Govt plans to use Rs 20K cr cess pool for workers' welfare

To provide pension cover to construction workers, the Centre plans to utilise Rs 20,000 crore collected by various states as cess from real estate developers.
"Close to Rs 20,000 crore are lying idle in the cess pool which currently are managed and controlled by various state governments," Labour Secretary Shankar Aggarwal said at an event organised by PHD Chamber today.
"With its repatriation to the centre pool, it could be better and suitably utilised for the benefits of the children of construction workers, for support of their education and community services. It can also be used to give them entitlement for social security in terms of PF facility," PHD Chamber quoted Aggarwal as saying in a statement.

The Labour Ministry has advanced consultation process with various state governments, because the cess is collected by them but was hardly utilised for the intended purpose, he said.
Under the Building and Other Construction Workers' Welfare Cess Act, realty developers are required to pay cess of 1 per cent of the total cost of construction incurred by the employer. The cess is levied for augmenting the resources of the Building and Other Constructions Workers Welfare Board.
"The Labour Ministry is working out a solution to take control of the cess collected through real estate developers in the last couple of years for the welfare of construction workers, estimated to the tune of about Rs 20,000 crore," Aggarwal said.

He also said that the government would consider the suggestion of using the cess fund as construction workers' contribution toward provident fund facility since such workers are very poor to make their mandatory contribution to the fund.
He also said that there is a need to create 5-7 million jobs each year as these many people become ready to join the workforce every year.