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ERA fails to collect cess from contractors 10/31/2016 11:17:37 PM Ishtiyaq Ahmad Early Times Report Srinagar, Oct 31: The Economic Reconstruction Agency (ERA) has failed to collect lakhs of rupees from the contractors who have completed the projects of the company. The cess meant for the welfare of labourers is being collected under Building and Other Construction Workers' Welfare Cess Act-1996 (BOCWWCA) in J&K and it was enacted in the state in July 2007. "As per guidelines of BOCWWC Act, the contractors had to pay one percent labour cess. But violating the norms the ERA has not recovered it from the contractors who have completed the projects and surprisingly the company over the years has released payments for mega projects without collecting the said money," sources revealed. "The fact is that there are many contractors who have completed the mega projects of the agency and have not paid any cess," a contractor told Early Times. Sources said the non-adherence to the provisions of the Act has resulted in non-recovery of lakhs of rupees by the company since the enactment of the Act in 2007. Strangely, the management of the ERA has attributed the reasons for non-implementation of the provisions of Cess Act to the lack of awareness. Pertinently, cess is meant to provide labourers the safety, health and welfare measures and for other matters connected therewith. However, sources said that the cess which has been deducted from the contractors who carry out the public works of ERA and other agencies has not been utilized for the welfare of labours. "There is no confidence among contractors that the cess collected from them has been utilized for the welfare of labourers. On ground, there is no machinery or training centers to implement these so-called welfare schemes," sources said. They said the collected cess was supposed to go to a welfare board, which will work out schemes such as health insurance, training, crèches for construction workers. But on ground it is not implemented by the authorities. When contacted Chief Engineer ERA said that since he has recently joined the ERA, he has no knowledge about the issue.   Share This News with Your Friends on Social Network     Comment on this Story

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