Which of the following statements relating to the recent steps taken by the Government of India under the 'Employment Linked Incentive (ELI) Scheme' is/are correct?
1. ELI Scheme has an outlay of about 1 lakh crore.
2. Establishments registered with the EPFO are required to hire at least two additional employees (with fewer than 50 employees) or five additional employees (with 50 or more employees), on a sustained basis for at least six months, to avail benefits under the ELI Scheme.
Select the answer using the codes given below:

Correct option is C

The correct answer is: (c) Both 1 and 2

Explanation

1. Statement 1 is correct: The ELI Scheme has a specific budget outlay of approximately ₹1.07 lakh crore (often rounded to ₹1 lakh crore in general contexts) out of the broader ₹2 lakh crore "Prime Minister’s Package for Employment and Skilling."
2. Statement 2 is correct: To prevent companies from merely replacing existing workers to get subsidies, the scheme mandates a "net increase" in the workforce.
• Small Establishments (<50 employees): Must hire at least two additional employees.
• Large Establishments (≥50 employees): Must hire at least five additional employees.
• Sustenance: These new employees must be retained for at least six months to qualify for the employer's portion of the incentive.

Information Booster

The ELI Scheme is divided into three primary sub-schemes (often referred to as Part A, B, and C) to target different segments of the economy:

• Scheme A (First-Timers): Provides a one-month wage (up to ₹15,000) in two installments to first-time employees earning up to ₹1 lakh per month.
• Scheme B (Manufacturing): Focuses on substantial hiring in the manufacturing sector. It provides incentives for both employer and employee contributions for the first four years of employment.
• Scheme C (Employer Support): Reimburses employers up to ₹3,000 per month for two years for each additional employee hired across all sectors.