In a move aimed at giving much-needed relief to workers in the unorganised sector, the Union Cabinet on Thursday approved a proposal to launch a health insurance scheme for them.

The scheme, to be formally launched on October 2, will be phase-wise implemented for BPL workers and their families, the Cabinet meeting chaired by Prime Minister Manmohan Singh decided.

The family unit size to be eligible for the scheme will be five, and it will be the responsibility of the implementing agencies to verify the eligibility of the unorganised sector workers and their family members, Information & Broadcasting Minister P R Dasmunsi said after the meeting.

The beneficiaries of the scheme will be issued smart cards for the purpose of identification. The Cabinet also approved the introduction in Parliament of the revised Unorganised Sector Workers Social Security Bill, 2007, aimed at facilitating formulation of social security schemes for workers in the sector. The Cabinet, in another decision, approved a proposal for comprehensive reform in the passport issuance system, which will called the Passport Seva Project.

As part of the project to be implemented within 19 months by the Ministry of External Affairs, 68 passport facilitation centres will be set up and the current passport offices will be used as back offices, while the front-end activities will be given to a service provider through an open bidding process.

The despatch of passports would be outsourced to India Post and a Central Printing Unit and online links with police authorities concerned would also be set up, Mr Dasmunsi said.

The service provider will be allowed to levy a fee over and above the government fee for each service so that it is able to recover its costs.

A project management unit would be set up for implementation of the passport seva project, he said,  adding that a special purpose vehicle would also be set up latter for management and supervision.