It seems the industrial units of Punjab do not pay heed to showcause notices and legal proceedings by the Employees State Insurance Corporation (ESIC) for not depositing ESI contributions with the corporation. |
The corporation has initiated legal proceedings against 2,000 industrial units in Punjab, of which 971 are from Ludhiana alone. |
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However, even after the introduction of a scheme of amnesty to withdraw cases, less than 80 employers have come forward. |
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Speaking to Business Standard, G C Jena, regional director of ESIC, said: "They should have come forward. Now we are making a lot of effort to generate awareness so that they get the benefits of the scheme." |
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He said employers needed to be aware of the benefits of this and should not try to compare these with other mediclaim schemes by private companies, as the extent of coverage was much more at an affordable price in the case of the ESIC. |
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The scheme of amnesty offers to withdraw cases filed against employers, subject to various conditions. |
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To avail themselves of the scheme, which is there till January 31, 2007, employers have to submit an affidavit stating they will be regular in complying with the provisions of the ESI Act and also have to pay the damages that accrued during the period of default. |
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Regarding the high incidence of such cases from Ludhiana, Jena attributed this to the heavy concentration of industrial units here. |
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The corporation, on average, gets annual revenue of Rs 70 crore from this region and 485,000 employees are covered under the schemes. |
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