http://www.hindustantimes.com/Industry-cool-towards-UPA-proposal-on-Dalit-units/Article1-748636.aspx
Industry cool towards UPA proposal on Dalit units
HT Correspondent, Hindustan Times
Lucknow, September 21, 2011
The Congress-led UPA government's recent bid to make it statutorily
mandatory for 4% of its annual purchases to be made from units run by
Dalits and tribals is being seen as a poll sop to woo the Dalit and
tribal votebank just ahead of assembly polls in Uttar Pradesh.
Dalits own a
sizeable number of enterprises in the state where 21.15% of the total
population is Scheduled Castes (SCs).
And if the Centre implements the quota policy for micro, small and
medium enterprises (MSMEs) before the state assembly polls, the move
may benefit the Congress party.
Together, SCs and STs account for 10 % of the total MSMEs in the state.
The move has, however, not gone down well with industry in the state.
"The government should act as a facilitator and if it really intends
to help Dalit and tribal entrepreneurs, it should simplify rules and
procedures," said DS Verma, executive director of the Indian
Industries Association.
Awadh Chamber of Commerce general secretary Chandra Kumar Chhabra said
industry would be comfortable as long as the quota was capped at 4%.
"There is every possibility that that percentage may go up, as parties
vie with each other to offer more to these sections," he said.
Economists, however, see the move promoting entrepreneurship among
weaker sections of society.
"This kind of positive discrimination will help Dalit and tribal
entrepreneurs, no doubt," Giri Institute for Developmental Studies
director, AK Singh said.'
But he cautioned against operational problems, such as bogus units
sprouting up to reap the benefits.
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