Buoyed by the positive response of Union Finance Minister Jaswant Singh, Labour Minister Sahib Singh Verma appears confident of getting Rs 1,000 crore (Rs 10 billion) token money from the finance ministry as the government's contribution for implementing the pension scheme for workers of the unorganised sector.'
Verma strongly pleaded for allocation of Rs 1,000 crore to the labour ministry to extend social security cover to workers in the informal sector.
Although Singh did not make a formal commitment, he made it clear that the issue would be taken care of once the labour ministry forwarded the proposed social security Bill to the finance ministry.
In a 45-minute discussion, the labour minister also demanded an allocation of Rs 116 crore (Rs 1.16 billion) from the finance ministry to carry out the scheme of insurance cover to agriculture workers.
The scheme is expected to give insurance cover to agriculture workers all over the country.
Ministry officials say the demand for additional funds for social security to workers in the informal sector is essential to the Bill, which will come up in the Budget session of Parliament. Obviously, the finance minister gave clear hints that all these issues would be taken up with the Planning Commission before making a final decision.
A meeting of the Planning Commission to clinch the issue is scheduled to be held on Friday.
Officials confirmed that though there were reservations among officials of the finance ministry over the allocation of additional funds to the labour ministry, Jaswant Singh is believed to have dismissed it in his inimitable style by saying, "We cannot say no to the labour ministry."
Despite Singh's assurance, it was clear that the issues would be decided at a later stage.
Officials of the labour ministry were pleasantly surprised as the finance minister did not grudge even Verma's demand for the waiver of Customs and excise to give incentives to private vocational institutes for improving the training skills of workers in the organised sector.
Referring to the tax exemption extended to institutes in rural areas, Verma strongly pleaded for a similar exemption to be extended to city-based institutes imparting vocational training to workers. The minister's argument was that since these institutes helped workers to compete at the international standard, the exemption be given to them.
Officials said the finance minister had given positive indications about discussing the issue with officials and taking a final view.
