The Government is working on a positive draft that seeks to bring development benefits such as health care, sick benefits, maternity benefits, and life insurance to 362 million workers in the unorganized sector earning less than Rs. 6500 a month. The Arjun Sengupta Commission submitted a new and modified proposal that is expected to cost USD 1.65 billion in the first year (.2% of GDP) and USD 5.7 billion in the fifth year (.48% of GDP). It also plans to provide a provident fund returning 10% and an old age pension of Rs. 200 a month for below the poverty line
The proposal seeks to deliver the services through the vast network of post offices and governed through a new bureaucracy called the National Social Security Board. The commission has negotiated special deals with the
Corporation and General Insurance Corporation for the target crowd. It also sought to create a hierarchy with new bureaucracies at the State level and worker Facilitation Centers.
There are two other proposals one from the Labor Ministry and another from the National Advisory Council that steers the Government and which the Opposition uncharitably calls a "Super Cabinet" or run by a "Super Prime Minister." The idea of providing such facilities to the working poor is fantastic in concept but flawed in implementation proposal.