New Delhi : The Central Public Works Department (CPWD) contractors today demanded withdrawal of a circular which makes it mandatory for them to upload the entire labour details at the time of placing tenders.
“This circular is impractical because contractors first place the tender and if it wins the bid, then makes arrangements by engaging the labour and material and not the other way round,” said R K Pabbi, President of Electrical Contractor's Association.
The contractors demanded that registration under Employee's State Insurance Corporation (ESIC), Employees' Provident Fund Organisation (EPFO), Service Tax, Labour Welfare Board and Labour Licence should not be made mandatory as all contractors are not covered under the said Acts.
They maintained that the service tax should be paid directly by CPWD, the department being the end user instead of reimbursing the amount to the contractors, terming it as “a difficult process”, stating that in the end contractors do not get the reimbursement.
Single window mechanism may be provided for the provision of various Acts applicable to the contractors facilitating them to get the work done without delay, the contractors demanded.
“Similarly, employer share of EPF and ESI should be paid by CPWD directly instead of reimbursing to the contractor,” Pabbi said.
The CPWD Contractor's Association informed that they will be holding a dharna against the provisions of the recently issued circular and submit a memorandum of their demands to the Director General of CPWD and the Urban Development Minister.
A petition by the Association is also being filed in High Court in this regard.