The Hindu Business Line : Incentives for improvement

This has reference to the article "Breaking the city-planning myths" (Business Line, November 28) of the Vision 2020 series: The remedy suggested by the author of imposing a fine if companies add to the workforce without providing what he calls `minimum quality dwelling' will just not work. Many companies would go for more indirect employment, as is already happening with reputed companies in and around Mumbai. Those employed in many of the big companies are not on the pay roll of the company they work for but on the payroll of another firm located perhaps in a distant suburb.

Second, some companies would prefer to pay the fine and get away from the obligation of providing accommodation. Perhaps some attractive tax incentives to both the employees as well the employers for constructing houses for use of employees working, say, in a specified industrial area or a given postal district, will work better than levying a fine.

Narendra M. Apte

Mumbai

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