Ambarish Mukherjee

New Delhi , Feb. 10

THE Employees State Insurance Corporation (ESIC) is facing a funds crunch with a number of workers covered under the ESI schemes falling by more than 15 per cent during the past five years, according to officials in the Ministry of Labour, the administrative Ministry for the corporation.

"This has led to a considerable downward trend on the revenues of the corporation," officials said.

The total number of employees covered by ESI schemes has gone down from 83 lakh end of 1998 to 70 lakh end of 2003.

During 2003 alone, a total of 1.60 lakh workers had lost ESI cover with their incomes exceeding the ESI ceiling of Rs 6,500 gross salary. The Government has now decided to increase the salary ceiling to Rs 7,500 per month as the eligibility condition which is likely to come into effect from the next financial year.

The move to increase the ceiling will help the corporation get more funds as it will increase the number of covered workers following which the premiums received by the corporation will go up. The additional funds will be utilised for setting up model hospitals.

The ESI hospitals spread across the length and breadth of the country will also provide facilities to attendants accompanying the patient in line with those in private hospitals. "The Government is trying to work out a way by which attendants accompanying the patients could be provided free staying facilities in ESI hospitals. The plan also includes providing food, snacks, bed-sheets etc to them at nominal charges," officials said.

The Government is also planning to set up a purchase committee at the central level which would look into the expeditious purchase of equipment and drugs, officials said.

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