Firms get land for cheap, quota must
Dr Babu Rao Varma
Former member of National BCs Commission, AP Public service commission
The Union Government started implementing the 27 per cent reservation policy for Backward Communities in 1993. In the following years, the Indian economy and society witnessed structural changes through economic reforms based on the three pillars of Liberalisation, Privatisation and Globalisation. The effect of these reforms on the backward communities has been very telling. It adversely affected even the limited opportunities for employment that existed for them in the government sector through reservation policy. As a result, this sector saw a progressive decline in employment generation. It is in this backdrop that Backward Classes have been demanding extension of reservations to the private sector.
The UPA had opened a debate on quota in private sector for SCs and STs and BCs as part of its formulation of a Common Minimum Programme. However, it did not see the light of the day. It is imperative that any scheme for reservation in private sector should include BCs too. The NDA government is showing signs of affirmative action. It should pursue the cause of quotas for SCs, STs and BCs in private sector. The PM stated recently that the reservation policy will continue. The Parliament should enact legislation for extending the quota system for SCs, STs and BCs in private sector as well.
Private Industry is not exactly the private property of industrialists, but a social property. It utilises resources created by government such as land, power and water at concessional rates, and takes tax rebates, bank finance and other infrastructural facilities at the cost of tax payers. All these resources and facilities constitute 90 to 95 per cent of the total capital value of the industry. Thus, Industry has social responsibilities and constitutional obligations to safeguard the interests of the weaker sections.
No country can progress or explore its full potential as long as the bulk of the population â?" which in our context consists of SCs, STs and BCs — is not involved in the development process. Giving reservations to them in the private sector will be one way their participation could be ensured in this process. The government, under the policy of liberalisation and opening of markets about 10 years ago, emphasised that markets should have a human face to it. If it wants reforms to succeed growth ensured, it must, as pleaded by Nobel Laureate Amartya Sen, ensure that all sections of the society got an opportunity for involvement in the reform process. Notably, architect of the Constitution Babasaheb Ambedkar was opposed to giving unrestricted economic freedom to rivate entrepreneurship in the absence of any economic security and safety tool to the benefit of the common man.
Let the Centre do it first in its firms
Anil Reddy Vennam
President, Federation of Telangana and AP Chambers of Commerce and Industry
The National Commi-ssion for Backward Classes (NCBC) has recommended that a legislation be passed under which private entities would reserve 27 per cent of their jobs for BCs. All political parties have welcomed the recommendations. The general argument is that private sector is taking many incentives from government and hence must pay back to the society.
The commission has said that while private companies are taking benefits from government, sufficient numbers of candidates from the SC, ST and BC categories are not getting entry into the private sector. It also stated that over the last decade, the private sector has added far more jobs than the government and state-owned organisations. The number of people employed in the government has fallen from 18.2 million in 2006 to 17.6 million in 2012, according to official estimates — a decline of 3.3 per cent. This compares poorly with job creation in the private sector that has added an additional 3.13 million jobs during the period- a 35.7 per cent growth from 8.77 million in 2006 to 11.9 million in 2012.
The issue of reservations for SCs, STs and BCs is long-pending. There is skepticism among the reserved categories also, which feel the purpose of making reservations, ie, to uplift the backward classes — is not really achieved. Before seeking reservations for BCs in private sector jobs, the government would do well to implement reservations in the PSUs. An RTI data showed in 2015 that in spite of 27 per cent quota in jobs for BCs, only less than 12 per cent BCs got the jobs. As of 2015, in educational institutes too, funds meant for BC students were underutilised. There was also violation in respect of faculty recruitment. When the government fails to implement the policy in the public sector, how can it demand of the private sector to reserve jobs?
Secondly, the government had, in the past, urged the private sector to take “affirmative action” to offer opportunities to backward communities and the industry responded favorably. Private companies/institutions follow their own hiring rules and methods. Any interference will affect its performance.
The recommendation of the NCBC has come at a time when the government is making efforts to improve the “Ease of Doing Business” and a positive impression gaining ground among foreign investors. Any meddling at this stage will drive away foreign investment as private sector runs for profit and not to ensure social justice. This may sound harsh, but this is the reality. The recommendation is not practical and feasible. The Centre should focus on providing educational opportunities and improving the job skills and entrepreneurship among BCs.
