Plan for private sector quota may be shelved

NEW DELHI: 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. 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.