Daily News Analysis

PM Cares Fund

1st June, 2021 Economy

GS PAPER III: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: In a bid to support children who lost their parents to the Covid-19 pandemic, govt. announces Rs 10 lakh, free education for children orphaned in pandemic.

Other benefits:

  • PM Cares will contribute through a specially designed scheme to create a corpus of Rs 10 lakh for each child when they reach 18 years of age.
  • Children will receive assistance in getting education loan for higher education and PM Cares will pay interest on the it.
  • Orphaned children will receive a monthly stipend once they turn 18 and a fund of Rs 10 lakh when they turn 23.
  • The government will also ensure free education for such children.
  • Free health insurance of Rs 5 lakh under Ayushman Bharat till 18 years and premium will be paid a part of the scheme.

School education for children under 10 years

  • The child will be given admission in the nearest Kendriya Vidyalaya or in a private school as a day scholar.
  • If the child is admitted in a private school, the fees as per the RTE norms will be given from PM Cares.
  • PM Cares will also pay for expenditure on uniform, text books and notebooks.

School education for children between 11-18 years

  • The child will be given admission in any Central Government residential school such as Sainik School, Navodaya Vidyalaya etc.
  • In case the child is to be continued under the care of guardian/ grandparents/ extended family, then he or she will be given admission in the nearest Kendriya Vidyalaya or in a private school as a day scholar.
  • If the child is admitted in a private school, the fees as per the RTE norms will be given from the PM CARES.
  • PM Cares will also pay for expenditure on uniform, text books and notebooks.

Support for higher education

  • The child will be assisted in obtaining education loan for professional courses / higher education in India as per the existing education loan norms. The. interest on this loan will be paid by the PM Cares
  • As an alternative, scholarship equivalent to the tuition fees / course fees for undergraduate/ vocational courses as per government norms will be provided to such children under central or state government schemes.
  • For children who are not eligible under the existing scholarship schemes, PM Cares will provide an equivalent scholarship.

https://www.indiatoday.in/coronavirus-outbreak/story/pm-cares-for-children-rs-10-lakh-fund-free-education-for-children-orphaned-in-pandemic-1808464-2021-05-29