Plan for Private Sector Quota May be Shelved
The government has abandoned its populist plan to extend job quotas to the private sector, giving up a scheme which had alarmed the industry, for a more pragmatic approach marked by a renewed push to locate job-intensive units in backward regions.
The prime minister's panel on affirmative action in private sector has zeroed in on fiscal incentives for industry as a way to create jobs in backward districts.
It is argued that job windows created by manufacturing units in these pockets would benefit dalits and tribals as they form the bulk of population there, thus meeting the objective of socio-economic empowerment that quota in the private sector was supposed to accomplish.
The argument, however, is not passing muster even with insiders who see it as merely reinventing the wheel. The development marks the quota rhetoric coming full circle, with what was promised by the ruling coalition as its 'Common Minimum Programme' turning from a bugbear of industry to possible gift bag of concessions for business houses. It was one of the demands made by the industry chambers in the interaction with the PM's panel.
Extending the frontiers of quota had always looked a long shot because of the constitutional obstacles as well as the all-pervasive fear that it could hurt growth. But its advocacy caused alarm among private business during the months when the government appeared to prize quota over other ways to gain popular support.
Pro-quota sections within the government are not happy about the change, as they see the plan to guide industry to backward areas as resurrection of an old proposal which has not borne fruit. Another suggestion to study the issue to improve SC/ST employment is seen as mere hogwash. Sources said Department of Industrial Policy and Promotion is likely to set up a ‘group of officers’ to study the issue.
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The Department of Industrial Policy and Promotion (DIPP) is likely to set up a 'group of officers' to study the issue of offering fiscal incentives to industry as a way to attract them to backward districts.
DIPP is the nodal body coordinating for the PM's panel headed by principal secretary T K A Nair, which took over the sensitive issue from ministry of social justice, in what marked the first indication that quota in private sector was off the government menu.
With the thrust of the government being on skill development of SCs/STs, the progress on giving the ITIs to private sector to improve the employability of passouts is not impressive. The Union labour ministry is to discuss with chief secretaries ways to stamp out the roadblocks in the rolling out of 'ITI adoption scheme'.
Sources said ITIs could be jittery of private-public partnership transferring their fate to private parties. The chambers have entered into an agreement to upgrade teaching in ITIs to improve the employability of passouts.
What is also off is caste profiling of private sector workforce, with most of the business houses refusing to undertake the exercise for fear of attracting problems. The government had asked the private sector to give a caste profile of its employees to find out the extent of participation of SCs/STs in their fold.
The voluntary action by industries to implement affirmative action plan had come to stave off any coercive government bid to legislative on reservation. The UPA government had struck a high pitch on the issue in its first two years, with even threats of bringing in a law if the industry did not oblige.
Opposed to the quotas, voluntary or otherwise, the chambers agreed to devise its affirmative action plan based on skill and entrepreneurship development among SCs/STs while also taking over ITIs to improve education to enhance the employability.
It is finally boiling down to skill development. ASSOCHAM, CII and FICCI have been asked to set up skill development centres in backward areas with high population of Dalits and tribals. The ministry of social justice has identified around 145 blocks with high Dalit population. While the associations have made a beginning, government has asked them to scale up their operations with time.
The CII, with 590 member companies having adopted its code of conduct on the affirmative action, has informed the PM's panel that 1,572 persons have been covered by entrepreneurship development scheme and 23,612 persons have received training for enhancing their employability. Also, 531 scholarships have been given to students for higher education in top educational institutions.
ASSOCHAM has informed that it is conducting training courses and 365 SCs/STs have benefited from the entrepreneurship development scheme while over 1,000 have gained from coaching centres.
The prime minister's panel on affirmative action in private sector has zeroed in on fiscal incentives for industry as a way to create jobs in backward districts.
It is argued that job windows created by manufacturing units in these pockets would benefit dalits and tribals as they form the bulk of population there, thus meeting the objective of socio-economic empowerment that quota in the private sector was supposed to accomplish.
The argument, however, is not passing muster even with insiders who see it as merely reinventing the wheel. The development marks the quota rhetoric coming full circle, with what was promised by the ruling coalition as its 'Common Minimum Programme' turning from a bugbear of industry to possible gift bag of concessions for business houses. It was one of the demands made by the industry chambers in the interaction with the PM's panel.
Extending the frontiers of quota had always looked a long shot because of the constitutional obstacles as well as the all-pervasive fear that it could hurt growth. But its advocacy caused alarm among private business during the months when the government appeared to prize quota over other ways to gain popular support.
Pro-quota sections within the government are not happy about the change, as they see the plan to guide industry to backward areas as resurrection of an old proposal which has not borne fruit. Another suggestion to study the issue to improve SC/ST employment is seen as mere hogwash. Sources said Department of Industrial Policy and Promotion is likely to set up a ‘group of officers’ to study the issue.
------------------------
The Department of Industrial Policy and Promotion (DIPP) is likely to set up a 'group of officers' to study the issue of offering fiscal incentives to industry as a way to attract them to backward districts.
DIPP is the nodal body coordinating for the PM's panel headed by principal secretary T K A Nair, which took over the sensitive issue from ministry of social justice, in what marked the first indication that quota in private sector was off the government menu.
With the thrust of the government being on skill development of SCs/STs, the progress on giving the ITIs to private sector to improve the employability of passouts is not impressive. The Union labour ministry is to discuss with chief secretaries ways to stamp out the roadblocks in the rolling out of 'ITI adoption scheme'.
Sources said ITIs could be jittery of private-public partnership transferring their fate to private parties. The chambers have entered into an agreement to upgrade teaching in ITIs to improve the employability of passouts.
What is also off is caste profiling of private sector workforce, with most of the business houses refusing to undertake the exercise for fear of attracting problems. The government had asked the private sector to give a caste profile of its employees to find out the extent of participation of SCs/STs in their fold.
The voluntary action by industries to implement affirmative action plan had come to stave off any coercive government bid to legislative on reservation. The UPA government had struck a high pitch on the issue in its first two years, with even threats of bringing in a law if the industry did not oblige.
Opposed to the quotas, voluntary or otherwise, the chambers agreed to devise its affirmative action plan based on skill and entrepreneurship development among SCs/STs while also taking over ITIs to improve education to enhance the employability.
It is finally boiling down to skill development. ASSOCHAM, CII and FICCI have been asked to set up skill development centres in backward areas with high population of Dalits and tribals. The ministry of social justice has identified around 145 blocks with high Dalit population. While the associations have made a beginning, government has asked them to scale up their operations with time.
The CII, with 590 member companies having adopted its code of conduct on the affirmative action, has informed the PM's panel that 1,572 persons have been covered by entrepreneurship development scheme and 23,612 persons have received training for enhancing their employability. Also, 531 scholarships have been given to students for higher education in top educational institutions.
ASSOCHAM has informed that it is conducting training courses and 365 SCs/STs have benefited from the entrepreneurship development scheme while over 1,000 have gained from coaching centres.
