Navigating ESI Codes for Rural Projects: Can We Use Hyderabad's Code for All Locations?

Dear all,

Our company is an infrastructure company, and we have recently acquired more projects in other states as well. We are in the process of obtaining an ESI Code. However, some of the projects are located in rural areas where an ESI dispensary is not available.

In Andhra Pradesh, we have projects in two different locations. We have obtained an ESI code for Hyderabad, but we do not have one for the other location. Is it possible to pay the contribution for both sites under the Hyderabad Code?

Could you please guide us on how to proceed?

S.N. Swamy

Dear all,

Our company is an infrastructure company, and we have recently acquired more projects in various states. We are in the process of obtaining an ESI Code; however, some of our projects are located in rural areas where ESI facilities are not available.

In Andhra Pradesh (A.P), we have projects in two different locations. We have obtained an ESI code for Hyderabad, but we do not have one for the other location. Can we make contributions for both sites under the HYDERABAD Code?

Could you please guide us on the appropriate steps to take?

Regards,
S.N.Swamy

Hi!

For projects in other states, you may apply for a sub-code number by providing full details of the project to the Regional Director of the concerned state (addresses are available on the website esic.nic.in/directory). Please enclose a copy of your main code coverage intimation letter. The required particulars include the name and location with postal address of the project, the name, address, and phone number of the in-charge, the nature of work being carried out, the number of employees (within and above the wage ceiling limit), where records are maintained and produced for inspection. If the accounts such as General Ledger, etc., are maintained at the Head Office or a different location, please provide details, along with any other relevant information. Upon receiving this letter, the concerned Regional Office will assign a sub-code number and a branch office for the submission of declaration forms and returns. Ensure to use the sub-code number in all correspondence, returns, and challans related to that project.

For projects within the same state as your main unit, you may write to the concerned Regional Director following similar procedures.

If any of these projects are situated in areas where the ESI Scheme is not enforced (non-implemented area), you can request an exemption for these employees under Section 88 of the Act. In most states, the government has already issued notifications exempting such employees. If there is a notification in any state, you need not apply for specific exemption for your employees; a simple intimation to the Regional Office and maintenance of a register with employee details in non-implemented areas are sufficient. For all such employees, you are required to obtain a policy under the Workmen's Compensation Act.

Failing to obtain a separate code and ensuring combined compliance may hinder employee registration under ESI in their respective areas and submission of returns to the relevant branch. This could prevent employees from accessing medical and cash benefits at their workplace.

I hope the above clarifications meet your requirements.