Monday, November 7, 2011

[ZESTCaste] Government Mulls Dalit Venture Capital Fund

http://blogs.wsj.com/indiarealtime/2011/11/07/government-mulls-dalit-venture-capital-fund/

November 7, 2011, 11:18 AM IST

Government Mulls Dalit Venture Capital Fund

By Tripti Lahiri

Almost a year ago, Dalit businessmen met with Planning Commission
Deputy Chairman Montek Singh Ahluwalia to talk about how the
government could support entrepreneurs from India's historically
disadvantaged low-caste groups.

This weekend, the Dalit Indian Chamber of Commerce and Industry
gathered again in Delhi to celebrate one result of that meeting. Last
week, India's Cabinet approved a policy for public procurement that
asks government departments to source 4% of their total purchases from
businesses run by people from India's most disadvantaged communities.
These include both Dalits and members of tribal communities.

At the Saturday gathering, which also saw the creation of a Delhi
chapter of the chamber, the minister who lobbied for the procurement
policy change said the government was now considering creating a
"Dalit venture capital fund." Dalit entrepreneurs say one of the major
hurdles they face is a lack of financing options.

"It wouldn't be right to say more," Minister for Social Justice and
Empowerment Mukul Wasnik told the gathering. "But I hope we'll see it
reach fruition."

Later Mr. Wasnik told India Real Time that it wasn't enough to
recommend that a certain amount of procurement come from Dalit
businesses. The policy allows for ministries to source from other
businesses if Dalit firms don't participate in bids.

"It will be our responsibility to make it a success as well," said Mr.
Wasnik. "What else can be done?"

The minister said that India was looking to other countries for ideas,
such as South Africa's black economic empowerment program.

In South Africa, firms that want to apply for public contracts must
present independent verification that they are following prescribed
empowerment policies.

"Empowerment was basically coming in the public sector," said Mr.
Wasnik, referring to affirmative action quotas for government jobs.
"Gradually the private sector needs to start empowering."

Mr. Wasnik wasn't the only Congress party politician present. General
Secretary Digvijay Singh was there too. That marked a change from last
year's festivities, when the Planning Commission's Montek Singh
Ahluwalia, a civil servant, was the chief guest.

India is months away from elections in Uttar Pradesh — a state
presently run by Chief Minister Mayawati Kumari of the Dalit-supported
Bahujan Samaj Party.

In their remarks, both politicians mentioned the Congress party many
times, as well as Prime Minister Manmohan Singh and Congress president
Sonia Gandhi specifically, praising them for their focus on Dalit
empowerment.

But Mr. Wasnik denied that the public procurement policy was approved
with an eye on the coming elections.

"We didn't keep this for these elections," he said. "Elections come in
some part of the country every six months. This is our social
commitment."


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