NEW DELHI: Prime Minister Narendra Modi unveiled a labour reforms package on Thursday, a measure expected to attract investors for his ‘Make in India’ campaign.
Often dubbed the second generation reforms, lack of movement on this issue in the last 10 years has often been cited as the biggest hindrance in attracting investment to the manufacturing sector.
With the BJP winning a majority in the Centre under Modi’s leadership, it was expected that the second generation reforms that were stuck due to lack of political consensus would now be pushed through.
Now that elections to two key states, Haryana and Maharashtra, are out of the way and predicted to be coming to BJP’s kitty, the Prime Minister seemed ready take on labour reforms by which some of the moribund laws will be repealed.
Stressing on the need for labour reform, the PM said, “Shramev Jayate has the same power as Satyamev Jayate for the development of our nation.”
A transparent portal encompassing all the features announced will be operated by four Central organisations: Chief Labour Commissioner, Directorate General of Mines Safety, Employees’ Provident Fund and Employees’ State Insurance Corporation.
Apart from providing a Universal Account Number, the scheme on one hand envisages raising the limit for coverage from salary levels of `6,500-`15,000 per month; and on the other “protects’’ small unit employing not more than 40 people from the rigours of labour legislation.