BENGALURU: The Karnataka government is considering the imposition of a 50-paisa to Re 1 cess on every litre of petrol and diesel sold in the state. The aim is to generate funds for an ambitious plan – providing a Universal Health Scheme for the entire 1.8 crore below-poverty-line (BPL) cardholders.
Following the recent launch of a social security scheme for gig and transport workers, the labour department is gearing up to pitch this extensive health plan.Envisioned to cover the 1.8 crore BPL cardholders, the scheme proposes an estimated Rs 25 lakh in health and accident coverage per person.
Labour minister Santosh Lad told TOI that it will have minimal impact on consumers, stating, “While the current prices may be on the higher side, a hike of mere 50 paise to Re 1 will have no bearing on the consumers if it will help get back a coverage of Rs 25 lakh in accident and health coverage.”
The proposed cess on petrol and diesel, as per preliminary department data, is expected to generate a substantial Rs 1,200 crore to Rs 1,500 crore per year for the state government, facilitating the implementation of the health scheme.
Lad said the initial focus will be on unorganised sectors not covered by existing boards like the Karnataka State Building and Other Construction Workers Welfare Board, or the newly formed Transport Board for transport workers. “We’ve identified as many as 43 unorganised sectors in the state where there is an urgent need for social security. As a result, we are trying to identify avenues wherever possible to generate funds and provide the same,” Lad said.
The labour department is working on the proposal, with plans to submit it to the chief minister and the government in the coming weeks. Lad suggests that if the government considers extending coverage to the middle class, that option could also be explored.
Following the recent launch of a social security scheme for gig and transport workers, the labour department is gearing up to pitch this extensive health plan.Envisioned to cover the 1.8 crore BPL cardholders, the scheme proposes an estimated Rs 25 lakh in health and accident coverage per person.
Labour minister Santosh Lad told TOI that it will have minimal impact on consumers, stating, “While the current prices may be on the higher side, a hike of mere 50 paise to Re 1 will have no bearing on the consumers if it will help get back a coverage of Rs 25 lakh in accident and health coverage.”
The proposed cess on petrol and diesel, as per preliminary department data, is expected to generate a substantial Rs 1,200 crore to Rs 1,500 crore per year for the state government, facilitating the implementation of the health scheme.
Lad said the initial focus will be on unorganised sectors not covered by existing boards like the Karnataka State Building and Other Construction Workers Welfare Board, or the newly formed Transport Board for transport workers. “We’ve identified as many as 43 unorganised sectors in the state where there is an urgent need for social security. As a result, we are trying to identify avenues wherever possible to generate funds and provide the same,” Lad said.
The labour department is working on the proposal, with plans to submit it to the chief minister and the government in the coming weeks. Lad suggests that if the government considers extending coverage to the middle class, that option could also be explored.