Narendra Modi harvests power of 5 to boost business climate: All you need to know

Written by ENS Economic Bureau | New Delhi | Updated: Oct 17 2014, 21:50pm hrs
Narendra ModiPM Narendra Modi has launched five labour schemes that aim at improving the ease of doing business in India. (PTI)
Bringing an end to one of the last bastions of red tapism and inspector raj in the country, Prime Minister Narendra Modi on Thursday launched five labour schemes that aim at improving the ease of doing business in India as well as enhance social security measures for workers.

The schemes are the next set of reforms in labour after the government initiated amendments to outdated laws such as the Factories Act and the Apprentices Act.

POWER OF FIVE

Shram Suvidha Portal: A unified web portal where employers can get registered with a unique labour identification number (LIN) and submit a single online return to comply with 16 Central labour laws. Self certification of returns is allowed. Move to benefit 6 to 7 lakh industrial units.

Impact: Will ease cumbersome compliance procedures for labour laws.

Labour inspection scheme: Based on returns submitted on the Shram Suvidha Portal, computerised random list of units will be taken up for labour inspections. The portal will be operative in four Central agencies EPFO, ESIC, Central Labour Commissioner and Director General of Mines Safety. All 1,800 labour inspectors will be expected to upload reports within 72 hours of inspections.

Impact: Cut down on over 3 lakh inspections annually and bring in transparency.

Universal Account Number for Provident Fund: Account number portability to 4.17 lakh EPFO subscribers who can continue with the same PF number when they change jobs. UAN is being seeded with Aadhaar number and bank account

number.

Impact: Provide security of savings to private sector workers, help return Rs 27,000 crore lying in operative accounts.

Apprenticeship Protsahan

Yojana: Apprenticeship scheme is being revamped to boost skill development efforts. Total number of seats being increased to 20 lakh from current 4.9 lakh. Higher stipends indexed to minimum wages along with revised courses to be offered. Government to reimburse 50 per cent of stipend paid by employers.

Impact: Will increase employability of youth by giving them skills. At present, just 2.82 lakh apprentices under the scheme.

Revamped Rashtriya Swasthya Bima Yojana: Enrollment with RSBY to be linked with opening of bank account and issuance of Aadhaar card. Scheme currently covers 3 crore workers will be expanded to include construction sector. Single central smart card to be issued to include other welfare schemes like Aam Aadmi Bima Yojana and National Old Age Pension Scheme.

Impact: Increased benefits, higher transparency and effective delivery system

Reforms to continue: The government plans to amend the Child Labour (Prohibition and Regulation) Act and introduce a single labour law for the MSME sector. Crucial changes in the Industrial Disputes Act, 1947, will allow easier hiring and retrenchment of workers.