Cabinet extends EPF sop, approves affordable rental housing scheme under Pradhan Mantri Awas Yojana

The Cabinet also gave its approval for developing of Affordable Rental Housing Complexes (AHRCs) for urban migrants/poor as a sub-scheme under the Pradhan Mantri Awas Yojana – Urban.

The government will continue to bear the entire 24% contribution of both the employers and the employees towards employees’ provident fund (EPF) for another three months – till the wage month of August – for enterprises having less than 100 employees and 90% of them earning less than Rs 15,000 a month.

Aimed at providing liquidity relief to both the employers and the employees belonging to the small and medium sector, the government had, as part of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) package, earlier gave the relaxation to these units for three wage months starting from March. As on June 19, nearly 66 lakh employees availed the benefit, amounting to Rs 1,000 crore.

The Cabinet also gave its approval for developing of Affordable Rental Housing Complexes (AHRCs) for urban migrants/poor as a sub-scheme under the Pradhan Mantri Awas Yojana – Urban. Under the scheme, existing vacant government-funded housing complexes will be converted in ARHCs through concession agreements for 25 years. Special incentives like use permission, 50% additional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing, etc, will be offered to private/ public entities to develop ARHCs on their own available vacant land for 25 years. Approximately, three lakh beneficiaries will be covered initially under ARHCs.

Further, the Cabinet approved extension of time limit for availing three free refill LPG cylinders under the Pradhan Mantri Garib Kalyan Yojana for Ujjwala beneficiaries by three months till September 30. Under the PMGKY-Ujjwala, it was decided to provide free of cost refills for PMUY consumers during April-June. However, many beneficiaries could not fully utilise the benefit during the given period.

The Cabinet, headed by the Prime Minister Narendra Modi, on Wednesday gave its approval to the extension of the scheme that, as per the government estimate, will cost the exchequer Rs 4,800 crore and benefit over 72 lakh employees in 3.67 lakh establishments. The government will provide budgetary support for the entire sum.

As part of Aatmanirbhar Bharat, announced on May 13, finance minister Nirmala Sitharaman had said that the EPF support for business and workers will be extended for the wage months of June, July and August.