Construction cess of Rs 26,000 crore lying inactive with states

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Construction cess of Rs 26,000 crore lying inactive with states

Construction cess of Rs 26,000 crore lying inactive with states

27 Jul 2017
As per reports, the Minister for Labour and Employment, Bandaru Dattatreya, conveyed in a written Lok Sabha reply that nearly Rs 26,001.23 crore cess is lying idle with the state governments and Union Territories.

Under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, a cess of 1 per cent is imposed on the cost of construction incurred by employers and developers in order to generate fund for accidents, loans, old-age pensions, and medical expenses of the workers.

To ensure that this huge amount is cautiously employed, the centre organised a monitoring committee on September 9, 2015, under the leadership of the labour secretary. The labour minister has also reportedly said that the number of labour law violations has decreased in the past two years. According to data from the Chief Labour Commissioner’s office, the number of labour law violations fell from 241,796 in 2015-16 to 221,252 in 2016-17.

The number of inspections conducted has increased from 29,770 in 2015-16 to 36,067 in 2016-17. Inspections under the Contract Labour Act have however declined to 1,372 in 2016-17, as compared to 2,086 in 2015-16. Inspections conducted under the Minimum Wages Act have also reduced to 9,151 in 2016-17 from 9,803 in 2015-16.


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