ESIC chief opposes privatisation push, backs social security code

The Employees' State Insurance Corporation (ESIC) has pushed back against suggestions to privatise the state-run social security scheme, signalling institutional resistance to fundamental structural changes. ESIC Director General Ashok Kumar Singh outlined the organisation's position, emphasising that the existing framework remains vital for worker protection across India.

Singh contended that implementing the Code on Social Security, rather than dismantling public provision, represents the appropriate path forward for expanding the scheme's reach. The new code framework is expected to bring more workers into the ESIC ambit, particularly among informal sector employees who currently lack adequate coverage.

The ESIC operates as one of India's principal social security mechanisms, providing medical and cash benefits to workers and their dependents. The corporation covers approximately 40 million workers across the country and manages a substantial welfare corpus. Privatisation proposals have periodically surfaced within policy discussions, drawing concerns from labour advocates and worker organisations.

The stance reflects broader debates within India's labour policy framework regarding the balance between public and private provision of social security benefits. Implementation of the Code on Social Security, which consolidates multiple labour laws, is expected to provide clearer operational guidelines for the ESIC and potentially streamline administrative processes to accommodate greater worker participation.