Indian Economy News

Rural employment will have a big boost as more than 31,000 jobs are on the way under DDU-GKY

In order to significantly increase rural employment, the Ministry of Rural Development (MoRD) is signing a Memorandum of Understanding (MoU) with 19 Captive Employers and giving them the goal of training and providing gainful employment to 31,067 rural poor youths under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), with a minimum salary of US$ 121.13 (Rs. 10,000) per month for a minimum period of six months.

At the MoU signing ceremony, a few appointment letters will also be distributed to candidates who had got similar training under the DDU-GKY and were placed with captive employers.

In accordance with the direction of Mr. Giriraj Singh's, the Union Minister of Rural Development and Panchayati Raj, MoRD introduced the Captive Employment Guidelines under DDU-GKY to make sure that applicants are taught in accordance with industry requirements and hired. The company can choose the rural youths, train them, and place them in one of its own establishments, sister concerns, or subsidiaries using the captive employment model.

To meet the requirements of the industry on the one hand and guarantee sustainable placement for rural youth on the other, the Recruit, Train, and Deploy (RTD) model was created. The plan will benefit industry, government, and underprivileged rural youth. The government will guarantee longer placements (minimum six months) for rural poor youth applicants while the industry will be able to offer more hands-on training at the work location itself in accordance with its requirements.

With the advantages offered to the industries for enticing them to participate in the DDU-GKY program, the Captive Employment Guidelines will increase the industry's direct participation, guaranteeing a significant amount of employment for rural youths.

The benefits provided to the captive employers include waiver of the performance bank guarantee, waiver of quality appraisal process and fees, and MoU with MoRD for three years, among others. But the Captive Employers are required to offer Captive (In-house) placement to all the trained candidates and provide captive employment to a minimum 70% of trained candidates for a period of six months.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.