The central government has formed a committee to make changes in the New Pension Scheme (NPS). Its head is Finance Secretary T.V. Somanathan. In an interview given to Dainik Jagran after the budget, Somanathan spoke openly on issues like old pension scheme and subsidy.

Question: You are the chairperson of the committee formed to make changes in the New Pension Scheme (NPS). As there is a discussion that a certain part of the last salary in NPS can be earmarked for pension, can you tell us how much that certain part will be and how much financial burden it will put on the government?

Answer: We have done this calculation, but we cannot tell you right now. But we found that the Old Pension Scheme (OPS) is not financially feasible. I think it is not practical at all, if it is implemented then it will be good for the government employee, but it will be against the common man who is in majority.

When OPS is implemented, most of the government budget will go towards the salary and pension of government employees and the government's job will be to collect tax and give it to government employees. This is not the government's job. The burden of pension will fall on the future generation. It will fall on the subsequent government. However, the minimum expectation of employees regarding NPS can be implemented, although even that will increase the cost. NPS is not as bad a scheme as employees think. They think that they will not get anything from NPS, but it is not so.

Question: We spend a lot on subsidies, this time there is a provision of Rs 3.81 lakh crore in major subsidies, can we not reduce the subsidies, what is the Finance Ministry thinking?

Answer: Subsidy can be reduced, we have some methods. Work is going on.

Question: It has been said in the budget that every year 500 companies will make 20 lakh children skilled and give them training. So will one company train 4000 children every year and when will this training work start?

Answer: The outline of the scheme has been given in the budget, its detailed outline is yet to be prepared. The Ministry of Corporate Affairs and other ministries will do this. Its format will be prepared in this financial year and work will start from the next financial year. It will be the responsibility of the company to make the children skilled. Whether the company makes the children skilled in a company related to its supply chain or in any other related company, it will be its responsibility.

These companies spend Rs 26,000 crore under their Corporate Social Responsibility (CSR) and out of this, only 100 companies spend Rs 12,000 crore. That is why we have said that these companies should work towards making children skilled using the CSR funds. However, 90 percent of the allowance or stipend that the children will receive during the training program will be given by the government, the companies will give only 10 percent.

Companies will have to arrange for the training of children from CSR funds. These are big companies, so the work will be done seriously. There will be no possibility of any irregularities in the name of training. Companies keep saying that they are not getting qualified professionals, this shortage will also be removed.

Question: In the budget, it has been announced that plug and play parks will be set up in 100 cities to promote manufacturing. What is the plug and play facility and in which cities will these parks be set up?

Answer: Under Plug and Play, all the manufacturing facilities will already be available at one place. For example, if you want to start battery manufacturing, you will first have to acquire land, electricity, water, pollution and other related licenses. In Plug and Play, everything will be ready in advance, you just go and start work. The Industry Department will work as the nodal agency for this. They will be able to provide correct information about the places where it will be installed.

Question: MSMEs have demanded to change the 45-day payment rule in the Budget as they are saying that they are incurring losses due to it?

Answer: Yes, they had demanded, but we are not removing this rule. Some MSMEs are saying that it is good while some are saying that our orders are getting affected by this, so they were demanding a change in this rule.

Question: People say that in the old tax system, we were saving something by using the exemption given on savings made in 80C, because common people do not have any social security for the future but the government is promoting the new tax system, what would you say on this?

Answer: Look, on one hand, people say why are they deducting from our salary. This is our money. The government is no longer working on the idea that invest for tax exemption. There were many things to save tax. Now it should be left to the citizen to decide where he wants to invest. Now LIC, banks will come and tell you to invest with us, we will give you more returns. This will open up options.