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.

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
Real Estate

Integrated Waterproofing Strategies

Waterproofing buildings used to be an annual pre-monsoon affair but the evolution of real-estate development has changed that approach. In new developments, developers are weaving waterproofing solutions into both the design and construction phases, an approach that Nikhil Madan, Managing Director, Mahima Group, says, “is all about ensuring lasting durability [of the building] and keeping lifecycle risks including water seepage and extensive maintenance to a minimum.”Watertight by designAluminium formwork systems aren’t commonly thought of as a waterproofing tool but at the Mahima Group,..

Next Story
Infrastructure Urban

GROHE Showcases Water-Led Design At Milan

GROHE unveiled its GROHE SPA Aqua Sanctuary at Milan Design Week 2026, transforming Piccolo Teatro Studio Melato into an immersive showcase of water, design and wellbeing. Built on the philosophy of ‘Wellbeing Through Water’, the installation reimagined bathrooms as holistic spaces for relaxation, rejuvenation and self-care.The Aqua Sanctuary was presented through three interconnected sanctums. The first showcased the 3D-printed GROHE SPA AquaTree shower and faucet, highlighting bespoke innovation and biophilic design. The second featured the Atrio Private Collection and GROHE SPA x Buster..

Next Story
Infrastructure Transport

Rahee Group Expands Rail Manufacturing Capacity

Rahee Group has outlined a multi-year investment roadmap to expand its operational footprint and strengthen manufacturing capabilities for India’s growing railway and urban transit sector. The Group is expanding in Odisha with a new Track Component Casting Unit, for which the groundbreaking ceremony was held on 8 April 2026 in the presence of Odisha Chief Minister Mohan Charan Majhi.The Group’s flagship EPC arm, Rahee Infratech Ltd, continues to focus on complex rail infrastructure projects, including track systems, bridges, viaducts and ballastless infrastructure. Its wholly owned subsidi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement