Sonia Gandhi appeals to PM Modi
PORTS & SHIPPING

Sonia Gandhi appeals to PM Modi

Sonia Gandhi, Chairperson, Congress Parliamentary Party, has raised the issue of the welfare of construction workers with Prime Minister Narendra Modi (see letter attached herewith).


The construction industry employs 30 million people, more than the population of Australia or Malaysia; yet only 4 per cent of the current 32 million workers are skilled. This means 30.72 million workers are unskilled! Thus, obtaining high productivity through mechanisation and the use of advanced tools will remain elusive at a macro level. An unskilled force will lead us to lose qualitative aspects in the quest to chase quantitative targets. Today, trained workers from countries like Korea, Vietnam and the Philippines have 10 times the productivity of India workers in the use of tools and equipment. Indeed, India is very low down on the labour productivity index. To double the income of construction workers, they ought to be trained.

Various Central Government laws are meant to provide welfare measures for construction workers, of which the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act of 1996 and the Building and Other Construction Workers Welfare Cess Act of 1996 are the most important.

They provide for a welfare fund for workers that states create by levying a cess of 1-2 per cent on construction projects, applicable to any establishment employing 10 or more workers and to projects costing over Rs 10 lakh. State welfare boards collect the cess and pay social security benefits to workers who register with them. Workers aged between 18 and 60 years who have been engaged in building or construction work for at least 90 days in the preceding 12 months are eligible to register. The benefits include pension, assistance in case of an accident, housing loan, education, group insurance premia, medical expenses and maternity benefits.

However, 23 years after the Acts were passed, implementation has remained so poor that most funds gathered remain unutilised. Most states did not even constitute welfare boards until as late as 2011, so the cess collected was not disbursed. Uttar Pradesh, which recorded the highest number of construction workers (12 million) in 2016-17, was one of them, according to data compiled by the National Campaign Committee for Central Legislation on Construction Labour.

According to a report by IndiaSpend, even Maharashtra and Gujarat are trailing in terms of cess collection and disbursal, as per the India Exclusion Report 2017, published by the Centre for Equity Studies, New Delhi.

Of the Rs 38,685.23 crore collected since 1996 as welfare cess, only Rs 9,967.61 crore, or 25.8 per cent, has actually been spent. A detailed report appears in The Scroll. The concerns cited by Sonia Gandhi can be well addressed by utilising the unutilised cess of over Rs 280 billion, which can be deployed for training, insurance of workers and other social benefits. In times of the COVID19 pandemic, when building and construction workers have departed to their villages in the face of lockdown orders, the fund can come to their rescue.

The Ministry of Labour ought to take up the issue of registration of workers so they can avail of the benefits through the Direct Benefit Transfer mechanism.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Sonia Gandhi, Chairperson, Congress Parliamentary Party, has raised the issue of the welfare of construction workers with Prime Minister Narendra Modi (see letter attached herewith). The construction industry employs 30 million people, more than the population of Australia or Malaysia; yet only 4 per cent of the current 32 million workers are skilled. This means 30.72 million workers are unskilled! Thus, obtaining high productivity through mechanisation and the use of advanced tools will remain elusive at a macro level. An unskilled force will lead us to lose qualitative aspects in the quest to chase quantitative targets. Today, trained workers from countries like Korea, Vietnam and the Philippines have 10 times the productivity of India workers in the use of tools and equipment. Indeed, India is very low down on the labour productivity index. To double the income of construction workers, they ought to be trained. Various Central Government laws are meant to provide welfare measures for construction workers, of which the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act of 1996 and the Building and Other Construction Workers Welfare Cess Act of 1996 are the most important. They provide for a welfare fund for workers that states create by levying a cess of 1-2 per cent on construction projects, applicable to any establishment employing 10 or more workers and to projects costing over Rs 10 lakh. State welfare boards collect the cess and pay social security benefits to workers who register with them. Workers aged between 18 and 60 years who have been engaged in building or construction work for at least 90 days in the preceding 12 months are eligible to register. The benefits include pension, assistance in case of an accident, housing loan, education, group insurance premia, medical expenses and maternity benefits. However, 23 years after the Acts were passed, implementation has remained so poor that most funds gathered remain unutilised. Most states did not even constitute welfare boards until as late as 2011, so the cess collected was not disbursed. Uttar Pradesh, which recorded the highest number of construction workers (12 million) in 2016-17, was one of them, according to data compiled by the National Campaign Committee for Central Legislation on Construction Labour. According to a report by IndiaSpend, even Maharashtra and Gujarat are trailing in terms of cess collection and disbursal, as per the India Exclusion Report 2017, published by the Centre for Equity Studies, New Delhi. Of the Rs 38,685.23 crore collected since 1996 as welfare cess, only Rs 9,967.61 crore, or 25.8 per cent, has actually been spent. A detailed report appears in The Scroll. The concerns cited by Sonia Gandhi can be well addressed by utilising the unutilised cess of over Rs 280 billion, which can be deployed for training, insurance of workers and other social benefits. In times of the COVID19 pandemic, when building and construction workers have departed to their villages in the face of lockdown orders, the fund can come to their rescue. The Ministry of Labour ought to take up the issue of registration of workers so they can avail of the benefits through the Direct Benefit Transfer mechanism.

Next Story
Products

Hikvision Boosts Traffic Safety with Smart Entry-Exit Solutions

Smart Entrance and Exit Management Solutions are increasingly vital for improving traffic safety and transport security. Hikvision has introduced advanced systems featuring automated boom barrier gates with multiple pole options, enabling flexible and efficient access control. These solutions address vehicle entry and exit challenges across malls, residential complexes, industrial parks, corporate campuses and retail facilities. By offering detailed vehicle movement records, they reduce risks such as theft or damage while supporting security managers in maintaining safe operations. H..

Next Story
Equipment

John Crane Launches Type 8628VL Seal for Ethane Pipelines

John Crane has unveiled the Type 8628VL, a next-generation mechanical seal engineered to address sealing challenges in multiphase ethane and ethylene pipelines. Using spiral groove non-contacting technology, the seal ensures high reliability, operational efficiency, and environmental compliance under volatile pressure and temperature conditions. Ethane pipelines face frequent phase shifts from liquid to vapour to supercritical, often compromising conventional seals. The Type 8628VL, with dual non-contacting seal faces in tandem configuration, delivers hydrodynamic lift, phase-change resilienc..

Next Story
Real Estate

Embassy’s Paradiso in North Bengaluru Sold Out at Rs 2.04 billion

Embassy Developments has announced that Paradiso, its latest luxury plotted development in Embassy Springs, North Bengaluru, has sold out completely, generating pre-sales of about Rs 2.04 billion. Spread across 6.4 acre, Paradiso offers large-format plots between 4,300 and 4,800 sq ft, starting at Rs 43 million. The project attracted strong demand from high-net-worth individuals and new-age buyers seeking premium plots in low-density, infrastructure-ready communities in Bengaluru’s prime growth corridor. Embassy Springs, a 300-acre township located 15 minutes from Kempegowda Intern..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?