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Question

What was the main purpose of the National Renewal Fund?

The correct answer is

To provide assistance to cover the cost of retraining and redeployment of labour.

The National Renewal Fund (NRF) was set up by the Government of India in February 1992 in the wake of the economic reforms and liberalisation.

As industries were restructured and public sector units downsized, many workers faced retrenchment and job losses.

The NRF was created to provide funds to cover the cost of retraining and redeployment of such affected labour and to give compensation under voluntary retirement schemes.

It thus acted as a social safety net to cushion workers against the adverse effects of structural adjustment, and was not meant for foreign investment, external borrowings or disaster relief.

Hence, its main purpose was to provide assistance to cover the cost of retraining and redeployment of labour.

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