ULBs in Andhra to collect labour cess at building approval phase

Direction follows the recommendations of the vigilance department which found that several establishments evaded payment of cess meant for labour welfare.

Published: 25th June 2021 08:13 AM  |   Last Updated: 25th June 2021 04:35 PM   |  A+A-

apartments, buildings, houses

Image of residential buildings in Vijayawada used for representational purpose. (Photo | EPS)

By Express News Service

VIJAYAWADA: The commissioner and director of municipal administration (CDMA) has directed all the commissioners of municipal corporations and municipalities to collect applicable labour cess from establishments at the time of approval of the building or construction work to avoid evasion of the same. The direction follows the recommendations of the vigilance and enforcement department which had inspected and found that several establishments evaded payment of the cess to be used for the welfare of labour.

According to a circular issued by CDMA MM Nayak, an inspection in 2019 had revealed that 46 industries and firms in Chittoor district have evaded the payment of labour cess to the tune of Rs 55.31 crore in violation of building and other construction workers regulation of employment and conditions of service acts and rules in place for regulation of employment conditions of construction workers, who are identified as one of the most vulnerable groups. In other districts too, several companies are learnt to have made partial or no cess payments. In this context, the municipal administration department has issued instructions, “ collect applicable labour cess from the establishments at the time of approval of the building or other construction work by implementing the Rule 4( 4) of the Cess Rules, 1999, as directed by the government and furnish action taken report.”

MoU with HCL foundation 

The municipal administration and urban development department has issued an order permitting Connect to Andhra, planning department (government of AP) to enter into an MoU with HCL Foundation for improving infrastructure facilities in 106 municipal schools identified Vijayawada in a phased manner. The department, on Thursday, has also issued revised administrative sanction for physical infrastructure in the PMAY- housing for all initiative. While Rs 1,295.10 crore has been accorded for phase 1 covering 37 ULBs and 45 Locations with 1,11,088 units, Rs 1,513.79 cr has been sanctioned for phase-II covering 56 ULBs and 80 locations with 1,18,920 unit. A fresh sanction for Rs 420.61 cr has been issued for new works. 


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