A panel of ministers that oversees important economic policy decisions on Wednesday permitted the continuation of a welfare scheme that aims to provide interest-free education loans to 10 lakh students for three years up to 2020.
“The interest (on loans) for such students will be completely absorbed by the government for the entire duration of the course,” Prakash Javadekar, Minister of Human Resource Development, told reporters on Thursday.
Javedakar and a group of ministers including law minister Ravi Shankar Prasad addressed a press meet where they explained important decisions taken by the Cabinet Committee, headed by Prime Minister Narendra Modi on Wednesday.
The panel of ministers had approved the welfare scheme named Credit Guarantee Fund for Education Loans Scheme and modified Central Sector Interest Subsidy Scheme with a financial outlay of Rs. 6,600 crore for three years from 2017-18.
The panel also okayed raising the scope of an employment generation scheme. The Pradhan Mantri Rojgar Protsahan Yojna will now contribute the employer's full contribution for the first three years for all sectors it covers, said junior minister of finance Santosh Kumar Gangwar.
First Published: IST