The prime reason for child labour is poverty and illiteracy and government has made stringent laws and rules to ensure that the country is freed from the scourge, Labour Minister Bandaru Dattatreya said today. "I agree with the member that the main reason for child labour is poverty and illiteracy," the Minister said replying to supplementaries in Rajya Sabha. He said government has amended the law and framed rules in such a way that there are stringent punishments including enhanced jail term. The penalties have been enhanced from Rs. 10,000 to Rs. 20,000 and now increased upto Rs. 50,000. "In case of first offence of employing any child or adolescent in contravention of the Act, penalty would be imprisonment for a term not less than six months but which may extend to two years or with fine not less than Rs. 20,000, but which may extend to Rs. 50,000 or with both. "In case of a second or subsequent offence of employing any child or adolescent in contravention of the Act, the minimum imprisonment would be one year which may extend to three years," he said in a written reply. The Minister also said that in 2016, total inspections done as per information is 1,73,471, resulting in 384 prosecutions and 334 convictions. In 2015, there were 2,36,419 inspections, 1,594 prosecutions and 595 convictions, he said. On prosecutions, he said in case of violation of law, the District Magistrates have been given powers to deal with such situations and teachers and school managements can also take their help. The Minister also informed that the government has created a rehabilitation fund under the Act and in 2015-16, 59,076 children have been benefitted from the fund. He said state governments have also been asked to provide Rs. 15,000 towards rehabilitation fund that will go to the rescued children.