Skip to main content

Labour Ministry Wants 15x Hike in Rehab Cost of Bonded Labourers

Rehabilitation cost per labour is equally borne between the Centre and the state
The labour ministry has proposed a massive increase in rehabilitation cost of bonded labourers from Rs.20,000 to up to Rs.3 lakh, a fifteen-fold jump that may cost the government dear but could benefit the BJP-led NDA regime politically as majority of the estimated one million bonded labourers in the country are Dalit farmers.
A draft note on the ministry's website for inviting comments said that henceforth the revised scheme will be centrally administered, with rehabilitation package of Rs.1 lakh per adult male beneficiary. Rehabilitation cost per labour under the scheme is equally borne between the Centre and the state and was last revised in 1999.
“For special category beneficiaries such as young chil dren, the rehabilitation assistance shall be Rs.2 lakh while for disabled people it will be Rs.3 lakh,“ the note said.
ET had last month reported that the govern ment is planning to substantially raise assistance under the scheme.
As per the proposal, Rs.1.25 lakh out of the assistance of Rs.2 lakh for special category ` people will be deposited in annuity scheme while Rs.2 lakh of the Rs.3 lakh for disabled people will be deposited in the annuity scheme.
The government currently provides a financial assistance of Rs.20,000 for rehabilitation of all kinds of bonded labourers, be it men, women, children or physically challenged people.
Bonded labour, sometimes also referred as debt bondage or debt slavery , involves a person's pledge of labour or services as security for the repayment for a debt or other obligation. The services required to repay the debt are undefined as is the duration of work, leading to huge exploitation of these labourers at the hands of their employers.
The Bonded Labour System (Abolition) Act, 1976, provided for the constitution of a vigilance committee at district and sub-divisional levels in each state and union territory for identification, release and rehabilitation of bonded labourers in the country .
Following this, the government launched a centrally sponsored scheme for rehabilitation of bonded labourers in 1978 under which assistance up to Rs.4,000 per bonded labour was provided. This was raised Rs.6,250 in 1986 and further to to Rs.10,000 in 1995 before fixing it Rs.20,000 in 1999 which is prevat alent till date.
The Economic Times, New Delhi, 22nd Sept. 2015

Comments

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...

External spillovers likely to hit India's financial system: RBI report

  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...