Udupi: Min Santosh Lad proposes Rs 1 fuel cess to fund Rs 15 lac health cover for 1.3 crore workers


Daijiworld Media Network – Udupi

Udupi, Oct 11: Karnataka labour minister Santosh Lad has announced that he will urge chief minister Siddaramaiah to impose a cess of Rs 1 per litre on petrol and diesel, aimed at creating a dedicated healthcare fund for workers in the unorganised sector.

Appealing to MLAs across party lines to support the initiative, Lad said the proposed fuel cess could generate approximately Rs 2,500 crore annually for the Labour Department.

“This will help us issue a health card that covers hospital bills up to Rs 15 lac for 1.3 crore workers and their families,” Lad said.

 

Describing the initiative as a first-of-its-kind scheme in the country for those outside the organised sector, he pointed out that previous governments had failed to provide adequate health security to this segment of the workforce.

If approved, the health card scheme could be rolled out within the next three to four months, he added.

Lad also stressed the need to revise compensation norms for accidental deaths among unorganised workers, noting that the existing relief amount of Rs 1 lac is “meagre” and in urgent need of reform.

Speaking on the welfare of gig economy workers, Lad said the state has already passed the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, and is currently in the process of framing rules for its implementation. Once notified, the government will collect a 1–2% platform-transaction fee to finance social security benefits for gig workers, he stated.

Additionally, Lad highlighted the recent passage of the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, which seeks to extend welfare coverage to those working in the film and cultural sectors, including make-up artists, stunt performers, daily-wage earners, and spot boys.

  

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Comment on this article

  • Charles D'Mello, Pangala

    Sat, Oct 11 2025

    Concept is good but 15 lacs is too much. I even will not get that insurance by paying 60000 rupees per year.

    DisAgree Agree Reply Report Abuse

  • Alwyn, Kudla

    Sat, Oct 11 2025

    Many times free welfare it makes people lazy and dependent on welfare. Yes it is required for those who is handicapped or disabled and aged but if everyone take unwanted advantage then it’s waste of tax payer money

    DisAgree [2] Agree [2] Reply Report Abuse

  • Eva, Kirem

    Sat, Oct 11 2025

    The best concept. In one of the gulf countries Patan's are hard working people with very little salary. This community collects one Riyal a month from every Patan. When death occures easily they dispatch body with dignity and little help to the family too. This is the power of one rupee. As per bagya concept a survey is required to see benificieries how much they use and how much they sell to the APL card holders!

    DisAgree [1] Agree [1] Reply Report Abuse

  • Roy D Souza, Bangalore/Mumbai

    Sat, Oct 11 2025

    As per the statistics provided by the Petroleum Planning and Analysis Cell under the Govt. of India, Ministry of Petroleum and Natural Gas, - Annual Sales of Petrol (MS - Motor Spirit). excluding HSD - High Speed Diesel in Karnataka in 2024-25 is 3,050,000 metric tons (1 ton is = 1333 litres of petrol.). This works out to approx, 406 crores per year and when it is charged we have no choice but pay and give the ruling Government one more score of revenue. Fact is how much really will go for healthcare of unorganized sector or for another scam or some mafia in insurance or medical service provider. Where is the accountability for all these collections

    DisAgree [1] Agree [2] Reply Report Abuse

  • Shyam Rai, Mangalore

    Sat, Oct 11 2025

    The prince of Dubai had invited some minister to play E20 in Dubai.

    DisAgree Agree Reply Report Abuse

  • Nithin, Mangalore

    Sat, Oct 11 2025

    It's a great concept, if people can buy the overpriced E20 petrol then I'm sure they wouldn't mind spending additional Rs.1 which'll benefit fellow Indians belonging to lower income families.

    DisAgree [8] Agree [20] Reply Report Abuse

  • Roland, Mangalore

    Sat, Oct 11 2025

    Nobody is forced to take the bag yas. If people avoid receiving the bagyas then it can help save money for the government and then everyone can get free healthcare. Most of the beneficiary’s of the bagyas are people who can afford to pay for the bagyas.

    DisAgree [1] Agree [34] Reply Report Abuse

  • Ferns, Mangalore

    Sat, Oct 11 2025

    Stop all the free bagyas and then provide free healthcare to everyone..

    DisAgree [14] Agree [35] Reply Report Abuse


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Title: Udupi: Min Santosh Lad proposes Rs 1 fuel cess to fund Rs 15 lac health cover for 1.3 crore workers



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