Exemption to National Aluminium company Limited from the provision of Contract Labour Regulation and Abolition Act 1970 for Utkal D and Utkal E Coal Mines of NALCO at Angul Bhubaneswar from the purview of Notification No. S.O. 2063 E dated 21.06.1988

## Policy Analysis Report: Exemption under the Contract Labour (Regulation and Abolition) Act, 1970 for NALCO, Angul, Bhubaneswar **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Labour and Employment on November 2, 2022. This notification exempts the National Aluminium Company Limited (NALCO), Angul, Bhubaneswar from the applicability of a previous notification (S.O. 2063, dated June 21, 1988) regarding the employment of contract labour in specific coal-related activities. The exemption applies for a period of five years, subject to specific conditions aimed at protecting the interests of contract workmen, ensuring fair wages and benefits, and prioritizing existing workers during contract changes. The core purpose is to provide flexibility to NALCO while safeguarding the rights of contract workers. **2. Introduction:** This report provides an overview and analysis of the Ministry of Labour and Employment notification S.O. 5101(E), dated November 2, 2022, concerning an exemption granted to the National Aluminium Company Limited (NALCO), Angul, Bhubaneswar, under the Contract Labour (Regulation and Abolition) Act, 1970. The analysis is based solely on the provided text of the notification. **3. Policy Overview:** * This is an amendment granting an exemption to an existing policy related to contract labour. * **Core Objective(s):** The primary objective, inferred from the text, is to temporarily exempt NALCO, Angul, Bhubaneswar, from certain provisions related to contract labour in coal-related activities while simultaneously ensuring the protection of the rights and benefits of the contract workers employed in those activities. **4. Background and Rationale:** This notification acts as an amendment to a prior policy (S.O. 2063, dated June 21, 1988). The reason for this specific amendment is to provide NALCO with an exemption from the restrictions imposed by the earlier notification concerning contract labour in coal-related operations (raising of coal, coal loading and unloading and overburden removal and earth cutting), within the company's Angul and Bhubaneswar locations. The rationale is likely based on specific operational needs or circumstances within NALCO that warrant a temporary exemption, balanced by the need to maintain worker welfare standards. **5. Key Provisions / Changes:** This notification amends the existing policy by: * **Granting an Exemption:** Exempting NALCO, Angul, Bhubaneswar from notification S.O. 2063, dated June 21, 1988, specifically in respect to items 1 to 3 in the schedule of that notification, which pertain to certain coal mining works. * **Duration:** This exemption is granted for a period of five years from the date of the notification's publication in the Official Gazette. * **Imposing Conditions:** The exemption is subject to the following conditions designed to protect contract worker rights: * Protection of workers' interests in the mentioned works. * Payment of wages and benefits as per the recommendations of the High Powered Committee appointed by Coal India Limited and the rates notified by Coal India Limited. * Inspection rights for the Central Advisory Contract Labour Board to ensure compliance. * Preference for existing contract workmen in employment during contract changes, subject to satisfactory performance. * Extension of High Powered Committee wage rates to workers in ancillary jobs (excluding raising/selling of coal). * Assurance of High Powered Committee wage payments (including six-monthly increases), as well as other benefits according to the Mines Act, 1952, by both the contractor and the Principal Employer. * Coverage of contract workers under the Payment of Gratuity Act, 1972. * Provision of bonus and leave with wages to contract workers as per the Mines Act, 1952. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this notification are: * **National Aluminium Company Limited (NALCO), Angul, Bhubaneswar:** As the recipient of the exemption, NALCO benefits from the flexibility afforded by the policy. * **Contract Labour employed by NALCO in Angul and Bhubaneswar:** These workers are directly affected by the conditions attached to the exemption, specifically regarding wages, benefits, and employment preference. * **Contractors providing labour to NALCO:** Contractors are responsible for ensuring compliance with the conditions of the exemption, particularly the wage and benefit requirements. * **Central Advisory Contract Labour Board:** This board is responsible for inspecting NALCO to ensure compliance with the exemption conditions. * **Coal India Limited & Ministry of Coal:** Impacted by the reference to their High Powered Committee and wage rate notifications, creating a dependency on their information. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Central Advisory Contract Labour Board is explicitly responsible for inspecting NALCO to ensure compliance. NALCO's management is responsible for ensuring preference is given to existing workers when contracts change. Contractors are responsible for ensuring the payment of HPC wages and benefits according to the Mines Act, 1952. * **Timelines/Procedures:** The exemption is valid for five years from the date of publication in the Official Gazette. Wages should be paid according to the High Powered Committee rates, which increase every six months. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this exemption are: * **Operational Flexibility for NALCO:** Enabling NALCO to manage its coal-related operations more efficiently, potentially leading to increased productivity or cost savings. * **Protection of Contract Worker Rights:** Ensuring that contract workers receive fair wages, benefits, and employment security despite the exemption from certain regulations. The specific emphasis on Coal India Limited wage rates and the Mines Act demonstrates an effort to ensure industry-standard compensation and working conditions. * **Maintenance of Labor Standards:** The Central Advisory Contract Labour Board's inspection authority and the conditions related to wages and benefits aim to maintain labor standards within NALCO's operations. **9. Conclusion:** The Ministry of Labour and Employment's notification S.O. 5101(E) grants NALCO, Angul, Bhubaneswar, a five-year exemption from certain provisions of the Contract Labour (Regulation and Abolition) Act, 1970 concerning coal-related activities. This exemption is subject to stringent conditions designed to protect the rights and welfare of contract workers. The notification reflects a balance between providing operational flexibility to NALCO and safeguarding the interests of its workforce. This will allow NALCO a certain degree of operational flexibility, while ensuring that workers' rights and benefits are adequately protected through the stipulated conditions.

Key Entities Referenced