MNC fury: Maharashtra may spike private job quota

MUMBAI: The Maharashtra government, alarmed by fierce opposition from multinational companies, is all set to ditch its newly formulated job reservation policy for the private sector.
The Maharashtra State Public Services Act, that was notified last week, promises blanket reservation for several sections of society in the private sector. As per the Act, 51% jobs shall be reserved for scheduled castes, scheduled tribes, denotified tribes, nomadic tribes and OBCs, irrespective of the sector the employer is in.
The Act will be applicable to “institutes or industries, which have been given, either prior to coming into force of this Act or thereafter, aid in the form of government land at concessional rates or any other monetary concessions by the government, or are recognised, licensed, supervised or controlled by the government.�
The decision has angered the corporate sector, especially multinational companies. Sources said that three of them threatened to reconsider their investment plans if the state goes ahead with its plan. First to fire a salvo at the government was a Korean white good giant. The company, which has recently invested Rs 500 crore in its manufacturing plant near Pune, sought a clarification on the issue. The company is about to start recruitment for its Pune plant.
“We were not informed about the state’s job reservation policy when the MoU was signed. The new conditions are unacceptable,� the company is reported to have told the government. Two other entities, a UK-based large engineering firm and subsidiary of a US company, have also aired their concerns to the state government.
When a senior state functionary tried to pacify these companies by promising that the new policy won’t be implemented in totality, the representative of the Korean company is understood to have asked, �Why frame rules which are not to be executed?�
“The message was clear. They want unequivocal withdrawal of the policy,� a highly placed government official told ET. “It was implicitly clear that these companies may even walk out of the state in case the policy in not withdrawn,� he added.
And now, after playing with fire, the state machinery is on the job to formulate a face-saving formula. “Fortunately, rules for the policy are yet to be formulated. At best, we can think of making the policy mandatory only for all the state owned PSUs,� a senior politician confided to ET.