+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code