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Major reform process of EPFO, ESIC started: Modi

PM says plan to upgrade ESIC facilities for medical education and specialised tertiary care also in offing

Narendra Modi
Narendra Modi
BS Reporter Chennai
Last Updated : Feb 02 2016 | 7:16 PM IST
Centre has initiated efforts to reform EPFO and ESIC for benefit of organised sector employees and its plans to extend ESIC benefits are part of a larger scheme to upgrade facilities for medical education and specialised tertiary care, Prime Minister Narendra Modi said today.

Modi was speaking after inagurating a newly-constructed building of ESIC medical college and hospital in Coimbatore, Tamil Nadu. The project cost is about Rs 580 crore.

"Our plans to expand ESIC facilities, indeed the establishment of this medical college itself, is part of a larger plan to upgrade the facilities for medical education and specialised tertiary care," he said.

A Universal Account Number (UAN) has so far been allotted to over 6 crore sector workers, enabling portability of their EPF accounts. Further, the government proposes to expand coverage and offer additional facilities and services through the ESIC, he said.

The coverage of ESI scheme has been proposed to expand the coverage from only the industrial and commercial clusters within a district to the entire district by end March, said the Prime Minister. He noted, since August last year, the scheme has been extended to construction workers.

The Prime Minister said the Centre is committed to the development of a generous and comprehensive social safety net for all workers.

For the over 45 crore unorganised sector workers and in addition to the RSBY health insurance program, started the Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, and the Atal Pension Yojana to provide life and accident insurance.

"This commitment to the builders of modern India comes from the firm belief that a 'Swasth and Samridh Shramik will make a Samridh Rashtra'," said the Prime Minister.

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He noted, the ESI Scheme today is implemented across 830 centers in 34 States and Union Territories. It covers over 7 lakh factories and establishments across the country and benefits 2 crore workers and about 8 crore beneficiaries. In Tamil Nadu, the scheme has over 85,000 participating employers and over 28 lakh insured persons, with Coimbatore itself having nearly 27,000 employers. It is available in 31 districts of Tamil Nadu.

ESIC proposes to expand coverage by complementing its own services with Public Private Partnerships. Apart from cancer detection, cardiology treatment, and dialysis, the Corporation also proposes to offer in a phased manner pathological and X-ray facilities in all its dispensaries through PPPs. Besides allopathic treatment, ESIC hospitals will also provide AYUSH treatment in a phased manner.

The Prime Minister said the government has taken a number of path-breaking steps for the welfare of workforce of our country. From September 2014, we have revised the Employee Provident Fund Organisation (EPFO) pension to a minimum of 1000 rupees per month.

The wage ceiling for EPF benefits has been raised from Rs 6500 to 15,000 rupees. An EPFO Mobile App has been launched for easier access to its services for both workers and employers. The Bonus Act has been amended to increase the ceilings for eligibility and bonus payable to Rs 21,000 and 7000 rupees per month respectively.

A Shram Suvidha Portal has been created for online services related to 16 labor laws, including administering a process of transparent and random inspections of businesses. A LIN number has been issued to nearly one million employers, enabling them to process single online filings on eight labour laws.

The services offered by ESIC and EPFO have been integrated with the e-Bis portal of the Department of Industrial Policy and Promotion to promote ease of business and limit transaction costs. Further, it is proposed to promulgate new EPFO and ESIC Acts providing more choice, increased coverage among workers and employers, and better and expanded range of services for organised sector workers.

He added, the Ministry is simplifying central labour laws by consolidating the existing 44 laws into four labour codes. Namely, on wages, industrial relations, safety and security, and health. This would considerably increase the ease of doing business and facilitate job creation, without compromising on the genuine protections and rights available for workers. We are progressing on the reform path by building consensus on these reforms through extensive stakeholder consultations with employers, worker's representatives, and state governments.

"We have also approved a scheme for up-gradation of existing State and Central Government medical colleges to increase MBBS seats. Through this, we hope to increase 10,000 MBBS seats and support the colleges with funds for equipment and infrastructure," said the Prime Minister.

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First Published: Feb 02 2016 | 6:40 PM IST

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