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DNA Exclusive: MMRDA to set up labour welfare fund

Penalties recovered from contractors to go to welfare fund that will aid kin of deceased and disabled labour

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Work sites are in the right of way making them subject to public scrutiny
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The Mumbai Metropolitan Region Development Authority (MMRDA) has decided to set up a labour welfare fund to provide monetary assistance to the dependents of deceased and disabled labourers engaged in the development of Metro rail corridors across the Mumbai Metropolitan Region. This financial aid will be given over and above the labourer's insurance amount. MMRDA proposes to provide up to Rs 4 lakh to the family of deceased labourers and 60 per cent of the compensation received under Workmen Compensation Act to disabled labourers. The fund will be put in place on the lines of a similar corpus created by the Delhi Metro Rail Corporation.

An official from the state urban development department told DNA, "MMRDA recovers penalties worth Rs 5 lakh from contractors after the first fatal accident, Rs 10 lakh for every mishap thereafter, Rs 1 lakh for the first grievous injury and Rs 2 lakh for every subsequent injury. Further, the contractor is entitled to pay a penalty of Rs 1 lakh for the first violation and Rs 2 lakh for subsequent violations in case there is an abnormal delay in reporting accidents or willful suppression of information about any accident or dangerous occurrence. These penalties charged under the conditions of Contract on Safety, Health and Environment will be the source for the labour welfare fund."

The MMRDA Board, at its meeting on Thursday, stressed on the need for a labour welfare fund considering there is about 118-km of Metro rail work worth Rs 36,000 crore at various stages of implementation underway across the city, said the official. Besides, the work sites are exposed to public scrutiny as the work is being executed on the right of way. "Any unsafe act or condition observed by the public further damages reputation. The establishment of labour welfare fund is in line with MMRDA's commitment to work as a safety-conscious organisation," added the officer.

PENALTY AMOUNT

  • The contractors pay MMRDA Rs 5 lakh after the first fatal accident and Rs 10 lakh for every mishap thereafter.
     
  • The first grievous injury results in a penalty of Rs 1 lakh and Rs 2 lakh thereafter.
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