What happened: conciliation settlement ends a strike at Pakal Dul Hydroelectric Project
The Ministry of Labour & Employment stated that the industrial dispute at the Pakal Dul Hydroelectric Project, Kishtwar, Jammu and Kashmir was resolved through conciliation efforts led by the Regional Labour Commissioner (Central), Jammu under the Office of the Chief Labour Commissioner (Central). The dispute involved workers engaged by L&T Construction through subcontractors at the project site. After conciliation proceedings and dialogue between the management and workers’ representatives, an amicable settlement was reached on 13.07.2026.
The settlement ended the strike called by the Kissan Mazdoor Union, Nagseni and restored industrial peace and harmony at the project site. The settlement benefited 210 workers engaged by L&T Construction at the Pakal Dul Hydroelectric Project.
As per the government communication, the workers received terminal benefits amounting to ₹1,12,70,560 on 30.07.2026. The disbursed amount included retrenchment compensation, bonus, leave encashment, notice pay, and other admissible terminal benefits, with the aim of ensuring compliance with applicable labour laws and safeguarding statutory rights of workers.
Background and earlier position: subcontracted project employment and dispute risk
In project-based work such as hydroelectric projects, workers are often engaged through contracting and subcontracting arrangements. The government communication highlights that the dispute involved workers engaged by L&T Construction through subcontractors, creating a situation where contract-based employment can raise questions about service conditions, welfare obligations, and timely compliance with labour law requirements.