Lok Sabha Question No. 1276 (UNSTARRED), answered on 2020-09-19
Subject: Job Loss in Manufacturing/Construction Sector
Ministry: LABOUR AND EMPLOYMENT
Asked by: Jasbir Singh Gill

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK  SABHA

## UNSTARRED QUESTION NO. 1276

TO BE ANSWERED ON 19 TH  SEPTEMBER, 2020

## JOB LOSS IN MANUFACTURING/ CONSTRUCTION SECTOR

1276.  SHRI JASBIR SINGH GILL:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a) the  number  of  jobs  lost  in  the  manufacturing  sector  and  construction  sector between  January  2020  and  August  2020,  state-wise,  gender-wise,  and  monthwise;
- (b) whether  the  Government  is  taking  steps  to  increase  employment  in  these sectors; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

(a) to (c) : The global spread of the corona virus (COVID-19) followed by lockdowns has affected  economies across the globe including India. Covid-19 has resulted in large number of migrant workers going back to their native places. Government is taking  several  steps  to  ensure  that  the  country  is  well  prepared  to  face  the challenges  and  threats  posed  by  Covid-19.  Aatmanirbhar  Bharat  which  focuses  on Economy, Infrastructure, System, Vibrant Demography and Demand to create jobs for the youth has also been launched.

To provide relief to the business, additional working capital finance of 20% of the  outstanding  credit  as  on  29th  February  2020,  in  the  form  of  a  Term  Loan  at  a concessional rate of interest is being provided. The units will not have to provide any guarantee or collateral of their own.

Under Pradhan Mantri Garib Kalyan Yojana (PMGKY), Government of India is contributing both 12% employer's share and 12% employee's share under Employee's Provident Fund (EPF), totalling 24% of the wage for the wage month from  March to August, 2020 for all the establishments having upto 100 employee's with 90% of such employee's earning less than Rs. 15000/-.

Statutory PF contribution of both employer and employee has been reduced to 10% each from existing 12% each for all establishments covered by EPFO for three months.

Under  Aatmanirbhar  Bharat  Abhiyaan,  the  Government  has  earmarked  an additional Rs. 40,000 crore under MGNREGS. It will help generate nearly 300 crore person  days  in  total  addressing  need  for  more  work  including  returning  migrant workers in Monsoon season as well.

RBI  and  Government  of  India  have  introduced  following  Measures  to  infuse liquidity  in  the  economy  in  general  &  Manufacturing  &  Construction  sector  in particular.

- i. Moratorium  up  to  31st  August,  2020  on  repayment  of  installments  of  term loans/cash credit/over draft.
- ii. Scheme  of  Rs.  1,500  crore  to  provide  Interest  Subvention  of  2%  for  prompt payees for a period of 12 months to MUDRA Shishu loanees, who have loans below Rs. 50,000.
- iii. Special refinance facility of Rs. 15,000 crore to SIDBI for onlending/refinancing.
- iv. Special liquidity scheme  for  Non-Banking Financial  Companies  (NBFCs), Housing  Finance  Companies  (HFCs)  and  Micro  Financial  Institutions  (MFIs) worth Rs 30,000 crore.
- v. Emergency Credit Guarantee  Line  of  Rs.  3  lakh  crore  for  Standard  accounts and  stressed  accounts  (Special  Mention  Accounts-0  and  Special  Mention Accounts-1)
- vi. Rs.  45,000  crore  Partial  Credit  Guarantee  Scheme  2.0  for  providing  portfolio guarantee of 20% first loss to Public Sector Banks for purchase of Bonds or Commercial Papers with a rating of AA and below
7. vii.
8. Ban on Global Tender for procurement up to Rs. 200 crore.
- viii. Credit  Guarantee  Scheme  for  Subordinate  Debt  for  SMA-2  and  NPA  accounts for infusing Rs. 20,000 crore in MSME Sector
- ix. Credit Guarantee scheme for street Vendors (PM SVAnidhi) which also involves interest subsidy
- x. Partial credit guarantee scheme for the liabilities of NBFCs and MFIs, etc.

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was launched by the Ministry of Labour  and  Employment  for  incentivising  employer's  for  promoting  employment generation. Under this scheme, Government is paying entire employer's contribution (12% or as admissible) towards EPF and EPS for all eligible employee's registered upto 31st March, 2019 through Employer's for all sectors for 3 years.

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