GOVERNMENT OF INDIA

MINISTRY OF LABOUR AND EMPLOYMENT

LOK SABHA

UNSTARRED QUESTION NO. 278

TO BE ANSWERED ON 24.06.2019

WELFARE OF CONSTRUCTION WORKERS 278. DR. SHASHI THAROOR:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

(a)the details of total cess amount collected for the welfare of construction workers under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, since 2014, year-wise;

(b)the details of the total utilisation of the cess collected for the welfare of construction workers since 2014, year-wise;

(c)whether the Ministry has taken any specific steps and measures to ensure compliance with the said Act in relation to the utilisation of these funds;

(d)if so, the details thereof; and

(e)if not, the reasons therefor?

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

• & (b): The Building and Other Construction Workers’ Welfare Cess

Act, 1996, provides levy and collection of cess at such rate not exceeding two per cent but not less than one per cent of the cost of construction as the Central Government may notify. The cess has been levied and being collected at the rate of 1% of the cost of construction as notified by the Central Government in the Official Gazette.

Contd..2/-

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The cess at the above rate is collected by the State Governments/Union Territory Administrations and utilized for the welfare of the building and other construction workers by the State Building and Other Construction Workers Welfare Boards constituted by the State Governments/ Union Territory Administrations under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

The details of the total cess amount collected and spent is not maintained centrally. However, the cumulative total of the amount of cess collected and spent by the States/ UTs up to 31.03.2019 provisionally is annexed.

• to (e): The Central Government has been issuing directions under Section 60 of the Building and Other Construction Workers (RECS) Act, 1996, to the State Governments/UT Administrations from time to time for proper utilization of cess fund in terms of the provisions of the Act.

Further, the Central Government has constituted a Monitoring Committee on 09.09.2015 under the Chairmanship of Secretary (Labour and Employment) to monitor the implementation of directions issued under Section 60 of the Act, specifically with reference to utilization of Cess fund for Welfare Schemes by the State Building and Other Construction Workers’ Welfare Boards. The Committee has been holding regular meetings with the Principal Secretary/ Secretary/ Labour Commissioners of all the States/ UTs to monitor the progress. 10th meeting of the committee was held on 04.06.2019.

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Annexure

Annexure referred to in reply to part (a) & (b) of Lok Sabha unstarred question No. 278 for 24.06.2019.

State-wise position of Cess Collected and Amount Spent under the Building and Other Construction Workers Acts, 1996

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