 Established by Central Government in 1992  Benefit the workers affected by :-- Modernisation Closure of unit Industrial Restructuring

Provide assistance to firms to cover the cost of retaining and redeployment of employees Provide funds for employment generation schemes Provide funds for compensation to employees

 Administer by the Department of Industrial Development  Proposed to have two parts:-- Employment Generation Fund National Renewal Grant Fund

Employment Generation Fund Provides resources to approved employment schemes In organised and unorganised sectors National Renewal Grant Fund Meet the compensation Training expenditure of retrenched workers

 Exit Policy refers to the policy regarding the retrenchment of the surplus manpower resulting from restructuring of industrial units or the workers becoming unemployed by the closure of the sick units.

 To protect the interest of the workers.  The exit policy is most pro-labour policy.

 The biggest loss is to the labour force.  The legitimate interests of labour are protected only when there is legal closure if a sick mill.

 Mixed approach of workers.  Some workers cooperate and some oppose.  There behaviour towards this scheme depends upon two factors---- Factors Attractiveness of the scheme Assessment of the future of the enterprise