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Journalism of Courage
It may yet turn out to be an election gimmick but for now it’s giving Corporate India nightmares. Armed with a legislation passed by the Assembly earlier this year, the Congress-led Democratic Front government in Maharashtra is fine-tuning a move to introduce reservation for backward classes in the private sector.
A formal Government Resolution is expected by the end of June or early July.
The Maharashtra State Public Services (Reservations for Scheduled Castes, Scheduled Tribes, De-notified Tribes, Nomadic Tribes, Special Backward Category and Other Backward Classes) Act, was passed by the Legislature earlier this year.
It makes reservation mandatory in all government and semi-government bodies, education institutions and companies, which have been given aid in the form of government land at concessional rates or any other monetary concessions by the government or is recognised, licensed, supervised or controlled by the government.
The definition is so wide that most industries in the state fall under its ambit.
Expectedly, the corporate world is not happy. ‘‘Merit should be the prime motivator for recruitment,’’said Anand Mahindra, president, Confederation of Indian Industry (CII). ‘‘Anything that is mandatorily and unilaterally enforced will be counter productive.’’
‘‘Unlike the public sector, the private sector does not work in a sheltered environment,’’ said Deepak Gupta, Executive Director, Kotak Bank. ‘‘Hiring on the basis of reservation will only increase costs to the company.’’
Gupta said corporates should decide whether they want to hire someone or not. ‘‘Forcing reservations on us will make it difficult to maintain our competitive edge,’’ he added.
Ashank Desai, Chairman of Mastek Limited, an infotech company, said the government should not interfere with the private sector at all.
For now, it seems like water off a duck’s back — especially with polls looming in September. ‘‘The issue was discussed widely at a joint select committee of the legislature and also in the cabinet,’’ said Minister of State for General Administration Vijay Gavit. ‘‘The decision was taken to give a better opportunity to weaker sections of the society.’’
The committee included legislators from ruling and opposition parties. It cleared the legislation, which was passed by the legislature unanimously on the last day of the winter session in January.
The General Administration Department (GAD) has not decided on the percentage of vacancies to be reserved by the private sector, the staff levels that would come under reservation, and the nature of the supervisory authority.
Gavit said the modalities would be worked out after a dialogue with industry representatives and in consultation with the state industry department.
However, there are a few who believe in the merits of reservation. Welcoming the move, V.N. Dhoot, chairman, Videocon Group said: ’’I think there should be at least 15-20 per cent reservations in the private sector.’’
Mahindra, however, agreed that corporate India is always ready to accept anything that comes as part of a voluntary effort at trying to ensure more opportunities for the weaker sections.
