In a bid to prevent a repeat of the shocking killing of Graziano Transmissioni managing director & CEO LK Choudhary, the UP government has moved a proposal to confer the powers of ex-officio labour commissioner to the heads of New Okhla Industrial Development Area (better known as Noida) and Greater Noida on the outskirts of New Delhi. ?This will go a long way towards settling labour disputes in these twin industrial clusters,? said a state labour department official.

However, since labour is on the concurrent list of subjects in the Constitution, this proposal will require approval by the Centre, which is unlikely under the UPA regime as its National Common Minimum Programme doesn?t allow radical changes to labour laws. The Centre has already refused to clear the proposals of two Congress-run state governments–Andhra Pradesh and Maharashtra?seeking to replicate Gujarat?s Special Economic Zone Act, 2004, which has highly flexible provisions on labour issues.

The Gujarat SEZ law transfers the powers of state labour commissioner to the SEZ development commissioner, as now envisaged by UP, to provide a single-window service for investors. Moreover, it defines all units and other establishments within an SEZ as public utility services under the 1947 Industrial Disputes Act to prevent workers from going on flash strike.

The proposal moved by UP?s state labour department on Wednesday was at an advanced stage of discussion until late evening and is likely to get chief minister Mayawati?s nod on her return to Lucknow from New Delhi on Thursday.

But both the state and central governments are waking up late to the profound implications of Monday?s incident. Mayawati only issued a statement condemning the events late on Tuesday night, a full day after Choudhary?s murder, while Union commerce & industry minister Kamal Nath on Wednesday said ?the stray tragic occurrence would not be allowed to mar India?s (image as an) investment-friendly destination?.

From New York, Prime Minister Manmohan Singh told foreign minister Pranab Mukherjee to convene an emergency meeting on Wednesday with home minister Shivraj Patil, defence minister AK Antony and labour minister Oscar Fernandes to counter repercussions of the event on India?s image as an investor-friendly destination. Top labour ministry officials also held hectic parleys until late evening and couldn?t be reached for comment. But Fernandes, who on Tuesday said that India Inc should consider itself warned, apologised for his statement.

Worried that its attempts to bring in private sector investments could unravel overnight and that existing industries could also head for the exit, the UP government is keen on delegating labour matters to Noida and Greater Noida officials as clearly the labour commissioner in Kanpur had failed to halt the escalation of trouble in the Graziano Transmissioni case.

?The simmering discontent between Graziano Transmissioni and the management was brought to the notice of the labour commissioner’s office in Kanpur and some steps were taken, but it seems not in a proactive manner. So, we are proposing that the CEOs of the two authorities take charge as they will be in touch with industry and take proactive measures whenever necessary,” the state labour department official said.

Mayawati is believed to have taken senior police officials to task for the breakdown in law & order at the Graziano Transmissioni facility. A senior state government official told FE, “Law & order are very important to building a healthy and robust industrial climate in any state. The CM has given strict orders that all possible protection be given to industry and entrepreneurs, and has called for an inquiry by the DIG of police, Meerut Range.?

The Noida and Greater Noida industrial clusters are home to nearly 10,000 companies, including Honda Siel, LG etc.