Pitching for ‘Self-Assessment’ of Welfare Cess, Draft Labour Rules to Hurt Construction Workers

News Click | Nov 16, 2020

It marks a break with legal tradition in the construction sector, wherein till now an assessing officer was authorised to indicate the cess amount payable by the employer.

New Delhi: The amount to be collected as cess towards welfare of the construction workers will be self-calculated by employers, the Centre has proposed in the new draft labour rules. The move, say trade unions, will serve to empower construction companies to further shirk their responsibilities towards labour.

A cess that is not less than 1% of the cost of construction, “shall be paid by an employer in advance, on the basis of his self-assessment duly certified by Chartered Engineer at the time of approval or before the commencement of the work,” stated the draft rules of the Code on Social Security, 2020, notified by Union Ministry of Labour and Employment on Sunday, November 15.

The draft labour rules have been notified by the Centre just days ahead of a general strike call by 10 central trade unions and several federations and associations of workers, including those in the unorganised sector, on November 26.

For the purpose of self-assessment, the employer shall calculate the cost of construction as per the rates specified by the State Public Works Department or Central Public Works Department or on the basis of return or documents submitted to the Real Estate Regulatory Authority, according to the draft rules made public by the Central government for inviting stakeholders’ suggestions within a period of 45 days.

The draft rules, which elaborate the procedure for self-calculation and payment of cess, mark a break with the legal tradition in the construction sector, wherein earlier, under The Building and Other Construction Workers’ Welfare (BOCW) Cess Rules, 1998, an assessing officer was authorised to indicate the cess amount payable by the employer, after scrutinising the information furnished by the latter.

The 1998 rules provided for operationalisation of provisions in the 1996 welfare Act for building and other construction workers, that is now subsumed, along with other eight Central labour enactments, under the social security code – passed by Parliament in September this year.

The Act provided for setting up of a welfare board by each state government for utilising the funds collected through the cess for the welfare of construction workers. The benefits for a registered worker with the board included pension, accident insurance, medical aid, scholarship for children among others.

The unions representing construction workers have flayed the ‘codification’ of the 1996 Act that has led to the “dilution” of its already neglected provisions. “The changes will bred corruption that will result in underestimation of the cess amount,” said Thaneshwar Dayal Adigaur, convenor, Nirman Mazdoor Adhikar Abhiyan, a Delhi-based umbrella body of over 40 registered unions in the city.

According to him, the ‘self-assessment’ provision doesn’t address the issues that are plaguing the cess collection process, which is “grossly delayed or not paid”, especially when it comes to the private construction activities.

“Already, not many private firms are registered with the board. Hence, no cess is collected on construction activities that are carried out by them. When it comes to the ones that are registered, they usually have a history of being not completely honest with the authorities. Allowing them to calculate the cess amount on their own may further give rise to instances of under-collection or ill-calculation of the welfare cess,” said Adigaur, a member of the advisory committee to the Delhi government that oversees matters relating to the construction workers’ welfare board.

Even as an assessing officer retains the authority to issue notices to an employer in case of any discrepancies in the calculation of construction cost and the cess amount, much of their other powers in keeping a check on construction activities have been taken away, as per the draft rules.

The draft rules propose that an assessing officer should visit the construction site only with prior approval from the Secretary of the BOCW concerned. Also, the power to stop construction work – for a period deemed necessary for the purpose of any examination – is now proposed to be withdrawn.

Furthermore, the rate of interest for delayed payment of cess has been reduced from 2% every month or part of a month to 1%, thereby giving a “breather” to the offenders.

A press note by the Labour Ministry on Sunday, however, claimed that the new code entitles even those workers to benefits under BOCW, who have migrated from one state to another. The responsibility to provide benefits in such cases shall lie with the board of the state in which a worker is currently working, it says.

It may be noted that the 2020 Code on Social Security already reduces the coverage of the legal provisions under it by not including any construction work that employs less than 10 workers or any project for residential purposes that is worth up to Rs. 50 lakh. Such a threshold amount was Rs. 10 lakh under the earlier BOCW Act, which also required all the establishments – irrespective of the number of workers employed – to get registered under it.

Subhash Bhatnagar, coordinator, National Campaign Committee for Construction Labour (NCC-CL), rued how the labour codes rob vulnerable construction workers of the legal shield that was meant to protect them. “As many as 64 clauses of the 1996 BOCW Act have now been reduced to only seven (this number is actually nine) under the social security code; while 15 of those under the 1998 rules are now down to only six (which is actually seven),” he told NewsClick.

Bhatnagar admitted that this could be so because “90% of the BOCW Act was related to the safety of construction workers,” who were supposed to find space under The Occupational Safety, Health and Working Conditions (OSH&WC) Code, 2020 –one among the total four labour codes.

Is that the case? Not really, said Bhatnagar, adding that “in fact, what the Centre has done is to compromise the occupational safety provisions for construction workers by clubbing it with other industries.”

He said relaxing the threshold limit for cess collection on residential projects would also put “negative pressure” on the registration of construction workers employed for such activities with the welfare board.

In March, as the country was going through a sudden COVID-triggered lockdown, the Centre issued an advisory asking all state governments to distribute the Rs. 52,000 crore – a cumulative amount collected as cess by the respective BOCW boards – among the 3.5 crore construction workers.

Trade unions had then reportedly pegged the total number of labourers engaged in the sector, and in need of an assistance, to be nearly six crore.

The draft rules, in a bid to provide app-based workers and those within the unorganised sector with benefits under the social security schemes, has provided for an Aadhaar-based self-registration system on the portal of the Central government.

Here again, app-based firms (colloquially known as the gig economy) will be contributing towards the fund for welfare of their workers after self-assessment.

Gig economy companies are required to make contributions to the fund that “shall not exceed five per cent of the amount paid or payable” to its platform workers, the Code on Social Security had stated earlier. As for the funding towards the welfare of unorganised workers, the draft rules have reportedly failed to provide any clarity, say unions.

DMF funds to be utilised for welfare of people: Odisha CM

The New Indian Express | Nov 08, 2020

Chief Minister Naveen Patnaik on Saturday said funds from the District Mineral Foundation (DMF) will be utilised for welfare of the people.

BHUBANESWAR: Chief Minister Naveen Patnaik on Saturday said funds from the District Mineral Foundation (DMF) will be utilised for welfare of the people. Inaugurating the mini-hydro power project at Singhanali in Keonjhar district through video conference, the Chief Minister said the State grid will get 100 million units of power from this project.

Stating that the project is a milestone in green and renewable energy sector, the Chief Minister said such small energy projects will help the State tackle the environment that changes well. Implemented by the Hyderabad-based Baitarani Power Project Pvt Ltd, it will benefit the people of Anandapur.

Stating that Keonjhar has made immense contribution to the State as well as national economy, the Chief Minister said the government is taking steps for overall development of the district. Minister of State for Skill Development and Technical Education Premananda Nayak, Minister of State for Energy Dibya Shankar Mishra, Chief Secretary Asit Tripathy and 5T Secretary VK Pandian were present.

Tribal Rights Compromised for National Highway in Andhra, Say Locals and Activists

News Click | Ayaskant Das | Nov 07, 2020
Locals and activists allege no public hearing is being conducted for NH 516-E while officials say full transparency is being maintained since the project is partially funded by the World Bank.

New Delhi: A 390-km long national highway project is being developed by the Andhra Pradesh government in the Eastern Ghats, in a predominantly tribal area, allegedly without proper public consultations. The proposed two-lane highway, National Highway (NH) 516-E, partially funded by the World Bank, will link Rajahmundry with Vizianagaram in Andhra Pradesh and affect several tribal-dominated villages alongside its alignment.

The allegations, made by locals and activists, have however been denied by the Union Ministry of Road Transport & Highways (MORTH) who have claimed total transparency in their operations. Though the project is 390 kilometres in length, ministry officials said it needs no Environmental Clearance as per law because none of the individual packages are over 100 kilometres in length, nor more than 60 metres in width.

In October, a group of activists wrote to the collectors of three districts of eastern Andhra Pradesh alleging non-compliance of laws in the execution of the project.

The proposed highway would run through three districts—Vizag, Vizianagaram and East Godavari. Two of these districts, Vizag and East Godavari, have regions under their jurisdiction that have been declared as Scheduled Areas by the Union government owing to preponderance of tribal population and their economic backwardness.

LACK OF PUBLIC CONSULTATION
An analysis of Environment Impact Assessment (EIA) reports for two sections of the proposed highway, that is, the Bowadra-Vizianagaram section and the Paderu-Araku section, shows that not only were many villages kept out of public consultations but the number of attendees in the hearings were abysmally low. Reports for these two sections prepared by the Andhra Pradesh Roads & Building Department are dated November and December 2019, respectively. These two sections will be funded by the World Bank.

As per the EIA report of the Paderu-Araku section, which is 49.37 kilometres long, public consultations were conducted in October 2018 only for Gram Sabhas of four of the nine affected villages. Each hearing was attended by 30-50 people. The cumulative population of all nine villages, as per Census 2011, is 16,307. However, the number of people from amongst this population who belong to the Scheduled Tribes category is 12,365, which is a whopping 75.82%.

This Paderu-Araku section of the existing road is in an unusable condition and roughly four per cent of it is double-laned. According to locals, the region through which the road would traverse is moderately rich in wildlife as well. Boars and bears are found in the forested areas of the region apart from isolated instances of sightings of cheetahs and tigers.

The proposed highway in this section will affect local vegetation, forest cover, agricultural crops and human habitations too at certain locations. Most of the land along the project road is adjacent to agricultural area, built up area and forest area, whereas there is nominal barren land.

The EIA reports further state that widening of the existing unusable road to a double-laned highway will require land acquisition that may lead to loss of property and livelihoods apart from loss of standing productive crops and vegetations.

Similarly, as many as 18 villages are located along the proposed highway’s Bowadra-Vizianagaram section, which is 26.94 kilometers long. Yet, public hearings through Gram Sabhas were held in March 2018 in only five of those villages in this section, according to the EIA report. Each hearing was attended by 15-30 persons only. The EIA report does not even mention the names of the people who attended these public hearings as is required under the law.

The entire highway project is being developed in nine packages, out of which 209 kilometres will be built with assistance from the World Bank. Officials said construction will soon commence on three packages for which work orders have been awarded.

“There are a number of coffee plantations alongside the proposed highway where farm owners are reluctant to part with their productive land. Even if land is acquired, a good rate of compensation is expected as per the new land acquisition act. Several bridges and culverts are part of the proposed highway project,” said Venkat Rao, a resident of Araku, expressing his concerns over the project’s impact.

“Also, where are the environmental safeguards for quarrying stones and boulders that will be used to build these bridges and culverts?” Rao asked.

Quarrying of minor minerals will also be required for black-topping of the entire stretch of the highway.

ALLEGED VIOLATION OF TRIBAL RIGHTS
Activists say that public consultations are a must in all project-affected villages as per a judgement of the Andhra Pradesh High Court. In 2013, the high court had reversed a notification of the Union Ministry of Environment and Forests (MoEF), as it was called back then, ruling out the need for public consultants in case of linear infrastructure projects like roads, bridges, canals and so on.

“Notwithstanding the MoEF guidelines dated 5th February, 2013, Authorities responsible for implementation of PESA Act [Panchayats (Extension to Scheduled Areas) Act] in the state and central government are required to ensure consultation with the gram sabha or the panchayats at appropriate level as required under the PESA act even in case of projects like construction of roads, canals, laying of pipelines, optical fibers, transmission lines etc. in scheduled areas where linear diversion of use of forest land in several villages is involved,” stated the high court order.

The proposed highway would run in close proximity to coffee plantations and deciduous forests of Araku and Lambasingi. The project is also close to Borra Caves in the Ananthagiri Hills which are considered the deepest caves in the country. Locals from tribal-dominated villages have been asking for proper public consultations while activists have demanded the state government to ensure compliance with rules.

“Not conducting Gram Sabhas in all project-affected villages is a direct violation of the PESA Act. In the Samata judgement, the Supreme Court had held that transfer of land to non-tribal people in Scheduled Areas is illegal,” said Rebbapragada Ravi of mines, minerals & PEOPLE (mmP), a network of individuals and organisations affected by mining. “There is a need for black topping of the entire stretch of the highway. The quarry leases for minerals that would be needed for black topping have not been considered in the EIA report. These leases cannot be given to non-tribal people either as per law,” he added.

The Supreme Court had, in the landmark Samata judgement in 1997, held that in accordance with the PESA Act, “tribal autonomy of management of their resources including the prevention of the alienation of the land in the Scheduled Areas and taking of appropriate action in that behalf for restoration of the same to the tribals, is entrusted to the Gram Panchayats.”

When contacted, officials of the Andhra Pradesh Roads & Building Department told Newsclick that the project is being directly implemented by the central government through the MORTH and that the Department’s role is limited to land acquisition matters only. A senior official of the MORTH in Andhra Pradesh said the land acquisition procedure is underway – notification has been issued in some of the villages while many other villages are awaiting notification.

“Land acquisition is not complete in any case and compensations are yet to be awarded. The allegations that public consultations are not being conducted are totally baseless. Gram Sabhas are being conducted in each village. Since this is a project funded by the World Bank, total transparency and accountability are being maintained. These are Scheduled Areas and consent of local villagers for land acquisition is a must for the World Bank before it renders assistance for the project,” SK Singh, Regional Officer of MORTH in Vijayawada told NewsClick.

Centre Signals Over Rs 35,000 Crore Fund Cut for Polavaram Project, Affected Families Still Await Compensation

News Click | Prudhviraj Rupavath | Oct 24, 2020

As per government records, just less than 4% rehabilitation works have been completed in the last six years.

Hyderabad: The Union Finance Ministry has reportedly said that it will only sanction the project cost of Polavaram irrigation project at the 2013-14 price level which was Rs Rs 20,398.61 crore against the revised cost estimates of the Polavaram Project Authority (PPA) at the 2017-18 price level (Rs 55,548 crore) which was also approved by the Union Jal Shakthi Ministry. In other words, the finance ministry has signalled that there will be a fund cut to the tune of about Rs 35,150 crore.

While the YSRCP led Andhra Pradesh state government is yet to respond on the differences between the union ministries and the cut in project funding, activists are sensing a political conspiracy in the state which will not just delay the construction of the project but worsen the situation of lakhs of project oustees who are awaiting the government compensation for their villages, agriculture and forest lands acquired for the project.

Reportedly, Union Finance Minister Nirmala Sitaraman told Andhra Pradesh Finance Minister Buggana Rajendranath Reddy on Friday, October 23, that the Centre will reimburse only Rs 7,053.74 crore, which is pending as per the project cost at the 2013-14 price level.

“It seems like the central government is signalling that it would further delay the project, perhaps for the benefits of its party’s politics in the state,” said J Babjee, state secretary of Andhra Pradesh Vyavasaya Vruthidarula Union (APVVU), who has been organising the project affected families for claiming their legal rights. “But, the project affected families will be devastated as they have been waiting for compensation for years as they were not even provided with alternative livelihood sources,” he said.

In 2014, the Polavaram multipurpose irrigation project was declared as a national project during the bifurcation of erstwhile Andhra Pradesh into two states. The previous Telugu Desam Party government in the state took over the responsibility of the execution of the project as agreed by the Union government. The project cost was revised several times in the last 10 years both under the United Progressive Alliance and the National Democratic Alliance led governments.

In March, the Union Jal Shakti Ministry stated in Parliament that out of 1,05,601 Project Displaced Families of Polavaram project, rehabilitation and resettlement (R&R) works with respect to only 3,922 families has been completed.

Notably, 50% of the affected people are adivasis belonging to Koya and Kondareddy communities, and nearly 30% of the remaining belong to Scheduled Castes and Other Backward Castes.

After coming to power in 2019, YSRCP led government under Chief Minister Y S Jagan Mohan Reddy had called for reverse tendering of the Polavaram project and also enhanced the compensation to be provided for the project oustees.

In September last year, infrastructure major Megha Engineering and Infrastructure Limited (MEIL) acquired the contract for construction of the irrigation project including hydel power project for Rs 4,358 crore through a reverse tendering process called by the state government.

“In spite of being aware of the developments in the state concerning the project cost, the Centre has remained silent and is now reversing its own ministries approvals,” said Babjee, while expressing concerns about a “political conspiracy”.

As per the government records, less than 4% of the rehabilitation works have been completed in the last six years.

Further, in August 2019, the YSRCP government through a government order (GO) number 350 has enhanced rehabilitation entitlements for project affected families ensuring Rs 5 lakh more compensation and additional 25% benefits for SCs, STs living in the scheduled areas.

“Non implementation of the GO Ms No 350 will amount to breach of contract on the part of the state government,” said Babjee.

NewsClick has earlier reported that the recent floods this year in East and West Godavari districts have devastated thousands of families including those living in the Polavaram region.

The project affected families have also led numerous movements for compensation against over 51,000 acres of community forest land which was acquired from Tribes for Polavaram project.

District Mineral Fund collections bounce back from lockdown lows

Business Line | Oct 13, 2020

Rebound reflects recovery in mineral production across the country
Monthly collections in District Mineral Funds (DMF) have recovered significantly from their lockdown lows, with the gap between collections during 2020 and 2019 narrowing by September-end.

According to data shared by the Ministry of Mines, country-wide DMF collections last month stood at ₹718.46 crore, up from ₹417.29 crore in May, when the country was in the throes of the Covid-19 lockdown.

But compared to the ₹770.99 crore accrued in September 2019, the collections trailed by 6.81 per cent year-on-year.

Under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), mining companies have to make a contribution for the development of districts where mining activities take place, over and above their royalty payments.

These DMF collections, therefore, are directly linked to the country’s mineral output.

The amount is accumulated in funds controlled by individual District Mineral Foundations.

Arriving at the amount

For mining leases granted on or after January 12, 2015, an incremental amount equal to 10 per cent of the royalty needs to be parked by the mining companies towards DMF contributions.

For those granted before January 12, 2015, the contribution is equal to 30 per cent of the royalty.

Since the royalty is levied either on a per-tonne basis or ad valorem (linked to the sale price of minerals), across States, an increase in mineral output means higher royalties being collected. This also means more accruals in the DMF. With the lockdowns curtailing economic activity, mineral production also took a hit.

1 35 36 37 38 39 142