The Tamil Nadu government is sitting idle over Rs 3,700 crore construction labourers’ welfare fund which was generated by collecting cess from the construction industry.
On September 21, former RBI governor C Rangarajan-headed panel submitted a report recommending the Edappadi K Palaniswami government to use the fund to help workers financially and stimulate the state’s economic revival. Representatives from the construction industry and the labour fronts also echoed the same. The Madras high court had also questioned the lacklustre approach of the government in utilising the welfare fund.
But the government remains non-committal in making use of the available resources. A senior bureaucrat in the labour department said the fund is already being used, but there were “very strict guidelines laid down” by the Supreme Court in using the money. Another official also aired the same view and said the guidelines restrict them from liberal use of the fund. “When the government can give financial support of 1,000 from the welfare fund with a single order to members of the board, what stops it from enhancing the aid to Rs5,000?” said former chairman of the welfare board Ponkumar.
The welfare board had collected Rs3,746 crore through cess between December 2013 and July 2020. However, the fund was not used promptly. “With the available fund, the government can give 5,000 twice to each of construction worker in the state. It will stimulate the state’s economy,” he said.
However, the government issued orders of financial support of 1,000 along with relief kits to members who renewed their membership. The government extended the package twice, but it reached around 70% of the targeted group. “The court has passed an interim order, directing the government to cover all the registered members under the financial support scheme. But the government did not materialise the court order till date,” said Ponkumar, citing the Madurai bench of the HC’s interim order on August 6.
Credai has represented the issue and written letters to the CM, labour minister and senior bureaucrats to use the fund to build confidence among the workforce. “The fund is the industry’s contribution to the labourers’ welfare. If it used to help labourers, it will bring a lot of positivity. It will help build confidence among them and send a message that the system will take care of them in tough times,” chairman of TN unit of Credai S Sridharan said.
