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Home National

Karnataka’s Game-Changer: Fuel Cess to Empower 1.3 Crore Unorganised Workers

October 15, 2025
in National, Politics
Reading Time: 3 min

Karnataka’s Labour Minister, Santosh S. Lad, revealed an exciting development for approximately 1.3 crore workers in the state’s unorganised sectors. These workers are set to benefit from a new initiative funded by a proposed ₹1 cess on petrol and diesel.

During a press interaction in Yadgir on October 15, following a meeting with officials, Minister Lad elaborated on the department’s vision. He explained that the primary goal is to channel the funds from this fuel cess directly into providing enhanced government benefits for unorganised workers. The proposal has already been submitted to Chief Minister Siddaramaiah and awaits Cabinet approval. Should it pass, it promises a significant uplift for these crucial members of Karnataka’s workforce.

A key part of this plan involves the Labour Department issuing smart cards to 101 distinct categories of labourers who follow hereditary professions. These cards aren’t just for identification; they come with substantial benefits. Families of workers who suffer death or permanent disability while on duty will receive ₹1 lakh in compensation, along with ₹50,000 to cover hospital expenses.

Minister Lad highlighted that transport sector workers, in particular, are slated to receive even greater advantages than other unorganised sectors. Their families will be eligible for a generous ₹5 lakh compensation in cases of death or permanent disability. The Labour Department is actively registering eligible beneficiaries, and impressive progress has already been made, with 10 lakh labourers having signed up so far.

In a move to ensure fairness and efficiency, the Minister also mentioned that efforts are underway to purge fraudulent construction labour membership cards, with 28 lakh such cards already deleted. Furthermore, the department has extended a helping hand to the next generation, providing scholarships to approximately 13 lakh students from construction labour families.

Minister Lad Addresses Alleged Threat Calls to Priyank Kharge

When questioned about the alleged threat calls received by Rural Development and Panchayat Raj Minister Priyank Kharge, following his outspoken criticism of the RSS, Mr. Lad responded without surprise. He stated, “Those who were responsible for the assassination of Mahatma Gandhi will naturally resort to threatening individuals who speak out against them. Personally, I haven’t received any such threats yet. Being in public life means we must be prepared to face such challenges.”

The Minister also took the opportunity to critique Bihar Chief Minister Nitish Kumar, questioning his 11-year tenure for failing to improve the living standards of Bihar’s populace, noting the state’s mere ₹60,000 per capita income. He challenged the BJP and Mr. Kumar on their contributions to Bihar’s citizens and specifically criticized Prime Minister Narendra Modi for distributing ₹10,000 to 75 lakh women in Bihar, especially given the BJP’s opposition to similar guarantee schemes in Karnataka.

Furthermore, the Labour Minister highlighted a perceived bias by the Central Government, asserting that states where the BJP or its allies are in power, such as Andhra Pradesh and Gujarat, receive preferential treatment and larger grants. He cited the establishment of Google’s AI hub in Andhra Pradesh as an example of this favoritism.

The event also saw the presence of MLAs Channareddy Patil Tunnur and Raja Venugopal Naik, MLC Tippannapa Kamaknur, among other dignitaries.

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