Counselling, Retraining and Redeployment Scheme

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  • The Counselling, Retraining, and Redeployment Scheme (CRR) aims to provide counselling, retraining, and redeployment opportunities to separated employees of Central Public Sector Enterprises (CPSEs) who have been rendered surplus as a result of modernization, technology upgradation, and manpower restructuring in the PSEs. The goal of employee retraining is to reorient them through short-term training programmes so that they may adjust to their new environment and pursue new professions following their separation from the PSEs due to VRS/VSS or retrenchment due to the enterprise’s closure or reorganisation. While it will be impossible to guarantee that employees who have been reorganised or retrenched would be given alternative employment, it should be desired to reorient such people so that they may engage in income-generating activities.
  • Counseling and training programmes will be created accordingly in order to provide them with the skills and orientation they need to engage in self-employment/wage employment activities and rejoin the productive process even after they leave the CPSEs. The redeployment of separated personnel into profitable activity suggests that they have been integrated into the economy. This indicates that they contribute to national income as well.


  • In February 1992, the government established the National Renewal Fund (NRF) as a safety net for employees harmed by re-structuring as a result of the new industrial policy. The goal was to provide cash for the continuance of personnel impacted by the reorganisation or closure of industrial units in both the public and private sectors, as well as monies for job creation initiatives in both the organised and unorganised sectors to offer a social safety net. Counselling, retraining, and redeployment of rationalised staff were part of the NRF, which covered expenditures for voluntary retirement of CPSE employees as well as rehabilitation of employees in the organised sector, which included CPSEs, State PSEs, and the private sector.
  • In May 2000, the Voluntary Retirement Scheme (VRS) for workers of central PSEs was updated. The NRF, which was administered by the Department of Industrial Policy and Promotion, ceased to exist with the revision of the VRS Scheme, and the activities of counselling, retraining, and redeployment provided to separated employees from CPSEs and the organised sector under NRF converged under the Scheme of Counselling, Retraining, and Redeployment (CRR) for the rationalised employees of Central Public Sector Enterprises, which was implemented by the Department of Public Enterprises (DPE).

Features of the CRR Scheme

The three basic aspects of the CRR Scheme, as well as the eligibility requirements, are as follows:

  • Counselling: Counselling is a vital need of the separated employees’ recovery programme. The separated employee need psychological counselling to cope with the stress of losing a steady source of income and to confront new problems, both for himself and for members of his family who may continue to rely on him. He/she need special assistance in planning his/her compensation amount and other financial advantages from the CPSE as a result of his separation, so that his/her limited finances be managed carefully and not spent on immediate consumption or non-productive expenditure.

Third, he must be made aware of the new environment of market prospects so that, based on his aptitude and skill, he may engage in economic activities and continue to be involved in the manufacturing process.

  • Retraining: The goal of such training is to assist separated personnel in their recovery. After losing their occupations, the trainees will be assisted in acquiring the essential skills/expertise/orientation to begin new avocations and re-enter the productive process. These training programmes will be of a short duration and will be tailored to the chosen trade or activity.
  • Redeployment: Counseling and retraining efforts will be made to redeploy such streamlined personnel in the manufacturing process. VRS/VSS optees/dependents should be able to engage in other professions of self/wage employment by the conclusion of the programme. Although there is no assurance that the separated employee will be able to find substitute work, assistance from the selected nodal training agencies as well as the CPSEs involved may be offered to them in order for them to begin new avocations.

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