http://timesofindia.indiatimes.com/india/4-of-govt-purchases-will-have-to-be-from-dalit-tribal-run-firms/articleshow/10574441.cms
4% of govt purchases will have to be from dalit, tribal-run firms
Subodh Ghildiyal, TNN | Nov 2, 2011, 03.08AM IST
NEW DELHI: Ahead of its battle with dalit czarina Mayawati, the
Congress-led Centre has made it mandatory for all central bodies to
make at least 4% of their annual purchases from small scale industries
owned by dalits and tribals.
The decision, a leg up for developing entrepreneurship among SCs/STs,
came as part of the new public procurement policy cleared by the Union
Cabinet on Tuesday which mandates Union ministries/PSUs to make 20% of
their purchases from micro and small enterprises (MSEs). Of this, 20%
will be done from MSEs owned by SCs and STs.
Central purchases from MSEs is expected to be worth Rs 35,000 crore
annually, of which Rs 7,000 crore would go to SCs/STs. The proposal
was first reported by TOI on September 12.
With a clutch of assembly polls coming up, it is no coincidence that
the decision followed the sounding of campaign bugle in Uttar Pradesh
where Congress crosses swords with the formidable Mayawati and where
Rahul Gandhi has played an aggressive dalit card to corner BSP in its
home constituency. Congressmen argued the decision would position the
party stronger in its hunt for dalit votes.
Its potential is seen as significant even in Punjab which has the
country's highest ratio of dalit population as also Uttarakhand. These
states go to polls in February ahead of UP.
According to sources, the SC/ST quota in government purchases was
missing before social justice minister Mukul Wasnik stepped in. The
Centre was ready for 10% quota but Wasnik is learnt to have pushed for
quota in proportion with SC/ST population, roughly 24%. The prime
minister agreed for 20%.
The 'purchase quota' follows affirmative action in the US where 30% of
federal contracts give preference to minorities which include
African-Americans and Latinos. The idea has held a serious pull with
dalit activists who see it as an antidote to plateauing potential of
job reservation, especially with demand for quota in private sector
proving a non-starter.
JNU faculty Sukhdeo Thorat, who has worked extensively on affirmative
action, said "the market guarantees will induce and promote" the
growth of private enterprises owned by SCs/STs. He said while the
American example was good, the more relevant was Malaysian. "Malays
owned only 7% of private business, lower than Chinese and Indians,
despite being in majority. But since affirmative action was
introduced, their share in private sector has grown to almost 40%," he
said.
Congress is set to drive home its stamp on affirmative action in the
coming polls, with party general secretary Digvijay Singh, who started
'purchase quota' as CM of Madhya Pradesh, being in-charge of UP. I&B
minister Ambika Soni said the "path breaking" decision was in line
with Congress manifesto.
At the Cabinet meeting, sources said there were concerns about
"quality and technology". Union minister Jaipal Reddy asked about the
situation where dalit establishments did not meet the quality
benchmark. It was clarified the policy did not seek to relax standards
and referred to the review committee in place.
The policy, to become mandatory after three years, will exempt defence
ministry from its ambit, but mega consumers like railways are seen as
the best bet for the promotion of SC/ST units.
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