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.