The Centre has set up a task force to monitor allocation of labour cess for welfare schemes aimed at the unorganised sector workers, after the prime minister?s office stepped in to improve performance of the fund.
According to the estimates with the Union ministry of Labour, almost Rs 2,800 crore, collected under the labour cess, is lying unused. While Rs 2,270 crore was collected till February this year, merely Rs 638 crore was spent for welfare schemes till that time.
Labour cess, collected under the Building and other Construction Workers (RECS) Act, 1996, aims at providing safety and health measures for the construction and other workers. It is also aimed at regulating the employment and conditions of service and making provisions for social security and welfare measures.
Although there has been significant amount of collection under the scheme, the states have not performed well on disbursing the funds. ?Other than Tamil Nadu and Kerala, most others have performed much below the desired levels in using the money,? said Harish Rawat, Union minister of state for Labour.
Present at an interactive session organised by the Bharat Chamber of Commerce, he said, ?We have set up a task force under the direction of the Prime Minister?s office to take stock of the situation. The task force will also prepare the roadmap for better usage of the labour cess.?
A special group has already been constituted under the chairmanship of Union Labour secretary. The group holds region-wise meetings with the state officials to emphasise the urgency and importance of the effective implementation of the Act.
