Inspired by China, The Ministry of Textiles (MoT) has launched the pilot phase of a Textile industry workers’ hostel for approximately 3,750 workers during the balance of the 12th Five Year Plan period (till 2017). Hostel facilities for migrant workers have been an ongoing demand by the industry and it is encouraging to see that the MoT is taking the initiative forward. However, consultant associated with such kinds of schemes are quick to caution the viability of the project, “We should not see it from a business point of view and being in the pilot phase it’s a kind of experiment, if it is successful, it may be enhanced further.”
The grant from MoT is limited to 50 per cent of the project cost per project subject to a ceiling of Rs. 3 crore for each worker’s hostel (dormitory) with built-up area @ 125 sq. ft. per person. The objective of the scheme is to provide safe and secure accommodation for the workforce in the vicinity of the textile parks (within 5 kilometers radius), thereby ensuring better retention of the work force and improving the productivity. On a closer examination it seems that the project stands viable only for those companies having big units in textile parks as the Project Implementing Agencies (PIAs) have not only to build the hostel, but are also responsible for maintenance of the hostel facility and support infrastructure through lease rentals/user charges (from procuring land to daily routine affairs after hostel starting).
“The scheme is also interesting for those into employee welfare and is viable for those companies only who wish to provide some benefit to their workers like low-cost dormitories. Since there are possibilities for small hostels wherein the guideline has a condition of minimum 250 workers rather than only huge capacity of 1,000 workers which is the maximum, it has value for even the smaller worker involved factories,” say industry observers. The process for land procurement and all other formalities are same irrespective of how big or small the project is; funding for both is to the tune of a maximum Rs. 3 crore (1.2 lakh per worker). “Since the Government is contributing in capital expenditure, one should take it in a broader spectrum and I don’t see any issue related to its viability,” says a company representative from Surat who has applied under this scheme.
However, there is likelihood that the success of this scheme will depend on whether workers would like to live in such dormitories where some set rules and regulation have to be followed, as it has been observed that usually workers prefer to live by their own choice; secondly how much they will have to pay for this facility, is also a decisive factor in determining the success of the project.
