17-Aug-2022: Cabinet approves enhancement in the corpus of Emergency Credit Line Guarantee Scheme for increasing the limit of admissible guarantees

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved the enhancement in the limit of Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore from Rs. 4.5 Lakh crore to Rs. 5 Lakh crore, with the additional amount being earmarked exclusively for enterprises in hospitality and related sectors.  The increase has been done on account of the severe disruptions caused by COVID-19 pandemic on hospitality and related enterprises.

Implementation schedule: ECLGS is a continuing scheme.  The additional amount of Rs. 50,000 crore would be made applicable to enterprises in hospitality and related sectors till validity of the scheme which is 31.3.2023.

Impact: ECLGS is an already operational scheme and on account of the disruptions caused by the COVID 19 pandemic on hospitality and related sectors, Government has specifically earmarked an amount of Rs. 50,000 crore for enterprises in these sectors.  The enhancement is expected to provide much needed relief to enterprises in these sectors by incentivizing lending institutions to provide additional credit of up to Rs. 50,000 crore at low cost, thereby enabling these business enterprises to meet their operational liabilities and continue their businesses.

Loans of about Rs. 3.67 Lakh crore have been sanctioned under ECLGS till 5.8.2022.

Background:

The ongoing pandemic has adversely impacted contact-intensive sectors, especially the hospitality and related sectors more severely.  While other sectors were back faster on the path of recovery, demand continued to be subdued for these sectors for longer period, suggesting the need for suitable interventions for their sustenance and recovery.  Further, given their high employment intensity and their direct and indirect linkages with other sectors, their revival is also necessary for supporting overall economic recovery.  Recognising this, in Union Budget 2022-23, it was announced to extend validity of ECLGS upto March, 2023 and increase in the limit of guaranteed cover of ECLGS by Rs. 50,000 crore to total cover of Rs. 5 Lakh core, with the additional amount being earmarked exclusively for the enterprises in hospitality and related sectors.

With high immunization levels, progressive roll-back of restrictions and overall economic recovery, conditions are in place for sustained growth in demand for these sectors as well.  This additional guarantee cover is expected to support the recovery of these sectors as well.  This additional guarantee cover is expected to support the recovery of these sectors.

30-Mar-2022: Scope of Emergency Credit Line Guarantee Scheme (ECLGS) enhanced and validity extended till 31.3.2023

Giving effect to Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman’s announcement in Union Budget 2022-23, the National Credit Guarantee Trustee Company Limited (NCGTC) today extended the Emergency Credit Line Guarantee Scheme (ECLGS) beyond March 2022, till March 2023.

Further, following up on the suggestions received in the post Budget consultations held by the Finance Minister on 25th February 2022 with the Travel, Tourism and Hospitality sector and the Civil Aviation sector delegation led by the Minister of Civil Aviation, NCGTC also issued modifications to the operational guidelines for ECLGS 3.0.

Keeping this in view, the coverage, scope and extent of benefits under ECLGS 3.0 pertaining to hospitality, travel, tourism and civil aviation sectors has been expanded as follows:

1. New borrowers in the sectors covered under ECLGS 3.0 who have borrowed after 31.3.2021 and up to 31.1.2022 will also now be eligible to avail of emergency credit facilities under ECLGS 3.0.
2. The extent of emergency credit facilities that may be availed of under ECLGS 3.0 has been increased for eligible borrowers in all sectors covered under ECLGS 3.0. Eligible borrowers in all such sectors (other than the civil aviation sector) are now permitted to avail up to 50% of their highest fund based credit outstanding on any of three reference dates (29.2.2020, 31.3.2021 and 31.1.2022), as against the earlier limit of 40% of the higher of their fund-based outstanding on either of two reference dates (29.2.2020 and 31.3.2021). This is subject to the existing maximum of ₹200 crore per borrower.
3. Keeping in view the high proportion of non-fund based credit in the overall credit of the civil aviation sector, eligible borrowers in the civil aviation sector are now permitted to avail of non-fund based emergency credit facilities as well under ECLGS 3.0. As against the earlier limit of availing up to 40% of the higher of their fund-based outstanding as on either of two reference dates, subject to a maximum of ₹200 crore per borrower, they can now avail of up to 50% of their highest total fund and non-fund based credit outstanding on any of the three reference dates referred to above, subject to a maximum of Rs. 400 crore per borrower. Further, to lower their cost of accessing non-fund-based credit, bank guarantees, letters of credit and other non-fund based facilities sanctioned under ECLGS 3.0 will be issued without any cash margin and subject to a cap of 0.5% per annum on the fee/commission.
4. Individuals and proprietary concerns in the sectors covered under ECLGS 3.0 can also now avail of emergency credit facilities.
5. In order to remove any doubt regarding eligibility on this account, the sectors covered under ECLGS 3.0 have been clarified by enumerating businesses covered under them.

The modifications introduced are aimed at enabling businesses in these contact-intensive sectors to get further support through enhanced coverage and collateral-free liquidity on capped interest rates / fees.

As on 25.3.2022, loans sanctioned under ECLGS have crossed ₹ 3.19 lakh crore, and about 95% of the guarantees issued are for loans sanctioned to Micro, Small and Medium Enterprises.

22-Mar-2022: More than 95% MSMEs benefitted under ECLGS

As informed by the National Credit Guarantee Trustee Company Limited, the agency which operates the Emergency Credit Line Guarantee Scheme (ECLGS), as on 11.3.2022, a total of 117.87 lakh businesses have been supported with 100% guaranteed collateral free loans under ECLGS of which about 95.21% were MSMEs. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha today.

The Minister stated that the ECLGS was launched in May 2020 as part of the Aatmanirbhar Bharat Abhiyaan to support eligible Micro, Small and Medium Enterprises (MSMEs) and other eligible business enterprises in meeting their operational liabilities and restarting their businesses in the context of the disruption caused by the COVID-19 pandemic. It covered all the sectors of the economy. 100% guarantee is provided to Member Lending Institutions (MLIs) in respect of the credit facility extended by them under the scheme to eligible borrowers, the Minister added.

The Minister also stated that pursuant to an announcement made by the Finance Minister in her speech on the Union Budget 2022-23 that ECLGS will be extended till March 2023, Government has extended the scheme by one year, till 31.3.2023.

Giving more details, the Minister stated that the structure of scheme allows easy access to credit as the lenders offer pre- approved loans based on borrower’s existing credit outstanding and there is no fresh appraisal undertaken by lenders since additional credit is sanctioned over and above the credit facilities already assessed. Further, the interest rate is also capped with a view to lower the cost of credit and loans are sanctioned without any processing charges, pre- payment charges and guarantee fee.

On a question on RBI’s views on the MSME sector, the Minister stated that RBI has observed in its Financial Stability Report, December 2021 that MSMEs are reflecting signs of stress. In this connection, RBI has informed that the MSME portfolios of Commercial banks indicate accumulation in the non-performing asset and special mention account – 2 categories in September 2021, relative to March 2021.

5-Aug-2021: Emergency Credit Line Guarantee Scheme

Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the Atma Nirbhar Bharat Package in 2020 with the objective to help businesses including MSMEs to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis, by providing Member Lending Institutions (MLIs), 100 percent guarantee against any losses suffered by them due to non-repayment of the ECLGS funding by borrowers.  The eligibility criteria for availing credit under ECLGS are:

• For ECLGS 1.0; MSME units, Business Enterprises, Mudra Borrower and individual loans for business purpose having loan outstanding upto Rs.50 crore and days past due upto 60 days as on 29.02.2020.
• For ECLGS 2.0; Borrower belonging to 26 stressed sectors identified by Kamath Committee & Healthcare sector having loan outstanding above Rs.50 crore and upto Rs.500 crore and days past due upto 60 days as on 29.02.2020.
• For ECLGS 3.0; Borrower belonging to Hospitality, Travel & Tourism, Leisure & Sporting and Civil Aviation sector having days past due upto 60 days as on 29.02.2020.
• For ECLGS 4.0; Existing Hospitals/Nursing Homes/Clinics/Medical Colleges/units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having credit facility with a lending institution with days past due upto 90 days as on March 31, 2021.

The overall ceiling initially announced for ECLGS was Rs 3 lakh crore which was subsequently enhanced to Rs 4.5 lakh crore. However, ECLGS being a demand driven scheme, sanctions/disbursements are made by lending institutions based on assessment of borrower’s requirement and their eligibility.

ECLGS is under the operational domain of Ministry of Finance, Department of Financial Services (DFS). As informed by DFS, as on 2.07.2021 an amount of Rs.2.73 lakh crore have been sanctioned under the scheme of which an amount of Rs.2.14 lakh crore has been disbursed. Total 1.14 crore borrowers have been issued guarantee under the scheme.

In order to ensure easy and softer repayment terms on the credit extended to the MSME sector, Government has capped the interest rate under ECLGS scheme at 9.25 percent for Banks and Financial Institutions and 14 percent for Non-Banking Financial Institutions. This scheme also offers a one year moratorium on payment of principle component.  In addition to this, the other scheme announced under Atma Nirbhar Bharat package i.e. ‘Credit Guarantee Scheme for Subordinate Debt’ also has moratorium clause of 7 years on the payment of principle component with the overall all repayment period of 10 years.  Ministry MSME is implementing various schemes and programmes to provide access to technology upgradation. These schemes include Technology Upgradation Component of Credit Linked Capital Subsidy Scheme and Technology Upgradation Scheme (CLCS-TUS), Micro and Small Enterprise – Cluster Development Programme (MSE-CDP), MSME Technology Centres (MSME-TCs), Technology Centre Systems Programme (TCSP) etc. These schemes are implemented across the country including the state of Maharashtra.

30-Jun-2021: Cabinet approves Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS) and to enhance the corpus of Emergency Credit Line Guarantee Scheme (ECLGS)

On account of the disruptions caused by the second wave of COVID 19 specially on healthcare sector, the Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS) enabling funding to the tune of Rs. 50,000 crore to provide financial guarantee cover for brownfield expansion and greenfield projects related to health/ medical infrastructure.

The Cabinet has also approved introduction of a scheme for other sectors/lenders including those allied to better healthcare. Detailed modalities would be finalized in due course depending upon the evolving situation.

In addition, the Cabinet has also approved additional funding up to Rs. 1,50,000 crore under Emergency Credit Line Guarantee Scheme (ECLGS).

Targets:

LGSCAS: The Scheme would be applicable to all eligible loans sanctioned up to 31.03.2022, or till an amount of Rs. 50,000 crore is sanctioned, whichever is earlier.

ECLGS: It is a continuing scheme. The Scheme would be applicable to all eligible loans sanctioned under Guaranteed Emergency Credit Line (GECL)till 30.09.2021, or till an amount of rupees four lakh fifty thousand crore is sanctioned under the GECL, whichever is earlier.

Impact:

LGSCAS: The LGSCAS has been formulated as a specific response to an exceptional situation the country has witnessed due to lack of adequate health infrastructure in the light of second wave of Covid-19. The approved scheme is expected to help the country in shoring up its much-needed healthcare infrastructure along with creating more employment opportunities. The main objective of LGSCAS is to partially mitigate credit risk (primarily construction risk) and facilitate bank credit at lower rates of interest.

ECLGS: It is a continuing scheme and recently, on account of the disruptions caused by the second wave of COVID 19 pandemic to businesses across various sectors of the economy, Government has further enlarged the scope of ECLGS. The enhancement is expected to provide much needed relief to various sectors of the economy by incentivizing lending institutions to provide additional credit of up to Rs. 1.5 lakh crore at low cost, thereby enabling business enterprises to meet their operational liabilities and continue their businesses. Besides supporting MSMEs to continue functioning during the current unprecedented situation, the Scheme is also expected to have a positive impact on the economy and support its revival.

Background:

LGSCAS: Government has taken various measures to combat the crisis caused due to Covid-19 pandemic which has been upended by the second wave of COVID-19. This wave has placed enormous stress on health facilities as well as livelihoods and business enterprises in many sectors. This wave has sharply brought out the need to enhance public and private investments in the health sector. This is necessary across the country, from metro cities to tier V and VI towns as well as rural areas. The requirements include additional hospital beds, ICUs, diagnostic centres, oxygen facilities, telephone or internet based medical advice and supervision, testing facilities and supplies, cold chain facilities for vaccines, modem warehousing for medicines and vaccines, isolation facilities for triage, ramping up of production of ancillary supplies such as syringes and vials etc. The proposed LGSCAS is aimed at upscaling the medical infrastructure in the country, specifically targeting underserved areas. LGSCAS would provide a guarantee of 50 percent for brownfield projects and 75 per cent to greenfield projects for loans sanctioned up to Rs.100 crore, set up at urban or rural locations other than 8 Metropolitan Tier 1 cities (Class X cities). For aspirational districts, the guarantee cover for both brownfield expansion and greenfield projects shall be 75%.

ECLGS: The resurgence of COVID-19 pandemic in India in recent weeks and the associated containment measures adopted at local/regional levels have created new uncertainties and impacted the nascent economic revival that was taking shape. In this environment the most vulnerable category of borrowers are individual borrowers, small businesses and MSMEs, for which, ECLGS, as a targeted policy response was introduced by Gol. The design of ECGLS provides flexibility to quickly respond to emerging needs, as has been evidenced by the introduction of ECLGS 2.0, 3.0 and 4.0 as well as changes announced on 30.05.2021, all of which were within available headroom of Rs 3 lakh crore. Currently, about Rs. 2.6 lakh crore of loans have been sanctioned under ECLGS. A further uptick is expected due to changes announced recently, extension of limit of one time restructuring to Rs. 50 crore by RBI on 04.06.2021 and the continuing adverse impact of COVID on businesses.

30-May-2021: Emergency Credit Line Guarantee Scheme (ECLGS) expanded - ECLGS 4.0 for onsite oxygen generation, wider coverage of ECLGS 3.0 and increase in tenor for ECLGS 1.0

On account of the disruptions caused by the second wave of COVID 19 pandemic to businesses across various sectors of the economy, Government has further enlarged the scope of Emergency Credit Line Guarantee Scheme as under:

1. ECLGS 4.0:100% guarantee cover to loans up to Rs.2 crore to hospitals/nursing homes/clinics/medical colleges for setting up on-site oxygen generation plants, interest rate capped at 7.5%;
2. Borrowers who are eligible for restructuring as per RBI guidelines of May 05, 2021 and had availed loans under ECLGS 1.0 of overall tenure of four years comprising of  repayment of interest only during the first 12 months with repayment of principal and interest in 36 months thereafter will now be able to avail a tenure of five years for their ECLGS loan i.e. repayment of interest only for the first 24 months with repayment of principal and interest in 36 months thereafter;
3. Additional ECLGS assistance of upto 10% of the outstanding as on February 29, 2020 to borrowers covered under ECLGS 1.0, in tandem with restructuring as per RBI guidelines of May 05, 2021;
4. Current ceiling of Rs. 500 Cr. of loan outstanding for eligibility under ECLGS 3.0 to be removed, subject to maximum additional ECLGS assistance to each borrower being limited to 40% or Rs.200 crore, whichever is lower;
5. Civil Aviation sector to be eligible under ECLGS 3.0
6. Validity of ECLGS extended to 30.09.2021 or till guarantees for an amount of Rs.3 lakh crore are issued. Disbursement under the scheme permitted upto31.12.2021.

The modifications in ECLGS, would enhance the utility and impact of ECLGS by providing additional support to MSMEs, safeguarding livelihoods and helping in seamless resumption of business activity. These changes will further facilitate flow of institutional credit at reasonable terms.

Detailed operational guidelines in this regard are being separately issued by the National Credit Guarantee Trustee Company (NCGTC).

8-Aug-2022: Atal Bimit Vyakti Kalyan Yojana

Atal Beemit Vyakti Kalyan Yojana (ABVKY) is a welfare measure for the employees covered under the Employees’ State Insurance (ESI) Act, 1948 in the form of cash compensation up to 90 days once in lifetime of the worker in the contingency of Insured Persons’ (IPs’) unemployment.

The scheme came into force on 01.07.2018 and extended twice from 01.07.2020 to 30.06.2021 and from 01.07.2021 to 30.06.2022 in order to provide relief to those IPs who became unemployed during the Covid-19 pandemic.  The eligibility and other conditions of the scheme were relaxed w.e.f. 24.03.2020 as under:-

• The rate of relief under the scheme was enhanced from 25% of the average daily earnings to 50% of average daily earnings of the claimant.
• The IP should have been in insurable employment for a minimum 2 years and should have contributed for not less than 78 days in the contribution period immediately preceding the unemployment and minimum 78 days in one of the remaining three contribution periods in two years prior to unemployment. Earlier, minimum contribution of 78 days in each of four contribution periods was required.
• The waiting period to file the claim was reduced from 90 days to 30 days.
• Mandatory filing through employer and submission of affidavit by the claimant was dispensed with.
• All the Insured Persons covered under ESI Act are entitled under the scheme and no separate registration is required.

24-Mar-2021: Atal Bimit Vyakti Kalyan Yojana

The scheme Atal Beemit Vyakti Kalyan Yojana was introduced by the Employees’ State Insurance Corporation (ESIC) on pilot basis for a period of 2 years w.e.f. 01.07.2018 for providing relief to the Insured Persons (IPs) who have become unemployed. Under this scheme relief in the form of cash compensation to the extent of 25 per cent of the average per day earning was paid upto a maximum of 90 days of unemployment subject to conditions that the employee should have completed two years of Insurable employment and has contributed not less than Seventy-Eight (78) days in each of the four consecutive contribution periods immediately preceding to the claim of the relief.

Since its inception till 18.03.2021, a total of 43299 beneficiaries have availed relief under the scheme and an amount of Rs.57.18 crore has been disbursed.

The scheme has been extended for  the period from 01.07.2020 to 30.06.2021. In order to provide benefit to the IPs who have become unemployed during Covid-19 pandemic, the rate of relief has been enhanced and the eligibility conditions have been relaxed as follows  for the IPs who became unemployed from 24.03.2020 onwards:-

1. The rate of relief has been doubled from 25 per cent to 50 per cent average per day earning of employee.
2. The Insured Person should have been in insurable employment for a minimum period of two years immediately before his/ her unemployment and should have contributed for not less than 78 days in the contribution period immediately preceding the unemployment and minimum 78 days in one of the remaining three contribution periods in two years prior to unemployment. Earlier this condition was a minimum contribution of 78 days in four contribution periods prior to unemployment with minimum two years insurable employment.
3. Claim shall become due 30 days after date of unemployment. Earlier this period was 90 days.
4. The claim of the IP need not be forwarded by the employer. The claim may be submitted by an IP in the prescribed claim form duly completed online or directly to the branch office.

The following measures have been taken by the Ministry for welfare of the unemployed in the country:

1. The Aatmanirbhar Bharat Rozgar Yojana (ABRY) Scheme has been launched by the Government to incentivize creation of new employment along with social security benefits and restoration of loss of employment during Covid-19 pandemic. This scheme, being implemented through the Employees Provident Fund Organisation (EPFO), reduces the financial burden of the employers of various sectors/industries including Micro, Small and Medium Enterprises (MSMEs) and encourages them to hire more workers. Under ABRY, the government is crediting for a period of two years,   both the employees’ share (12% of wages) and employers’ share (12% of wages) of contribution payable or only the employees’ share, depending on employment strength of the EPFO registered establishments.
2. The Ministry is also implementing the National Career Service (NCS) Project as a Mission Mode Project to provide a variety of employment related services in the country like job matching, career counseling, vocational guidance, information on skill development courses, internships, etc. These services are available online on the National Career Service Portal (www.ncs.gov.in) and  accessible by all users including job-seekers, employers, skill providers, career counsellors etc.

3-Feb-2021: Claim process under Atal Bimit Vyakti Kalyan Yojana further liberated

Atal Beemit Vyakti Kalyan Yojana of ESI Corporation provides relief in form of cash compensation to Insured Persons in the contingency of their unemployment. Presently under this Scheme 50% of average earning of the Insured Person is paid for maximum 90 days in case of his unemployment subject to certain contributory conditions.

It was brought to the notice of ESIC that in some cases employers have struck off their employees from the rolls few months after actually terminating them from service. During this period, ESI contribution was also not filed by the employers for these employees in the system. As the relief under Atal Beemit Vyakti Kalyan Yojana is available only in case of unemployment of the Insured  Persons, such. employees though terminated from service became ineligible for relief under this scheme.

The matter was reviewed and ESIC has now decided that in cases where the employer has shown "Zero" contribution in respect of an employee for some months before exiting him from the system, the relief under ABVKY for such period of "Zero" contribution, shall also be allowed. However, only those beneficiaries who have been exited from the rolls of the employer, shall be considered for payment of relief under ABVKY subject to fulfilment of other eligibility conditions.

21-Aug-2020: Relaxation in eligibility criteria and enhancement in the payment of unemployment benefit under Atal Bimit Vyakti Kalyan yojana of ESIC

The ESI Corporation during its 182nd meeting held late yesterday under the Chairmanship of Shri Santosh Kumar Gangwar, Minister of State for Labour and Employment (I/C) has taken some very important decisions towards improvement in its service delivery mechanism and providing relief to workers affected by Covid-19 pandemic. Following important decisions were taken during the meeting:

ESIC is implementing the Atal Bimit Vyakti Kalyan Yojna under which unemployment benefit is paid to the workers covered under ESI Scheme. The ESI Corporation has decided to extend the scheme for one more year upto 30th June 2021. It has been decided to relax the existing conditions and the amount of relief for workers who have lost employment during the Covid-19 pandemic period. The enhanced relief under the relaxed conditions will be payable during the period of 24.03.2020 to 31st December 2020. Thereafter the scheme will be available with original eligibility condition during the period 01.01.2021 to 30.06.2021. Review of these conditions will be done after 31.12.2020 depending upon the need and demand for such relaxed condition.

The eligibility criteria for availing the relief has also been relaxed, as under:

1. The payment of relief has been enhanced to 50% of average of wages from earlier 25% of average wages payable upto maximum 90 days of unemployment.
2. Instead of the relief becoming payable 90 days after unemployment, it shall become due for payment after 30 days.
3. The Insured Person can submit the claim directly to ESIC Branch Office instead of the claim being forwarded by the last employer and the payment shall be made directly in the bank account of IP.
4. The Insured Person should have been insurable employment for a minimum period of 2 years before his/her unemployment and should have contributed for not less than 78 days in the contribution period immediately preceding to unemployment and minimum 78 days in one of the remaining 3 contribution periods in 02 years prior to unemployment.

With a view to strengthen ICU/HDU services in ESIC hospitals amid the Covid-19 pandemic, it has been decided to establish ICU/HDU services upto 10% of total commissioned beds in all ESIC Hospitals.

The members of ESI Corporation in meeting appreciated the actions taken by ESIC towards mitigating the effect of Covid-19 on its stakeholders besides providing its infrastructure for medical care to general public. So far, 23 ESIC hospitals with around 2600 Isolation Beds and approx. 1350 quarantine beds across India are functioning as COVID-19 Dedicated Hospitals to exclusively provide COVID medical services to the general public of the area. In addition to above, around 961 Covid Isolation Beds are available in most of the remaining ESIC Hospitals across the country, making a total of 3597 Covid Isolation Beds in various ESIC Hospitals. Further, a total of 555 ICU/HDU Beds with 213 Ventilators have also been made available in these Hospitals.

ESIC Medical College & Hospitals at Faridabad (Haryana), Sanath Nagar, Hyderabad (Telangana), Gulbarga (Karnataka) and ESIC PGIMSR, Basaidarapur (Delhi) have started ICMR approved in-house Covid-19 lab test service.

Plasma Therapy treatment is being provided at ESIC Medical College Faridabad (Haryana) and Sanath Nagar, Hyderabad (Telangana).

Rapid Covid-18 ANTIGEN TEST has also been started in all major ESIC hospitals of Delhi/NCR regions.

Alternate provisions have been made for providing non-Covid medical services from tie-up hospitals to the Insured Persons and their family members.

Besides above, around 30 other agenda/reporting items pertaining to improvement in services/benefits to Insured Persons & their beneficiaries and other administrative matters were deliberated upon and approved during the meeting.

Around 60 members of the Corporation including employers’ representative, employees’ representatives, professional expert and representatives of State Government participated through video conference. The other dignitaries who participated in the meeting were Shri Heera Lal Samariya, Secretary, Labour & Employment, Shri Ram Kripal Yadav, MP, Smt Dola Sen, MP, Smt. Anuradha Prasad, Director General and Ms. Sibani Swain, AS&FA, Ministry of Labour and Employment.

17-Jul-2019: Atal Bimit Vyakti Kalyan Yojana

The ESI Corporation has launched a scheme named ‘Atal Bimit Vyakti Kalyan Yojana’ (ABVKY) which, in case the Insured Person (IP) is rendered unemployed, provides relief to the extent of 25% of the average per day earning during the previous four contribution periods (total earning during the four contribution period/730) to be paid up to maximum 90 days of unemployment once in lifetime of the IP on submission of claim in form of an Affidavit. The Scheme has been made effective from 01-07-2018. The scheme is implemented on pilot basis for a period of two years initially. The eligibility conditions and other features of the scheme are as under:-

• The Insured Person should have been rendered unemployed during the period the relief is claimed.
• The Insured Person should have been in insurable employment for a minimum period of two years.
• The Insured Person should have contributed not less than 78 days during each of the preceding four contribution periods.
• The contribution in respect of him should have been paid or payable by the employer.
• The contingency of the unemployment should not have been as a result of any punishment for misconduct or superannuation or voluntary retirement.
• Aadhar and Bank Account of the Insured Person should be linked with insured person data base.
• In case the IP is working for more than one employers and is covered under the ESI scheme he will be considered unemployed only in case he is rendered unemployed with all employers.
• As specified in Section 65 of the ESI Act, an IP shall not be entitled to any other cash compensation and the Relief under ABVKY simultaneously for the same period. However, periodical payments of Permanent Disability Benefit (PDB) under ESI Act and Regulations shall continue.
• As specified under Section 61 of the ESI Act, an IP who is in receipt of Relief under ABVKY shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment.
• The IP will be eligible for Medical benefit as provided under the Act for the period he is availing this relief.
• The claim for Relief under ABVKY may be submitted by the claimant any time after rendering unemployed, but not later than one year from the date of unemployment to the appropriate Branch Office in form of affidavit in prescribed Form. No prospective claim i.e. claim for relief under ABVKY for any future period will be allowed.
• The IP will submit his claim online through the ESIC Portal.

The Relief under ABVKY shall be paid/ payable by Branch Office to IPs directly in their bank account only.

19-Sep-2018: Atal Bimit Vyakti Kalyan Yojna Rolled Out

The ESI Corporation during its 175th Meeting held under the Chairmanship of Shri Santosh Kumar Gangwar, Union Minister of State for Labour & Employment(I/C) has taken some very important decisions towards improvements in its services and benefits being provided to Insured Persons and their dependants.

Considering the change in employment pattern and the current scenario of employment in India which has transformed from a long term employment to fixed short term engagement in the form of contract and temping, the ESI Corporation has approved a Scheme named “ATAL BIMIT VYAKTI KALYAN YOJNA” for Insured Persons (IP) covered under the Employees’ State Insurance Act, 1948. This scheme is a relief payable in cash directly to their Bank Account in case of unemployment and while they search for new engagement.  Detailed instructions including eligibility conditions, application format, etc. will be issued separately.

ESI Corporation has approved the proposal for reimbursement of Rs. 10/- per person to the employers to encourage the seeding of Aadhar (UID) in ESIC database of their workers and their family members. It will curtail the multiple registrations of same Insured Persons and thus enable them to avail the benefits requiring longer contributory conditions.

ESI Corporation has approved the proposal for relaxing the eligibility conditions for availing Super Specialty treatment has now been relaxed from earlier insurable employment of 2 years to 06 months with contribution requirement of only 78 days. Besides, the eligibility for availing Super Specialty treatment for dependents of Insured Person has now been relaxed to insurable employment of one year with 156 days of contributions. This relaxation will immensely help the Insured Persons and their beneficiaries to avail Super Specialty treatment free of cost as per revised eligibility. ESI Corporation has approved the proposal for increasing the Funeral Expenses from existing Rs. 10,000/- to Rs. 15,000/- being paid on the death of Insured Person.