skill training would be done based on the National Skill Qualification Framework (NSQF) and industry led standards.



  • Repo Rate: It is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. 
    • It is used by monetary authorities to control inflation.
  • Venture capital funds: These are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential. 
    • These investments are generally characterized as high-risk/high-return opportunities.
  • Land Pooling: It is a concept where small chunks of land are owned by a group of owners who assemble for the development of infrastructure.
    • After the development of the land, the Land Pooling agency redistributes the land after deducting some portion as compensation towards infrastructure costs.



Image Source: Indian Express