KARACHI, Dec 5: The government has decided to establish a 'labour city' to meet the requirement of residential and other allied facilities for industrial workers so that their standard of living could be improved.

The proposed labour city is to be set up under the relevant policy of the federal government. It will be spread over an area of 300 to 1,000 acres for which the Sindh government would provide land free of cost, it is reliably learnt.

According to sources, Chief Secretary Mr Aslam Sanjrani has asked the labour secretary and member (land utilization) of the Board of Revenue to evaluate the project and identify a suitable location for the project.

The plan envisages construction of ground plus two residential flats. Two to four primary and middle/secondary schools and a vocational training centre would be established for workers' children at the project site.

The project will be financed through the workers welfare fund, established under the Workers Welfare Fund Ordinance 1971, and the fund utilization would be supervised by the provincial Workers Welfare Board.

The other facilities to be provided under the scheme include a 100-200 bedded hospital, a community and recreation centre, a shopping centre and parks. The cost of the entire project is estimated at Rs3.5 billion. It would be completed in four-five years, the sources said.

The flats would be allotted to workers on a lease basis which would not be transferable within 10 years after allotment. The monthly rent would be collected by a committee to be constituted by the provincial board.

The revenues collected under the head of rent would be spent on maintenance of the flat sites. The cost of construction and running expenses pertaining to hospital and would be borne by the Session.