Andhra legislation on labour laws for SEZs soon

Andhra Pradesh may soon become a model state in introducing liberalised labour norms for designated areas of economic and industrial operations such as Special Economic Zones.

The state government, which has drawn up ambitious plans to set up a number of smaller SEZs across the state apart from the proposed state-level SEZ at Vizag, is in the process of formulating a legislation on labour laws tailor-made to suit the 'requirements' of SEZs.

Confirming the state government's plan here on Monday, G Vinod, minister for labour and employment, said that the enactment on special labour laws for SEZs is under active consideration.

"Investors may not come forward to start their operations in the proposed SEZs until they are guided by flexible labour norms applicable to SEZs."

While refusing to divulge any details of the said legislation, the minister, however, said that the overall welfare and interests of workers would be taken care of by the government while framing the norms.

A senior government official, when contacted, too said that the legislation for special labour norms for SEZs may become a reality soon.

Recently, the United Progressive Alliance government, under pressure from the Left, removed the clause from the SEZ Bill that was meant to give powers to the states to put in place special labour laws for SEZs.

But, as the subject is part of the concurrent list, the state government is going ahead with its plan to change the labour laws for the specified areas.

The State government is proactively pursuing the policies that will help bring investments to the state in a big way. It has already announced a new industrial policy with lots of incentives for new units including power subsidy and tax refund.

In the race for new investments, the state is expected to go all out in modifying the labour laws and in relaxing other procedural hassles.

Meanwhile, the minister said that his department has been playing a proactive role in clearing disputes between employers and workers thereby ensuring industrial peace and investor-friendly environment in the state.

Addressing the media to brief the achievements of the first year of government in office, Vinod said the department resolved 1,651 out of the 1,992 industrial disputes during the year 2004-05 with 83 per cent achievement.

He also said that the first office of the proposed Overseas Manpower Corporation to help migrant labourers working in Middle East would be set up in Dubai in a couple of months.