ESI Corporation is eying the private colleges to increase its IPs (insured persons); that may be the reason it instists that its medical college in Odisha be in the Bhubaneswar area
July 20th, 2011
Following is from the page http://esic.nic.in/coverage.htm.
Applicability
Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .
Following is from a report in Times of India.
All educational institutions, including public, private, aided or those run by individuals, trusts and societies, and employing 20 or more persons should pay Employees State Insurance (ESI) premium for their employees, the Madras high court has ruled.
Justice K Chandru, dismissing a batch of writ petitions against the legality of a notification issued by the labour department of the Union territory of Puducherry, said: "Any establishment can be validly notified by the appropriate government to be covered by the provisions of the ESI Act."
The writ petitions were filed after the lieutenant-governor of the Union territory of Puducherry issued a notification mandating that educational institutions including public, private, aided or partially aided employees, run by individuals, trusts and societies, would be covered by the ESI Act if they employed 20 or more persons in their organisations on any day of the preceding 12 months.
Consequently, ESI sent notices to the organisations and directed them to cover their employees under the act. The ESI also followed it up with show-cause notices, and later sent prosecution notices threatening to levy damages under Section 85-B of the ESI Act. While some of the institutions paid up the amount, many of them filed writ petitions noting that the territorial administration lacked the legislative sanction to issue the notification as the Centre also could come out with such notifications.
It seems at this time Odisha government has not required private medical and education institutions be covered by ESI. But perhaps ESI would like that and therefore it is trying to put up its medical college in Bhubaneswar, where 60-70% of the state’s private colleges (engineering, management, etc.) are.
The following ad came in today’s Dharitri.
Entry Filed under: Bhubaneswar-Cuttack-Puri- Khurda area (1),ESI Medical College,ESI Medical Colleges