Current Queries

1. 1. The Building and other Construction workers
(Regulation of Employment and conditions of
Service) Act, 1996
THE TAMIL NADU BUILDING AND OTHER
CONSTRUCTION WORKERS (CONDITIONS OF
EMPLOYMENT AND MISC PROVISIONS) ACT 1984
THE BUILDING AND OTHER CONSTRUCTIONS
WORKERS’ WELFARE CESS ACT 1996
A Presentation by BHEL PSSR
2. The Building and other Construction workers
(Regulation of Employment and conditions of
Service) Central Rules, 1998

2. Genesis and Background
[1/6]
 North Chennai Thermal Power Project Stage II
2X600 MW work was awarded to BHEL PSSR on
EPC basis.
 Customer M/s TNEB deducted 0.3% of the total
value of Civil Works from our running bills towards
Cess under TN Building & Construction Workers
Cess Rules
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3. Genesis and Background [2/6]
 The above recovery to the tune of 1,56,78,537/- as on 31.03.2011
which was protested by BHEL PSSR and Customer TNEB
Remitted the above amount to Welfare Board
 At RINL Vizag, where BHEL PSSR is executing
the Erection & Commissioning of 1 X 330 TPH
Boiler (UNIT – 6) & 1 X 67.5 Turbo Generator
(UNIT – 5), a notice was received from AP
Labour Authorities through Customer for
remittance of Cess @ 1% under
BOCW(RE&CS) Act 1996.
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4. Genesis and Background [3/6]
 The above Notice was Challenged in the HC
of AP by BHEL PSSR since the
BOCW(RE&CS)Act 1996 does not apply to
the Factory ( RINL is an Existing Factory
under Factories Act 1946)
 The HC of AP Granted Stay on the
enforcement of BOCW(RE&CS)Act 1996 and
BOCW Welfare Cess Act 1996.
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5. Genesis and Background [4/6]
 At Malwa Site where BHEL PSSR is awarded the
work erection and commissioning of 2X 600 MW
Thermal Power Project 1% of Cess is being
recovered to the tune of Rs1.69 Crs
 At North Chennai & Vallur Sites Inspector Of
Factories issued Notice to BHEL PSSR and its Sub-
Contractors for Registration under BOCW Act.
 All Our Sub-Contractors have registered under
the Act at North Chennai &Vallur Sites
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6. Genesis and Background [5/6]
 All our Sub- Contractors have registered.
 Govt of AP Labour Authorities Challenged the single judge
order on RINL Vizag case where it was then held by HC that
BOCW Act is not applicable at RINL Vizag since it is a factory
 In the Writ Appeal , the bench held that BOCW act is
applicable even Factories Act is in force at RINL Vizag and held
cess is payable by the contractor
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7. Current Queries and apprehensions
1. PS HQ GUIDELINES ON BOCW ISSUE STIPULATES THAT CESS
IS APPLICABLE ONLY FOR CIVIL WORKS WHERE AS
DEMAND BY LABOUR AUTHORITIES IS BASED ON THE ENTIRE
WORK ORDER VALUE INCLUDING SUPPLY AND SERVICE
PORTION.
2. WHETHER TO FILE A REVIEW PETITION IN THE HC OF AP ? –
TO BE DECIDED
3. MOST INDUSTRIAL PROJECTS ARE WITH IN THE EXISTING
PREMISES OF A FACTORY. NEW PROJECTS ON EXPANSION
NEAR THE EXISTING POWER STATIONS
4. THE RAMIFICATION OF THE DECISION BY HC OF AP BENCH
WILL ERODE OUR PROFIT SINCE CESS WILL BE DEDUCTED
FROM OUR BILLS ON THE ENTIRE WORK ORDER VALUE
5. A PRAGMATIC APPROACH TO THE ISSUE IS THE NEED OF
THE HOUR SINCE IT IS AFFECTING OUR OPEARTIONS AT PS ,
ISG AND IS SECTORS
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8. THANK YOU
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