Govt asks states to align job schemes with ₹99,446-cr ELI programme

Union Labour Minister urges state-level integration with Employment Linked Incentive scheme, aimed at creating 35 million formal jobs over two years

The Centre has called on states to align their employment-oriented initiatives with the newly launched Employment Linked Incentive (ELI) Scheme. This move is aimed to maximise job creation, deepen formalisation, and strengthen the country’s employment ecosystem.

 

Chairing a high-level virtual meeting with state labour and industry ministers on Monday, Union Labour & Employment Minister Mansukh Mandaviya said, “Labour and industry are two sides of the same coin. Both must work in close coordination for the greater good of the nation's workforce and economy.”

 

Mandaviya urged the state governments to integrate their existing employment programmes with the ELI scheme’s objectives to ensure coordination and avoid duplication of efforts.

 

 

Referring to the Reserve Bank of India’s KLEMS data, Mandaviya noted that over 170 million employment opportunities were generated over the past decade, mainly in sectors such as construction, manufacturing, and services. “We must build on this momentum. The ELI Scheme is a strategic tool to do so,” he said.

 

What is the Employment Linked Incentive scheme?

The Employment Linked Incentive scheme, or ELI, is a central government initiative aimed at accelerating formal job creation by providing financial incentives to employers who generate net new employment, particularly for the youth. The scheme has a total outlay of ₹99,446 crore and targets the creation of 35 million jobs within two years.

 

The ELI scheme is seen as the next major step after the Production Linked Incentive (PLI) programme.

 

“The ELI Scheme represents the next step in building an Atmanirbhar Bharat. It is a win-win for employers and job seekers alike,” Mandaviya said, adding that procedural formalities have been simplified to ensure ease of access and mass adoption.

 

Ministry secretary Vandana Gurnani added that the first instalment of incentives under the scheme would be disbursed following six months of continuous employment. Gurnani added that the scheme also seeks to extend social security coverage and improve employability, particularly in the manufacturing sector.

 

States to hold district-level meetings on ELI

This meeting was well received, with ministers from states including Gujarat, Assam, Bihar, Madhya Pradesh, Jharkhand, Chhattisgarh and Arunachal Pradesh expressed support for the scheme and assured cooperation in its rollout. While many agreed to align their state-run employment initiatives with the ELI scheme, others also suggested holding district-level awareness programmes, in a bid to encourage collaboration with industry chambers and local businesses.

 

[With agency inputs]