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What are the objectives of National Renewal fund? Do you think it’s time move ahead of NRF to bring back the economic stability of the country? Analyse

Topic:  Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

3.  What are the objectives of National Renewal fund? Do you think it’s time move ahead of NRF to bring back the economic stability of the country? Analyse (250 words)

Reference:  Business Standard 

Why this question:

The article brings to us the purpose and utility of the National Renewal Fund in the current times and the need to move ahead of it.

Key demand of the question:

Explain the key objectives of National Renewal Fund and analyse as to why it is time move ahead of NRF to bring back the economic stability of the country.

Directive:

AnalyzeWhen asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.

Structure of the answer:

Introduction:

Briefly set the context of the question.

Body:

  • To start with, explain what NRF is.
  • Context – it is time to move ahead with National Renewal fund to bring back the economic stability of the country.
  • Discuss the objectives – The main objective of the National Renewal Fund was to provide a social safety net to the workers who are likely to be affected by technological up-gradation and modernisation in the Indian industry.
  • Highlight its present status – The National Renewal Fund was abolished by the government in 2000 and administration of the VRS scheme was shifted to Department of Public Enterprises (DPE), instead of DIPP from fiscal year 2001-02.
  • Explain why NRF was abolished? – The reason for abolishing NRF was that most of the payments under this were made for VRS and this fund did not serve adequately the purpose of retraining and rehabilitation. Further, private sector was also listed as one of the beneficiaries of the NRF, but later it was felt that this fund should deal exclusively with the public sector units only.

Conclusion:

Discuss what should be the way forward.