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About 82,000 new employees were brought within the coverage of the Employees State Insurance Corporation (ESIC) during the last financial year bringing the total number of employees covered by the Corporation to more than 70.82 lakh. This has been stated in the Annual Report of the ESIC which was adopted by the Corporation’s Board at its meeting here today. The Labour and Employment Minister, Shri K. Chandersekhar Rao chaired the meeting. The meeting was told that the expenditure on medical care has gone up to Rs. 737 crore of which the Corporation has contributed more than Rs. 620 crore. The Corporation recovered Rs. 131 crore as arrears of contribution from defaulting employers during 2003-04. Out of the total revenue of Rs. 2142 crore of the corporation, Rs. 1,381/- crore was the contribution income, whereas Rs. 513 crore accrued as interest and dividend from reserve funds. The meeting also adopted the Audited Accounts of the Corporation for the year 2003-04.
The meeting decided to reduce the rate of penal interest on delayed payment of dues to the Corporation from 15% to 12% in view of prevalent low interest rates. It also decides to open two Sub-Regional Offices at NOIDA and Varanasi in Uttar Pradesh. It was also decided to have a Model Hospital at NOIDA in place of Sahibabad. Two more Model Hospitals one at Bari Brahmna in Jammu & Kashmir and the other at Pondicherry would be set up by the Corporation soon.
The issue of enlarging the coverage of the ESI Scheme by way of its extension to all Municipal bodies, enhancing of wage limit to Rs.10,000 per month and bringing down the threshold for coverage to five employees, both in respect of factories and establishments was deferred to next meeting. Of the 40 crore strong work force in the country, 2.72 crore are in the organised sector. The ESI scheme covers only 26 per cent of the work force in the organised sector at present.
Earlier addressing the meeting, the Labour Minister Shri Chandersekhar Rao urged the ESI Corporation to take steps for full utilization of its infrastructure. He also called for improvement in medical services under the Scheme.
The tripartite meeting was attended by the Labour Secretary Shri K.M. Sahni and senior officials of the Labour Ministry and ESI Corporation besides, the representatives of employees, employers and state governments.
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