Eh Etnies. GOVERNMENT OF ANDHRA PRADESH i Office of the Engineer-in-Chief, Rural Water Supply & Sanitation Department, 5" Floor, C Block, Vasudha Shelters, Saipuram Chlohyj¥"'> °°! Gollapudi, Vijayawada-521 225, oe Memo. No, AEE1/DEE(T)/Implementation of levying of Labour Cess/2017, Sub: RWSBS - GA (VAE) Department - System Improvement Note No.L (C.No.1105/V&E/E1/2016) - Implementation of levying of labour cess and other pertaining to Public works - Action Taken Report called for - Reg. Ref: 1. From the General Administration (V&E) Dept., System Improvement Note No.1 (C.No.1105/V&E/E1/2016), Dt.31.03.2017. 2, U.O.Note No.48022/328/FMU-WR.II/2017, Dt.25.08.2017 of Finance (FMU.WR.II) Department. 3. Govt. Memo No.8543/RWS.II/A/2017_ Dt.06/09/2017 of PR & RD (RWS.II) Dept. The attention of all the Chief Engineers, RWS&S and the Superintending Engineer, RWS&S Circle, Chittoor is invited to the ref. 3" cited, wher the ) Government instructed to take necessary action on the recommendations on C Implementation of levying of labour cess and other pertaining to Public works and ¥f (9, fumish the action taken report to the Government. ee ‘The Government noticed that provision of Labour cess is made in some 0 estimates of the following Engineering department works against instructions. In general, Contractor, being employer, should pay labour cess for welfare of the Labour he had engaged. But, Cess provision is being made in the estimate and is deducted in the bills of the contractor, which infers that contractor is not paying any Cess for the labour welfare but the process is simple mathematical addition C wi and subtraction: GS: ‘S.No. Name of the Division ‘Amount 1 RWS&S Department, Madanapalle Rs.79,37,607/- Division, Chittoor District (List of works Enclosed) 2 RWS&S Department, —_‘Tirupati__| Rs.35,00,000/- Division, Chittoor District (List of works Enclosed) 3 RWS&S Department, Chittoor _| Rs.14,90,211/- Division, Chittoor District (List of works Enclosed) Total Rs.1,19,27,818/-As recommended by the, GA (V&E) Dept., the ENC, RWS 8S and SE, RWS8S, Chittoor is therefore requested to take necessary action on the following recommendations and furnish action taken report to Government immediately: a) to realize an amount of Rs.1,19,27,818/- (As per the estimates of the works enclosed to this memo) towards Labour cess from the engineering works of RWS Department in Chittoor Circle i.e In Madanapalle Division, Tirupathi Division and Chittoor Division. b) Seek any Government Orders pertaining to Public works, the ENC, RWS &S should invariably appraise the factual position to PW reforms wing of 1 & CAD Dept., and Works & Projects of Finance Department, enabling the Govt., to issue necessary Government orders only from PW reforms wing ‘of I & CAD Dept., with concurrence of Finance Department in order to avoid financial implications and leakages to the Govt., exchequer, ©) Reconsider the memo —No.MD/APRDC/GM/DCEII/DEE-II/DEE-7/AEE- 20/2013, Dt.10.06.2013 of CE, R &B, CRN & MD, APRDC, Hyderabad, advising not to include Labour cess in the estimates, as this implies that the amount has to be paid from the Contractor's profit. 1d) Advise to consider incorporating a clause in the agreements regarding deduction of Labour cess on the engineering works. e) Examine the aspect of differentiating the labour component during preparation of estimate itself and levying of labour cess solely on the labour component. As such the Superintending Engineer, RWS&S, Chittoor is requested to take necessary action to realize an amount of Rs.1,19,27,818/- (AS per the estimates of the works enclosed to this memo) towards Labour cess from the engineering works of RWS Department in Chittoor Circle i.e in Madanapalle Division, Tirupathi Division and Chittoor Division and submit detailed report immediately. All the Chief Engineers, RWS&S in the state are requested for their recommendations “to consider incorporating a clause in the agreements regarding deduction of Labour cess on the engineering works and on differentiating the labour component during preparation of estimate itself and levying of labour cess solely on the labour component” within a week so as to take necessary action at this end. Encl: Ref.s cited above. Sd/- K. K, Kishore Kumar Engineer-in-Chief, RWSAS, AP, Vijayawada. To The Superintending Engineer, RWS&S yee Chief Engineer-I, Il, IIT & IV RWS&S Department, Vijayawada. le Chittoor. Ift.c£.b.off . we ween ad x' File No.C.Nost643/RWS.WATI2017 RURAL DEVELOPMENT (RWS.11) DEPARTMENT. ic VRSEP 2017 . ey Hee 2 i” Eihoceover XTRMENTOF MHRA PRADESH ey, RSS ~ GA (VAE) Department ~ System Improvement Note Nol (C:No.1105/VBE/E1/2016) - Implementation of levying of labour cess and other pertaining to Public works ~ Action i ‘Taken Report called for -- Reg. Ret: From the General Administration (VBE) Dept, System Improvement Note No.l (C.No.1105/VBE/E1/2016), Dt31032017 recelved through Finance (FMU.WRI} Department vide UO.Note No.48022/326/FMU-WRIL/2017, 25.08.2017. It 5 brought to the notice of the Goverment, that provision of labour cess is made in the estinates of some following Engineering ‘works against instuctons. In general, Contactor being emplo Vet should pay labour cess for welfare of the Labourtie had engaged. Buy Cess poviskon Is belng made in the estimate and ts deducted inthe bits of the optaciog wich Ines tat contactor ls not pevng any Cars forthe bur cess i m cons Name of the OWvision RWS "8S Department, Madanspalie Divsion, | Re 79,37,607 Chittoor District L- AE RWS “BS ‘Department, Tinypal Dhision, Chittoor | 8535,00,000 ‘RWS GS Department, Chitoor Diislon, Chikoor | Rea So,217 L- Distict Teal, Re 119,27 818 ww ‘5 wecomivended by the, GA (VBE) Dept, the ENC, RWS 8S and SE, | V RWSES, Chittoor is therefore requestad to take necessary action on the folowing recommendations and fumish acton taken report to Goverment mediately: 4. ralze an amount offs.1,19,27/810/- (88 per the estimates of the x ‘works enclosed to ths memo) towards Labour cess from the ‘engineering wotks of RWS Department in Chitoor Circle en AOS Stopes Dion reget ence ce 2, Seek any Goverment Onfers pertaining to Publc work, the ENC, RWS ~pot ‘RS should invariably appraise the fectual position to PW reforms wing t Of 18 CAD Dept, and Works & Projects of Finance Department, EON enabling the Govt, to issue necessary Govemment orders only from A ‘PW reforms wing Of & CAD Dept, with concurence of Finance y Deparment in order to avoid financial implications and leakages to the xv. (Govt, exchequer. WAC} YS. Reconsider the memo No.MO/APROC/GM/DCELI/DEE-L/DEE-7/AEE 20/2013, BL10.062013 of CE, R 8B, CRN MD, APROC, Hyderabad, _advtsing not to Include Labour cess in the estimates, ag this implies ‘that the amount has to be pald from the Contractor's prof. 4. Advise t consider incomporating a clause in the agreements regardingFilo No.C.No.864/RWS.WUA1I2017 deduction of Labour cess on the engineeriag works. 5. Examine the aspect of differentiating the labour component during ‘preparation of estimate itself and levying of labour cess solely on the labour component, Further, the Engineer-in-Chief, RWSS is directed to issue necessary instructions to all the Superintending Engineers, RWS&S in the state algo SSRANTHANATH, 38(SK), O/0 (JS(PROGS)-PRERD Te The Engineer-in- Chief (I/c), RWS &S, AP, Vijayawada (we) The Superintending Engineer, RWS &S, Chittoor (we} $3 Engineerin-Chief, RAP, Vijayawada THEGACVBE) Dee, eOGRPUH 2 Bt Sal, Wi geen IIFORWARDED BY ORDER// SECTION OFFICER Signaturegalidpestaining ‘to Public We Ref:System Improvement Note ie ( {CINo.1105/VABEI2O16) received from GA(V&E) Dept., Dated: 07-03-2017. y see The Director General (Vig, & Enft.) & E.O. Principal Secretary to Government (FAC) has informed that an amount of Rs.1,19,27,818/- has been evaded towards Labour Cess from the engineering works of PR&RD (RWS) Department in Chittoor Circle vide System Improvement Note referred above ( Copy enclosed) . 2, The PR&RD (RWS) Department are requested to realize an amount of Rs.1,19,27,818/- towards evaded Labour Cess from the engineering works of PR&RD (RWS) Department in Chittoor Circle. Further the PR&RD (RWS) Department are requested to furnish the reply to the G.A(V&B) Dept. directly, under intimation to Finance Department! MUDDADA RAVICHANDRA SECRETARY TO GOVERNMENT (EXPR.) To ‘The FRARD (RWS) Dept., A.P. Secretariat, Velagapudi.(w.e) Copy to; The: General Administration (V&E) Dept. ‘SF/SCs. UEORWARDED::BY ORDER// 240 SECTION OFFICERMm Gmail Technical Dept. Thu, Oct 5, 2017 at 2:29 To: ce_rws4@ap.gov.in, ce_rws2@ap.gov.in, swsm peshi , se_rws_cttr@ap.govin, “ce_sws1@ap.gov.in" , pd_aprwssp_rws@ap.gov.in, eicrwss@gmail.com Sir, Please find the attachment. B Ret. for Implementation of Labour Cess.compross... With regards, for, Engineer-In-Chief, RWS8S Dept, Gollapudi, Vijayawada. ‘B Memo on implementation of Labour Coss pat