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Madhya Pradesh CM Shivraj Singh Chouhan announces changes in the labour laws of the state to boost economy effected due to coronavirus

Saying that his government wants to convert this challenge thrown in front of the nation into an opportunity, Shivraj Singh Chouhan proposed reforms in the labour laws in the state

Madhya Pradesh chief minister Shivraj Singh Chouhan held a press briefing today and proposed reforms in labour laws, through Facebook Live. He said that the coronavirus pandemic has adversely affected the economy and widespread efforts are being made to bring the system back on track said the chief minister while proposing the sweeping reforms in the labour law in the state.

Agriculture Reforms In MP

Saying that his government wants to convert this challenge thrown in front of the nation into an opportunity, Shivraj Singh Chouhan reiterated the reforms to the Agriculture Produce Marketing Committee (APMC) structure in the state. Farmers in MP will now be allowed to sell their crops to any individual or entity willing to buy them, without having to approach a mandi.

He announced that exporters, traders, food processors, etc, can open a private mandi and can buy the agriculture produce by visiting the farmer’s land or house. The amendment in the mandi rules was aimed at giving freedom to the farmers to sell their produce at a better price, and on their own choice.

The traders or bulk buyers can negotiate prices directly with the farmers. Of course, the farmers will still be allowed to sell in the mandis, which will fetch them government-approved minimum support prices (MSP). The state has also provided for the creation of private mandis which are fairly broad-based in definition.

Shivraj Singh Chouhan announces a new model of labor reform in the state

Under the new scheme, the government has taken steps to eliminate red tape and Inspector Raj from factories. Now no factory inspection will be done without reason. The owners have been given permission to extend the shift of the workers in the factories and give up to 72 hours of overtime in a week. However, in lieu of this, the factory owner will also have to pay the employees the required overtime.

To compensate for the loss of small shopkeepers, the government has extended the time limit to keep shops opened. Now in the areas where the government will approve the opening of shops, shopkeepers will be able to open their shops from 6 am to 12 pm.

Key amendment made in the labor law

  • Process of registration and licensing for setting up a new business firm, which earlier took 30 days would be now completed in 1 day. If the concerned official doesn’t issue the license in one day, fine will be collected from him and will be given to the trader as a compensation.
  • The factory license renewal will be in 10 years instead of every year.
  • The license which now valid for one calendar year under the Contract Labor Act will be made available for the entire contract period
  • Registration of new factories will now be completely online
  • Any startup industry has to be registered only once
  • The shift to working in factories can be 12 hours instead of eight
  • Extention of the shift of the workers in the factories can go up to 72 hours in a week.
  • However, in lieu of this, the factory owner will also have to pay the employees the required overtime.
  • Under the new labour reform, there will be no inspection in the firms employing less than 50 workers and in the small and medium enterprises, the inspection will take place only with the permission of the labour commissioner or in case of complaint.

Shivraj Singh Chouhan announces one register one return policy

MP CM said that the older requisite to fill 61 registers and 13 returns will be abolished and only one register and the return has been brought in place. Even the self-certification will be enough to file the return. He added that the move will help reduce the red tape and will help the businesses to run smoothly. Shivraj Singh Chouhan also said that this will boost the Ease of Doing Business.

Industry body FICCI welcomed the long-awaited reforms saying that FICCI lauds Shivraj Singh Chouhan’s labour reforms.

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“This will boost economic activities and attract investments. It will lead to holistic industrial growth supporting the workforce and creating job opportunities,” FICCI said in a tweet citing Madhya Pradesh chair Dinesh Patidar.

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