Construction cess collection falls short of target

The Orissa government may not meet the target for collection of cess imposed under the provision of the Building and other Construction Workers’ Welfare Act, 1996.

The government targeted to collect Rs 100 crore during 2009-10, but it could collect only 19.55 crore by the end of February 2010, sources said.

The state government is facing legal hurdles in this regard as some private companies and contractors have moved the Orissa High Court challenging the cess. Besides, non-collection of the cess at source by various government departments and development authorities has contributed to this poor collection.

According to sources, the cess collection was highest in Khurda district at Rs 2.91 crore. This was followed by Mayurbhanj district (Rs 1.85 crore) and Keonjhar district (Rs 1.5 crore). The cess is being collected at the rate of one per cent of the total value of construction since April 2009. To give a boost to the cess collection, the government had made it applicable to the rural electrification projects taken up under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).

The cess is being added to the project cost of the work taken up under the scheme. Sources said, the government received 31,057 applications from building and construction workers for registration and Rs 6,21,620 was collected as registration fee from them. Similarly, 32,843 identity cards were issued to the beneficiaries during the period.