India Inc lukewarm to quota, Nath strikes a warning note

Corporate India on Wednesday did not share government’s enthusiasm over reservation for SCs and STs in private sector jobs, while commerce and industry minister Kamal Nath virtually threatened to invoke the legislative path for implementing it if ...


NEW DELHI: Corporate India on Wednesday did not share government’s enthusiasm over reservation for SCs and STs in private sector jobs, while commerce and industry minister Kamal Nath virtually threatened to invoke the legislative path for implementing it if the industry drags its feet.

The industry’s views were made clear at a meeting with senior government officials convened by the department of industrial policy and promotion, where chamber representatives offered to voluntarily implement affirmative action like training of people belonging to depressed sections.

“We have made it clear that we are against quotas. We are against reservation. Any move to impose this through legislation will be unfortunate,” JJ Irani, chairman of the CII affirmative action council, said after the two-hour meeting.

The private sector reticence assumes significance in the context of calls from key UPA ministers, including Ram Vilas Paswan (steel) and AR Antulay (minority affairs) for making it mandatory for the industry to reserve jobs for the socially-underprivileged.

Reacting to industry’s stand, Mr Nath said: “The legal option is always open if companies do not fulfil their commitments on affirmative action.” He said while the private sector had expressed certain reservations on implementation of the affirmative action, “it must look beyond these concerns”. The government would look at all options to strike a balance.

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Nath’s colleague Mr Antulay had said the private sector would have to provide jobs to minorities, SCs, STs and backward classes and suggested creation of an independent commission on the lines of the UPSC for the purpose. Steel minister Ram Vilas Paswan’s take was merely providing training facilities to the weaker sections by the industry was not enough and “reservation is a must”.

At the Wednesday’s meeting, chamber representatives said they would be calling on Prime Minister Manmohan Singh in this regard after six months. Mr Irani said the entire preamble of affirmative action would be on a voluntary basis and the plan of action would be submitted to the committee concerned.

The industry also agreed to have its targets monitored every year by an ombudsman, but wanted that even these should be in steps. “We have said the enterprises with employment of more than 400 should be asked to implement the code of conduct and every year this threshold should be brought down,” Assocham secretary general DS Rawat said.


The industry even offered to adopt districts with more than 40% of SC or ST population and undertake activities to promote affirmative action in public-private partnership, FICCI Secretary-general Amit Mitra said.

After the meeting, the department of industrial policy and promotion secretary, Ajay Dua, refuted suggestions that the government would take punitive action against those not complying with the plan of action.
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