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SSC CHSL 2025 PYQ — Question 91

SSC CHSL - 14 Nov 2025 - Shift 3 • General Awareness • Q91

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What was the main purpose of the National Renewal Fund?

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Correct answer: C

Explanation

The correct answer is Option 3: Providing assistance to cover the costs of retraining and redeployment of workers.
Explanation:
The National Renewal Fund (NRF) was established by the Government of India in February 1992. Its primary objective was to safeguard the interests of workers affected during the process of economic reforms and industrial modernization.
Background: Following the economic reforms of 1991 (LPG reforms), the restructuring or closure of several Public Sector Undertakings (PSUs) became inevitable. This posed a threat to the jobs of workers, and the NRF was created to address this issue.
Key Objectives:

  • Skill Development: To retrain workers whose skills had become obsolete.
  • Redeployment: To assist workers in securing employment in other new and emerging industrial sectors.
  • Social Security: To provide funds for compensation and other benefits for workers opting for Voluntary Retirement Schemes (VRS).

Three Main Components of the NRF:

  • Resource and Training Fund: Dedicated to worker guidance and skill development.
  • Employment Generation Fund: To provide financial assistance for self-employment schemes.
  • Worker Compensation Fund: To provide financial relief to workers who lose their jobs due to restructuring.
  • Additional Information (The End of the NRF):
  • In the year 2000, the government reviewed the functioning of the NRF and decided to formally wind it up. Its functions and responsibilities were transferred to the relevant ministries and departments to ensure that the process of industrial modernization could be carried out in a more specialized and focused manner.

Important Questions for Upcoming Examinations:
Question: In which year was the National Renewal Fund (NRF) established?
Answer: 1992.
Question: What is the primary focus of the 'Exit Policy'?
Answer: Industrial restructuring and worker compensation/protection (the NRF was a key component of this). Question: Under which Union Ministry did the NRF function?
Answer: Department of Industrial Development (Ministry of Commerce and Industry).