Exemption from labour laws in Guj for new industrial units

The Gujarat government on

Saturday announced exemption from certain labour laws for 1,200 days to firms that want to set up new units in the state in order to "boost economic activities" post-lockdown.

Earlier, governments of Uttar Pradesh and Madhya Pradesh had offered concessions from labour regulations in their states to attract investment.

The government also announced relief amid coronavirus pandemic for industries which use natural gas supplied by Gujarat Gas, a subsidiary of state-owned Gujarat State Petroleum Corporation, by giving more time to pay gas bills.

"Companies in Gujarat, India and abroad willing to bring new projects and set up new units in the state will be freed from labour laws for 1,200 days, except those related to the minimum wages and industrial safety," said Ashwani Kumar, secretary to Chief Minister Vijay Rupani.

 

Local MSME owners willing to set up new units will also get this exemption, he said.

In a tweet, Chief Minister's Office said that this step was being taken to "boost economic activities and generate employment in post-lockdown period", but the exemption will not apply to "provisions for minimum wages, safety and compensation in case of accidents".

Kumar also said that Micro, Small and Medium Scale Enterprises such as ceramic units in Morbi in Saurashtra and units in south Gujarat which depend on gas supplied by Gujarat Gas can now pay their bills due in the second half of March by May 10, and bills due till May 10 can be paid in fortnightly installmentstill June 23.

The government also waived Minimum Offtake Guarantee (minimum fixed charge for gas) for these industries from April to June, as they are unable to use the gas due to coronavirus lockdown, Kumar said.

Interest on late payment of gas bills for these units was also reduced to 10 per cent from 18 per cent, he said.