Registration Name : eINDIA2011/AN/185
Project Category : eGov::Best Government to Business Initiative of the Year
Project Name : Mahashramm
Details of Applicant :
Name : Kavita Gupta
Address : Principal Secretary, Labour Department 620, Annexe Building Mantralaya
City : Mumbai
State : Maharashtra
Country : INDIA
Zip Code : 400020
Details of Project/Implementing Agency :
Name of Organisation : Labour Department, Government of Maharashtra
Address : Principal Secretary, Labour Department,620, Annexe Building,Mantralaya
City : Mumbai
State : Maharashtra
Country : INDIA
Zip Code : 400020
Name of the head of Organisation : Dr. Kavita Gupta
Website : http://mahashramm.gov.in/
Brief description of the programme/project/Initiative :
Mumbai is the commercial capital of India with a large network of businesses. The businesses are equally well developed all over Maharashtra. There are nearly 20 lakh shops and establishments registered in Maharashtra under the Bombay Shops and Establishments Act, 1948. In addition to this, there are nearly 40,000 factories licensed in Maharashtra under the Factory Act, 1948. In addition to this, there are nearly 15 million businesses in the unorganized sector. These businesses which fall within the definition of scope of establishment require to be registered under the Shops and Establishments Act, 1948. Also, the factories, whether hazardous, chemical or any other category, require to obtain licenses under the Factories Act. Further, a major challenge is to ensure the registration of the large number of businesses in the unorganized sector. In order the expand businesses and create enabling environment for their working, it is necessary to facilitate the interface with the Labour department in a manner which provides transparency and lessens the burden of inspection on them. The present project is designed to provide businesses an online interface with the Labour department so that they submit online license applications and the renewal of license applications. Under the Factories Act, 1948, the factories can also apply for exemptions under various provisions in the labour laws in an online manner. In addition to this, the shops and establishments can submit their registration applications online and also apply for various exemptions online. Through the e-interface created under this project, the businesses would also be enabled to file their monthly and annual returns online. The businesses covered under the Shops and Establishments Act, and the Factories Act would also be able to get all the information regarding the Labour department online from the Mahashramm website www.mahashramm.gov.in. They can also get the process flows, which define detailed procedures on how to apply for licenses, register businesses and seek for various exemptions. In addition to this, under this project the Labour Department displays the Citizens Charter enumerating the services which would be available to the citizens, including the businesses and the time lines within which those services will be delivered. This Citizens Charter is linked with the MIS system of the department to generate alerts in case time line defined in the Citizens Charter is not met with by the department at any level. Accountability of the respective officers is also thereby fixed. On the other hand, based on online returns filed by the businesses, the Labour department can monitor the implementation of labour laws by various businesses. Automatic alerts are generated in case of non-compliances, for instance, delay in payments to the workers, non payments of minimum wages, non payment of bonuses, inadequate compliances of safety provisions etc. When automatic alerts are generated, compliances are insisted upon through reminders and only when, in spite of 3 reminders, compliances are not obtained, the inspectors of the Labour department are required to visit the establishments. Thus, inspection becomes more transparent and less burdensome on the employers. The project has therefore, been widely welcomed by all the businesses in terms of creating an easy interface with the department and in providing them a more transparent environment, which is compliance based rather than enforcement based. As a part of the project, the Labour department has mapped all the processes which take place while interfacing with businesses. As part of the project these 300 processes were mapped and Business Process Reengineering done to minimize delays and steps so as to reduce errors. This project, which is based on PPP model also incentivises the total service provider to register even businesses which at present not registered, many of which are in the unorganized sector. The incentive is provided to the TSP by way of generating user charges for him for the returns and applications which are filed by the businesses. With more businesses getting registered or obtaining licenses, the businesses would also be able to e-connect with the Labour department and get familiarized with the labour laws, including health and safety conditions. The implementation of health and safety conditions at workplace is greatly in the interest of businesses because accidents and incidences are extremely costly to the businesses and not only result in loss of mandays but also result in a huge financial outgo in terms of payment of workmenâ€™s compensation, treatment of the injured person and loss of goodwill and disrepute caused to the businesses in the market. The project therefore, envisages ? Facility for submitting of online licenses and renewal of licenses applications under the Factories Act, 1948 including facility of paying required fees online. ? Facility of submission of online registration applications under the Shops And Establishments Act, 1948 including facility of paying required fees online. ? Facility of applying for exemptions iunder various labour provisions online ? Facility to the factories and businesses for submitting annual and monthly returns online to the factories and businesses ? Linking Citizens Charter with the service deliveries and fixing accountability on the officers for ensuring deliver of services within fixed timelines. In this project, the businesses can interface in an online manner through Common Service Centres (CSCs) which further improves the viability of CSC businesses. Also payment of licenses fee can also be met in an online manner and license copies can also be obtained from the CSCs. As a part of the project, pioneering amendments have been made for the State of Maharashtra for the first time in the history of labour laws in India to mandate payment of wages, bonus, gratuity, HRA through cheques or bank account transfers only. For this, the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Maharashtra Workmenâ€™s Minimum House Rent Allowance Act, 1983, the Payment of Bonus Act, 1965, and the Maharashtra Gratuity Rules were suitably amended. The mandate also ensured that the businesses can pay the wages easily into the bank accounts of the labourers without getting into the hassle of cash management at the time of the labour payments. Also to facilitate easy withdrawal of money by the labourers, the network of business correspondents is being created within a radius of 2 kms from the workplace of the labourers, thus, also generating opportunities for new businesses. The project has been been showcased as one of the good practices under â€˜New Technologies available to Labour administration and labour inspectionâ€™ in the 100th Session of International Labour Conference, 2011 at International Labor office, Geneva. In the Indian State of Maharashtra, the Labour Department is partnering with an Indian IT services firm and local banks to create a novel labour management system (LMS). This web-based system is designed to improve several services for employers and workers, including more efficient license applications and renewalsâ€¦ The LMS was also designed to streamline the stateâ€™s labour machinery by consolidating information gathered from labour inspections and generating automatic alerts to help monitor labour law compliance. ..It is hoped that the introduction of the system will also help improve interdepartmental information sharing and coordination, while enabling more manageable and systematic analysis of the labour market in Maharashtra. The system is being piloted in Thane District for four months in early 2011, with the intention of rolling it out across the entire state over a period of two-and-a-half years. http://www.ilo.org/ilc/ILCSessions/100thSession/reports/reports-submitted/WCMS_153918/lang–en/index.htm The project also got rave reviews from all the cross sections of the stakeholders some of which are mentioned below: This is a very innovative innovation by the Labour Department. It creates a huge amount of transparency in interface with the Labour Dept. It will facilitate industry in Maharashtra to engage and seek answers to their issues – A great example of creative thought and flawless execution. Well done to the team on my behalf. It is indeed very well received by the industry in Maharashtra Leena Nair, Chairperson, Maharashtra State Council and Vice President HR, South Asia, Unilever Ltd. â€œLMS will definitely help the industries to simplify their jobs as submission of various forms, filing of returns, registration, renewals of licenses etc. can be done online. This will reduce unproductive wastage of time and energy at our end. This will help reduce Inspector Raj and re-tapism to great extent. We welcome the Mahashramm LMS projectâ€ â€“ Shrikant Bapat, Chairman, Thane Manufacturersâ€™ Association I am happy to note that Govt. of Maharashtra recently launched a Mahashram Scheme. This is a good initiative for the betterment of Employees and Employer in Maharashtra. This is a unique and Pioneer attempt to facilitate the lives of stakeholders of Maharashtra .This will definitely help Employers to get various information online and also help in filing of e-return. I hope this simplified process will help to maintain transparency through this Scheme and also save valuable time and energy of Employer. M.R. Khambete, President, Thane Small Scale Industries Association â€˜COSIA congratulates the Labour Department for launching Mahashramm project, yet another progressive initiative by Government of Maharashtra.. â€˜Transparency and tackingâ€™ is the key to eliminate middlemen and corrupt practices. Elimination of human interface will certainly improve efficiency and will result in good governanceâ€™ â€“ Purushottam Agwan, Hon. General Secretary, Chamber of Small Industries Associations. The facility to apply for Registration and renewal online is a welcome step taken by Government of Maharashtra. This has significantly reduced the time and effort spent for applying and processing of application.- Sandeep.N.Singh, Propriter, Sai Enterprises The project received a lot of media coverage given its potential to demystify the hitherto complex labour laws and make the interaction of businesses and labour with the department hassle free. As an illustration, one of the excerpts is given below: http://www.thehindubusinessline.in/bline/2010/08/16/stories/2010081651971500.htm In an effort to bring in labour into the banking fold, the Maharashtra Government has launched a labour management system called â€˜Mahashramm.This public-private partnership, is aimed at bringing two crore labour in the State, both in the organised and the unorganised sector, under the banking net. Under this project, the labour working in the organised and the unorganised sector will get free biometric authenticated wage cards. With this PPP, there would be no financial burden on the exchequer. However, the businesses would be required to pay a small service charge for the online services rendered to them. Businesses can apply and renew licences online, can file their returns and get feedback online.This scheme, through its software and automatic alerts, would ensure seamless implementation of all labour laws.
Why was the project started :
The project was started mainly with a view of creating facility and transparent environment to the businesses to operate in an environment, which provides accountability and efficient delivery of services. The project was also started in order to make inspections more transparent, targeted and efficient, so as to reduce the burden of inspections on the businesses. The re-orientation of the department to ensure compliance based monitoring, instead of enforcement based inspections is also one of the driving motives of the project. The project would give a mechanism also to bring unorganized sector businesses on board with the Labour department and therefore, provide them awareness of safety and health considerations at workplace and thereby reduce incidence rate and the accident rate. The e-interface of the unorganized sector businesses with the department would also give them knowledge of the labour laws and facilitating environments to register the businesses and file returns online. Since they would be working in a compliance driven environments, the burden of inspections on them would be minimized, while at the same time they would get an advantage of learning about best practices being undertaken by their businesses.
The overriding objective is to provide an e-interface to the businesses with the Labour department, which is smooth, hassle-free, transparent, accountable and thus improve the business environment in the State. The creation of new employment opportunities by way of the network of business correspondents which will be created for withdrawal of moneys by the labour and viabilities which will be created to the Common Service Centres, is also by no means incidental.
Target group : All shops, establishments, businesses would be in the ambit of Mahashramm, totaling to 10 million
Geographical reach : The entire State of Maharashtra
Date from which the project became operational : 13 September 2011
Is the Project still operational : YES
10 points that make the programme/project innovative?
- Â First of its kind in India and probably globally in providing e-interface of businesses with the Labour department, including applying for registration, licenses, exemptions online.
- Â Showing insistence on a compliance based system of automatic alerts and automatic reminders to businesses, in case of non-compliances of various labour laws.
- Â Operationalized through PPP mode with no financial burden on State Government
- Â Enabling registration of unregistered businesses, especially in unorganized sector by building incentives for the TSP to register uncovered businesses
- Â Online returns enable monitoring of health and safety conditions in workplaces minimizing incidence/accident rates, thereby reducing costs for businesses
- Â Linkage of services with Citizensâ€™ Charter and generation of alerts to ensure that services are delivered by the Labour Department in an accountable and timebound manner.
- Â Online submission and tracking of applications, complaints and suggestions from the businesses
- Â Creating synergies for Common Service Centres and greatly enhancing their business viability.
- Â Generating nearly 24,000 new businesses through a network of business correspondents as withdrawal facilities within a radius of 2 kms. from labour workplace.
- Â Synergising relevant labour law amendments of cheque/bank payments freeing businesses from the hassles of cash management at time of labour payments
List the 5 achievements of the programme/project?
- Facilitating the factories, shops, establishments and other businesses to interface online with the Labour department in an efficient, hassle-free and transparent manner.
- More effective monitoring of the industrial safety and health environment in order to reduce the incidence of accidents rate
- Inspections of labour machinery are more focused, targeted and efficient leading to a compliance based enforcement, rather than a prosecution based enforcement, thereby creating a more friendly environment and minimising the burden of labour inspections.
- A greater transparency and accountability through enhanced tracking ability for applications, complaints and suggestions online.
- Building synergies in terms of creating viabilities to existing businesses and CSCs and also creating new businesses.
List the 5 key challenges faced while implementing the programme/project/initiative
- Registration of the employers in the unorganized sector. Challenge met through sweep operations to identify and register employers, TSP incentivized in project mode to register uncovered employers.
- Internal resistance from the Department. Continuous orientation, training and sensitization workshops held to meet this challenge
- Resistance from the small enterprises to access cyber points to interface electronically with the Department. Challenge was met by tying up with CSCs and in the process also improving their viabilities
- Data digitization of huge legacy file based data of shops and factories posed a challenge. Challenge was met by aligning data digitization with registration and renewal processes in last quarter of the calendar year in which 90% of transactions happen. This greatly expedited the launch of the pilot as well as State-wide roll out
Operational difficulties due to extremely diverse user landscapes : the associated processes were suitably revised to accommodate all categories of users
List the 5 points how can the programme serve as a model that can be replicated or adapted by others?
- High level of involvement from the Departmental administration, including the Principal Secretary (Labour), to drive the initiative, as also the willingness of employers, businesses and Industries Department to support the project
- Methodical approach to project implementation, including amending relevant labour laws, aligning, e-interface mandates with the IT Act, BPR on each and every process as a model that can be replicated and adopted by others
- Labour Department, Government of Maharashtra is developing training material and manuals to enable replication of the model in other States.
- Leveraging the State infrastructure projects including State Data Centre, area network and Common Service Centres (CSCs) provides a model for cost optimisation and project replicability.
- The business model based on generating resources innovatively through PPP is an unique model available for replicability by others
List 5 points to elaborate on the scalability of the programme/project/initiative :
- The available services would be added upon and scaled up to include other services as demanded by businesses including the availability of labour data base and their skill sets.
- 10% businesses in the organized sector covered so far are being scaled up to cover remaining 90% businesses mostly in the unorganized sector
- Technology provided for project is modular and scalable and services under present project scope can easily be expanded by procuring additional infrastructure.
- The project can be scaled up to interface with other departments like Employment and Self Employment, Vocational Training, Industries Department etc. to exchange data and services and also to feed into the development of their policy frameworks for building capabilities.
- A biometric identification of the labour can later be utilized by the employers to mark labour attendance biometrically and also the timing of his work addressing concerns on labor attendance