In a very positive move, the Andhra Pradesh government has, with the support of the Union Finance Ministry, launched a pilot project to enrol construction workers in the pension scheme. Already 8 lakh workers have been registered and the government aims to cover about 25 lakh workers within two years. The scheme is being spearheaded by the Andhra Pradesh Building and Other Construction Workers` Welfare Board. This is in accordance with Section 18 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996. Under Section 22(b) of the same Act, these boards were entrusted to look after the welfare of the building and other construction workers. As per Section 18 of the Act, all states are supposed to constitute a welfare board for such workers. Many such boards have already been constituted by states, including Delhi, Haryana, Madhya Pradesh, Kerala and Tamil Nadu. These Boards are known by the names of the state followed by “Building and Other Construction Workers` Welfare Board”. Andhra Pradesh formed this board in 2007.

As per the scheme, workers between the age group of 18–50 are required to contribute Rs 100–200 per year towards their pension, with the state government providing Rs 1,000 and the centre giving a similar amount towards each worker`s pension. The scheme has been kept voluntary in nature.

The workers, in the plan, will be provided with smart cards, which will contain their details. As per the state government officials, after the age of 60, the workers can expect a pension ranging from Rs 600 to Rs 2,000. To become eligible for pension, the workers should have worked for at least 90 days in a year and should possess a certificate from the builders to this effect. The builder`s contribution towards the pension fund has been ensured by a 1% cess.