States collect Rs 31,000 cr construction cess, spend Rs 6,800 cr

Dattatreya said cess has been levied and being collected at the rate of 1% of cost of construction

States have spent Rs 6,866 crore out of Rs 31,694 crore collected as construction cess till December 20, 2016, Parliament was informed on Monday.

"The cumulative total of the amount of cess collected by the states/UTs up to December 20, 2016, at the rate of 1 per cent of the cost of construction is Rs 31,694 crore of which Rs 6,866 crore has been spent," Labour Minister Bandaru Dattatreya stated in a written reply to the Lok Sabha.

The Building and Other Construction Workers' Welfare Cess Act, 1996, provides for 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.

The Minister said that the cess has been levied and being collected at the rate of one per cent of cost of construction as notified by the central government.

The government has enacted the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and the Building and other Construction Workers' Welfare Cess Act, 1996 to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare measures.

The State Building and Other Construction Workers' Welfare Boards of the respective states have formulated welfare schemes to provide benefits to building and other construction workers as mandated under Section 22 of the Act.

Section 22 provides for benefits including immediate assistance in case of accident; pension after 60 years of age; loans and advances for construction of a house, payment of premia for Group Insurance Scheme; financial assistance for the education of children; medical expenses for treatment of major ailments; payment of maternity benefit and other welfare measures and facilities.