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CHAPTER-IV
RESERVATION
IN
EMPLOYMENT
IN
PRIVATE SECTOR:
A
CONSTITUTIONAL
JUSTIFICATION
CHAPTER-IV
RESERVATION IN EMPLOYMENT IN PRIVATE SECTOR : A
CONSTITUTIONAL JUSTIFICATION
Introduction
In the Indian economy, both the public sector and private sector have
an important placing. Both operate in almost all the sectors of the economy,
although their relative positions differ widely in different sectors.
The private sector in India includes not only the organized industrial
sector but also agriculture, small industry, trade and a great deal of activity in
housing and construction and other fields. A substantial share of the
agricultural sector, which contributes a little over one-third of our national
income and engages three-fourths of our manpower, is in private hands. The
statistics relating to the macro-aggregates makes it clear that the private sector
accounts for more than 90 per cent of the total manpower employed and about
80 per cent of the net domestic product. Thus, economic activity in the sector
is motivated primarily by profit.
Regarding reservation in Private Sector, there is a story about Shahu
Maharaj, the anti-caste non-Brahman ruler of the state of Kolhapur in the early
decades of the 20th century. The Maharajah helped one Gangaram Kamble, a
Mahar, to set up a teashop, and then after returning from hunting with his
sardars, he began the habit of stopping at the shop, and not only taking tea
himself, but forcing all'his proud high-caste Maratha companions to take tea
from the hands of a Dalit. The Maharaja’s actions symbolize the various types
of programmes of “social justice” needed to overcome the heritage of the caste
system. For it is necessary, metaphorically, for Dalits not only to have the
right to drink tea wherever they want, but also to have employment in the tea
shops, and even more important, to have the capacity to own them and freely
do business with them! And for this, state intervention is necessary.1
recently did at a large rally, “reservation in the private sector”. The issue,
however, is not a simple one.
There are, in fact, four rather different ways that oppressed communities -
such as black (African-Americans) in the. U.S. and Dalits in India - have
organized against the exploitation they have endured for centuries. One is as
political communities demanding “compensatory discrimination” programmes
from the State which in this respect is taken as representing the “whole
people”. (Reservation in India, “affirmative action” programmes in the U.S.
and special subsidies and grants in both countries are the important examples).
The second is as political communities, mobilizing to achieve political power
directly through the force of their votes and the alliances the are able to make.
(The BSP in India and the large number of black large city mayors in the U.S.
provide noteworthy examples). The third is as cultural communities seeking
to confront and change the internalized “cultural” characteristics that result
from their centuries of oppression but hamper their movement forward in the
present. (The best example here was the “million man march” organized
some ears ago in Washington D.C. by the black Muslim leader, Mr. Lousi
Farakhan, which was aimed at restoring the dignity and the family and
community position of black men). And the fourth is as economic
communities exerting pressure on companies or institutions, both to employ
more of their community and to produce the kind of products suitable to their
needs.
The question of “reservation in the private sector” has to do not only
with the first method - pressure on Central Governments - but also with the
fourth method - direct economic pressure on corporations and institutions.
This has to be understood in order for the whole issue to be seriously debated.
While some believe that “reservation in the private sector is impossible”, this
is simply wrong. Most “affirmative action” programmes in the U.S. in fact
work in the private sector. One basic reason is that there is no simplified
division between public and private. Any sector that is regulated and/ or
80 per cent of the net domestic product. Thus, economic activity in the sector
is motivated primarily by profit.
Privatization : One set of measures are meant to inject a strong dose of
impulses associated with the private sector. Towards this end nine industries,
out of the seventeen reserved for the public sector, have been earmarked for
the private sector. These include such important industries as aircraft
manufacture, air transport, ship-building, processing of non-ferrous metals,
iron and steel, generation and distribution of electricity, telephones and
telephone cables, telegraph and wireless apparatus, heavy castings and for
goings of iron and steel, heavy plants and machinery required for iron and
steel production, and for mining, and heavy electrical plant including large
hydraulic and steel turbines. Besides the government has, through, a part
disinvestment of its capital in some industries, made the private sector co
owner of these industries. Further, as laid down in the new industrial policy
the government is to shed off a number of such industries as are sick, cater to
the production of consumer goods, belong to non-strategic areas, where the
private sector has developed sufficient expertise and resources etc.4
While much of the public sector will be privatized, its own field of
operations will be drastically curtailed. The areas for the public sector will
now consist of the following: essential infrastructure goods and services;
exploration and exploitation of oil and mineral resources; technology
development and building of manufacturing capabilities in areas which are
crucial in the long-term development of the economy and where private
sector investment is inadequate, manufacture of products where strategic
considerations predominate such as defence equipment. Thus the thrust of the
policy is to permit the private sector to own and/ or manage a greater part of
the industries so far run exclusively by the government. It has the same time
restricted its area of operations to those industries which on social and
strategic grounds must remain in the government sector.
Relation between public and private sector : The rapid expansion of the
economy, has opened new opportunities for growth both for the public and
private sectors. The Second Plan had pointed out that the two sectors have to
function in unison and are to be viewed as parts of a single mechanism. This
implies simultaneous and balanced development of the two sectors. The
impact of public investment on the overall pace of expansion is profound. In
principle, the public sector competes for savings with the private sector. In
practice, however the modalities for finding investments are so different in the
two sectors that such a competition for savings is manifest in only a limited
way. In fact, a high level of public investment in infrastructure and key
industries is a pre-condition for development in the private sector. Moreover,
many private enterprises depend on the orders which flow from public activity
and their growth and profitability is directly linked to the expansion in public
sector investment.
Government policy for expansion of Private Sector : The new economic
policy (1991), incorporating changes in trade, industry, finance and fiscal
affairs, aims at the expansion of the private sector, injection of a strong dose
of competition and globalization of the economy. These together amount to a
big market-orientation of the Indian economy.
One important aspect of the new government economic policy is to
enlarge the sphere of the private sector in a big way. In the field of industries,
it has been brought about by the following measures: One is by reducing the
number of industries reserved for the public sector. Since 1956, under the Old
Industrial Policy, 17 industries have been reserved for investment by the
public sector. Private sector was, however, permitted to invest in these
industries on a selective basis. Under the new Industrial Policy, in operation
since the middle of 1991, only 8 (6 since March 1993) industries will, continue
to be reserved. Many of the now deserved industries are core industries like
iron and steel, electricity, air transport, ship-building, heavy machinery
industries such as heavy electrical plants and telecommunication cables and
instruments. Industries which continue to be reserved for the public sector are
183
in areas where security and strategic concerns predominate. The focus in the
public sector will henceforth be on strategic, hi-technology and essential
infrastructure areas.
Two, the government has also decided that it will undertake a review
of the existing portfolio of public investments, particularly in respect of
industries based on low technology, small scale and non-strategic areas,
inefficient and unproductive areas, areas with low or no social significance or
public purpose and areas where the private sector has developed sufficient
expertise and resources. This review obviously is intended to transfer these
industries to the private sector. In pursuance of the aim of expanding the
private sector, the government has also decided to offer a part of Government
shareholding in the public sector enterprises to mutual funds, financial
institutions, the general public and workers. The beginning was made by
diverting a part of the equities of selected enterprises and placing them with
mutual funds.
Definition of State (Article 12)
Article 12 defines the term “State” for the purposes of the
fundamental rights. Article 12 provides that unless the context otherwise
requires, “the State includes the Government and Parliament of India and the
Government and the Legislature of each of the State and all local or other
authorities within the territory of India or under the control of the Government
of India”. Article 12 gives an inclusive and not exhaustive definition of “the
State”. So defined “the State” includes5
(a) the Government and Parliament of India;
(b) the Government and the Legislature of each of the States;
(c) all local or other authorities within the territory of India; and
(d) all local or other authorities under the control of the Government of
India.
The first two categories include the Executive and the Legislative
organs of the Union and the State. The term ‘Government’ stands to include a
Department of the Government or any institution under the control of a
Department of the Government e.g., the Income-Tax Department6 or the
Forest Research Institute, Dehra Dun.7 The President of India, while acting in
his official capacity must be included in the term Government and be regarded
as “the State” for the purposes of Part III.8 These two categories are self-
explanatory and have not evoked any difficulty.
The question as to the interpretation of the expression “other
authorities”, was considered in detail by the Supreme Court in Rajasthan State
Electricity Board v. Mohan Lai.9
The Board was constituted under the Electricity Supply Act, 1948, as a
body corporate, by transferring the State electrical and Mechanical
Department to the Board. The Supreme Court referred to the definition of the
term "State ” in Article 12 and held that the Rajasthan State Electricity Board
was clearly an authority to which the provisions of Part III of the Constitution
were applicable. The Court observed that the expression “other authorities”
in Article 12, was wide enough to include within it every authority created by
a Statute and functioning within the territory of India or under the control of
the Government of India, and there was no reason to narrow down this
meaning in the context in which the words “other authorities” were used in
Article 12.
Rejecting the application of the principle of ejusdem generic in
interpreting the expression “other authorities” in Article 12, the Court held
that there was no common genus running through the specifically named
bodies (i.e. the executive Governments of the Union and the States, the
Legislatures of the Union and the States and local authorities), nor could those
bodies be placed in the single category on any rational basis. The Court, thus,
held that the expression “other authorities” in Article 12 would include all
constitutional or statutory authorities on whom powers were conferred by
law ”,
The majority further opined that it was not necessary that the statutory
authority to be included in the term ‘State5 under Article 12, should be
engaged in performing governmental or sovereign functions. It would be
immaterial that the statutory authority was conferred with powers for the
purpose of carrying on commercial activities. Thus, a statutory authority
having some commercial functions, would also be an authority under Article
12.10
The next significant pronouncement of the Court in regard to the
interpretation of the expression “other authorities” was in Sukhdev Singh v.
Bhagatram.11 In this case the Supreme Court, by a majority of 4 : 1, held that
the Oil and Natural Gas Commission, the Life Insurance Corporation and the
Industrial Finance Corporation were authorities within the meaning of the
10
expression “other authorities” and hence “State” under Article 12.
The question relating to the scope of the phrase “other authorities in ”
Article 12, was considered more thoroughly in Raman Dayaram She tty v.
International Airport Authority.13 The International airport Authority (IAA),
a body corporate, was constituted under International Airport Authority Act,
1971. The Chairman and members of the IAA are nominated by the Central
Government who is vested with power to terminate their appointment or to
remove them in specified circumstances. The Central Government is also
vested with power to take away the management of any airport from the IAA
and to entrust it to any other person or authority. It can give binding
directions in writing to the IAA on questions of policy. The capital needed for
carrying out its functions by the IAA is wholly provided by the Central
Government. The IAA is to manage the administration of the airports and air
navigation services which were earlier performed by the Central Government.
The IAA is vested with power to frame regulations and to provide that
contravention of certain specified regulations shall entail penal consequences.
The Court reiterated with approval the approach of Justice Mathew in
Sukhdev Singh v. Bhagatram.14 The learned Judge had held that if a body or
authority was found to be an agency or instrumentality of the Government, it
might be included in the term ‘State’ under Article 12, falling under the
expression “other authorities”. In R.D. Shetty v. I.A. Authority}5 The Court
discussed in detail various relevant factors and developed the general
propositions for determining whether an authority was an instrumentality or
agency of the Government.
Referring to the relevant provisions of the International Airport
Authority Act, 1971 whereunder the said authority was constituted, the Court,
held that the tests discussed for the determination, were satisfied by the
respondent Authority and thus observed that the International Airport
Authority was an instrumentality or agency of the Central Government and
fell within the definition of “State” under Article 12 and therefore, subjected
to the prohibitions contained in Part III of the Constitution.
The propositions developed in R.D. Shetty v. International Airport
Authority}6 Case were followed in Som Prakash Rekhi v. Union of India}1
And were culled out in the form of test to determine as to when a
corporation could be said to be an instrumentality or agency of the
Government.
In Som Prakash Rekhi v. Union of India,18 the facts briefly were that
the petitioner Som Prakash, was employed as a clerk in the Burmah Shell Oil
Storage Limited and retired after qualifying for a pension in 1973. The
undertaking of the Burmah Shell was taken over under the Bu'rmah Shell
(Acquisition of Undertakings in India) Act, 1976 and was vested in the Bharat
Petroleum Corporation Limited, which became the statutory successor of the
petitioner’s employer. His pensionary rights, such as he had, therefore,,
became payable from the Corporation.
The Supreme Court held that the Bharat Petroleum Corporation,
though a Government Company registered under the Companies Act, by virtue
of the various provisions of the Burmah Shell (Acquisition of Undertakings in
India) Act, 1976, was transformed into an instrumentality of the Central
Government with a strong statutory flavour super added and clear indicia of
power to make it an “authority" falling under the expression State in Article
12.
In Som Prakash v. Union of India,19 it was held that the expression
“other authorities” in Article 12, would include not only a statutory body but
also a non-statutory body like a government company if it was found that the
body or authority was an agency or instrumentality of the Government.
The question regarding the status of a non-statutory body came
before the Supreme Court in Ajay Hasia v. Khalid Mujib. In this case, the
question was whether the Regional Engineering College, Srinagar, sponsored
by the Government of India, established, administered and managed by a
Society, registered under the Jammu and Kashmir Registration of Societies
Act, 1898, was included within the term “State” under Article 12. The Society
is empowered to conduct its affairs by rules framed by it with the approval of
the Government of Jammu and Kashmir and the Central Government. The
money for running the College is provided by the State and Central
Governments. The State Government with the approval of the Central
Government, is empowered to take such action and to issue such directions, in
matters relating to the working of the College. In case of mismanagement of
the affairs, the State Government is empowered with the prior approval of the
Central Government to take over the administration and assets of the College.
The general superintendence, direction and control of the affairs of the society
and its income and property is vested in the Board of Governors. The Board
consists, inter alia, of the Chief Minister of the State as its Chairman and
nominees of the Central and State Governments, the All India Council of
technical Education, the Indian Institute of Technology in the region, the
University Grants Commission, the Faculty of the College, the Vice-
Chancellor of the Jammu and Kashmir University and the Principal of the
College as is ex-officio Member-Secretary. Admissions to the College are
made, by a Committee constituted by the Board, on the basis of comparative
merit to be determined by holding a written entrance test for 100 marks and a
viva voce examination for 50 marks.
Bhagwati, J., speaking for the Court, reiterated with approval the
propositions and tests evolved in R.D. Shetty v. International Airport
Authority case.
The Court took a step more forward and observed that the concept of
instrumentality or agency of the government was not limited to a Corporation
created by a Statute but was equally applicable to a company or society and in
each case it would have to be decided on the consideration of the relevant
99
factors.
In the light of the above enunciation and also applying the tests
propounded in the International Airport Authority case, the Court held that
the Society running the Regional Engineering College, Srinagar, was an
instrumentality or agency of the Government and an authority within the
meaning ofArticle 12.
In Steel Authority of India Ltd. v. Shri Ambica Mills Ltd.23 The
Supreme Court ruled that the SAIL, a company fully owned by the Union of
India and incorporated under the Companies Act. 1956. had its own identity
and could not be held to be a department of the Union of India. It thus
followed that SAIL, an agency or instrumentality of the Union of India, would
be “State” only within the meaning of Article 12.
A Regional Rural Bank is constituted by the Central Government
under the Regional Rural Banks Act, 1976. The share capital of the bank is
subscribed by the sponsor Bank. The Act vests effective control in the Central
Government as regards the functioning of the Regional Rural Bank. The Bank
has, therefore, been held to be the instrumentality of the Government and
therefore “State” within the meaning of Article 12.2A
Applying the tests, enumerated in Ajay Hasia’s25 case, it has been
held that a Cooperative Bank constituted and registered as a Society under
the State Cooperative Societies Act, is not an instrumentality or agency of the
State. Thus the Punjab State Co-operative Bank,26 the Ludhiana Central Co
operative Bank,27 the Punjab State Co-operative Land Mortgage Bank2S have
not been held to be “State” within the meaning of the expression “other
authorities'” under Article 12.
A Co-operative Society is nothing but a body created in accordance
with and governed by the provisions of the Co-operative Societies Act.
Certain number of persons form a society with certain aims and objects. The
Society requires registration in accordance with the provisions of the Act.
After having been so registered, it is subjected to certain rules, regulations and
directions framed and issued under the provisions of the Act. Such a society
is not created by the provisions of the Act itself, nor the State exercises any
control over such a society. None of the tests laid down in Ajay Hasia v.
Chairman Prathama Bank, Moradabad v. Vijay Kumar, AIR 1989 SC 1977. See
also U.P. State Co-operative Land Development bank Ltd. v. Candra Bhan Dubey,
AIR 1999 SC 753; M.K. Agarwal v. Gurgaon Gramin Bank, AIR 1988 SC 286.
Ajay Hasia v. KhalidMujib, AIR 1981 SC 487.
Satish Kumar v. Punjab State Co-Optt. Bank Ltd., AIR 1981 P & H 282.
Ibid.
Pritam Singh v. State of Punjab, AIR 1982 P & H 228, Ajay Hasia v. Khalid Mujib,
AIR 1981 SC 487, relied on. See also Jagdish Chander Gupta v. The J. & K. Bank
Ltd., AIR 1986 J. & K 1.
190
Khalid Mujib,29 is satisfied in the case of such a society. It is, therefore, held
in
conferred by law, Universities have been held to be included within the term
“State” for the purposes of Part III of the Constitution.36
As regards a private educational institution, the position appears to
be that it would be covered by the expression “other authority” only if it is
found to be an agency or instrumentality of the State in accordance with the
propositions enunciated in Ajay Haisa case.37
In N.K. Ramiah v. Yadava Kalvi Nithi Regd. Society,38 the Society
running Yadava College affiliated to the Madurai Kamaraj University, was
held not to be an authority under Article 12. The College was under the
control and supervision of the Director of Collegiate education and was
governed and regulated by the provisions of the Tamil Nadu Private College
(Regulation) Act, 197629
In Unni Krishnan v. State ofAndhra Pradesh,40 (Capitation Fee case),
the Supreme Court has recently, held that a private educational institution
either by recognition of affiliation to the University could not ever be called
an instrumentality of the State.41
However, a Medical College, though privately run, affiliated to the
Osmania University and receiving grants firm the public exchequer from the
State of Andhra Pradesh and having the representatives of the University and
State Government on its Managing Committee, has been held to be covered by
the expression “other authority” under Article 12 and amenable to the writ
jurisdiction.42
Umesh Chandra v. V.N. Singh, AIR 1968 pat 3; Gandhi Faiz-e-Am-Degree College
v. University ofAgra, AIR 1968 All 188.
Ajay Hasia v. Khalid Mujib, AIR 1981 SC 487.
AIR 1985 Madras 211. ;
See also Executive Committee of Vaish Degree College v. Lakshmi Narain, AIR
1976 SC 888; Parent Teacher Association, Maharaja's College v. State of Kerala,
AIR 1995 Ker 209.
AIR 1993 SC 2178.
See also J. Tiwari v. Jawala Devi Vidya Mandir, AIR 1981 SC 122; N. Kanakadurga
Devi v. Kakatiya Medical College, AIR 1972 AP 83.
Harijander Singh v. Kakatiya Medical College, AIR 1975 AP 35. Seel also Dinesh
Kumar v. Motilal Nehru Medical College, Allahabad, AIR 1985 SC 1415.
192
AIR 1985 SC 1415. Also See Mcmju v. State, AIR 1972 HP 37.
AIR 1985 SC 364.
Praga Tools Corporation v. C. V. Manual, AIR 1969 SC 1306.
R.D. Singh v. Secretary, Bihar State Small Industries Corporation, AIR 1974 SC
212. .
193
Ashwani Kumar v. Institute ofEngineers (India), AIR 1986 Ail 251; Saikat Ghosh v.
Institute ofEngineers, AIR 1996 Cal. 47.
Swapan Kumar Dass v. Secretary, Lalit Kala Academy, AIR 1990 NOC 129 (Cal.).
In Re the M.L. Shaw and another, AIR 1984 Cal. 22.
Abdul Ahmad Loan v. Manager Govt. Woolen Mills, AIR 1979 J & K 57.
S.K. Mukherjee v. Chemicals and Allied Products, Export Promotion Council, AIR
1962 Cal. 10.
Kartick Chandra Nandi v. W.B. Small Industries Corporation Ltd., AIR 1967 Cal.
231.
B. Rajkumar Patras. Union of India, AIR 1981 Ori 143.
M/s Nav Bharat Corporation v. Nagarjuna Fertilizers and Chemicals Ltd., AIR 1990
NOC 160 (AP).
194
M.L. Nohria v. General Insurance Corporation of India, AIR 1979 P & H 183.
Mradula Sharma v. State Chief Commissioner, M.P. Bharat Scouts & Guides, AIR
1995 M.P. 88.
Sarmukh Singh v. Indian Red Cross Society. AIR 1985 Lab 1C 1072.
The Hindustan Times April 19, 2002.
(2002)5 SCC (1).
195
the decision in Sabbajit Tewari case and held that CSIR is an instrumentality
of the State within the meaning of Art. 12 of the Constitution.
In G. Bassi Reddy v. International Crops Research Instt.60 It has been
held that the International Crop Research Institute is an international
organization and has been set up as non profit research and training centre to
help developing countries to alleviate rural poverty and hunger in various
ways is therefore, not a ‘State’ within the meaning of Article 12 of the
Constitution. Consequently no writ petition can be allowed by its employees
challenging their removal from service as being violative of Articles 14 and 16
of the Constitution. It is not set up by the Government and gives service to a
large number of countries voluntarily. It is not controlled by nor is
accountable to the Government. Likewise, in General Manager, Kisan
Sahkari Chini Mills Ltd., Sultanpur, U.P. v. Satrughan Nishad,61 it has been
held that the Co-operative Sugar Mill was neither instrumentality nor agency
of Government and therefore, not ‘State’ within the meaning of Art. 12 of the
Constitution. The Government of Uttar Pradesh held only 50% share in the
mill and the expenditure of mill was not met by the State but it operated on
basis of self generated finances. The nominees of State Government in the
committee of management of mill was only 1/3 and it was dominated by 2/3
non government members. Under its bye-laws State government could neither
issue any direction to mill nor determine its policy. The State has no deep and
pervasive control over mill.
In V.K. Srivastava v. U.P. Rajya Karmachari Kalyan Nigam,62 it has
been held that the U.P. Rajya Karmachari Kalyan Nigam is an agency and.
instrumentality of State and, therefore, is a State within the meaning of Art. 12
of the Constitution. The control of State on Corporation (Nigam) is not only
regulatory but deep and pervasive. It is formed with the object of catering to
needs of Government employees as supplement to their salaries and perks.
Top executives of the Government department, are ex-officio members and
60
AIR 2003 SC 1764.
61
AIR 2003 SC 4531.
62
AIR 2005 SC 411.
196
63
AIR 2005 SC 3226.
197
64
2002 AIR SCW 4957 : AIR 2003 SC 355.
65
AIR 1958 SC 956.
66
2002 AIR SCW 4957 : AIR 2003 SC 355.
198
67
2003 AIR SCW 4240: AIR 2003 SC 3724.
68
Ibid.
199
institutions permissible under Art. 30(1) and in the interest of general public
under Art. 19(6) of the Constitution. The alternative suggestion of post-audit
or check after the institutions have adopted their own admission procedure and
fee structure, is unacceptable for the reasons shown by experience of the
educational authorities of various States.
The Committees, to be more sensitive and to act rationally and
reasonably with due regard for realities. The Committees regulating
admission procedure and free structure shall continue to exist, but only as a
temporary measure and an inevitable passing phase until the Central
Government or the State Governments are able to device a suitable
mechanism and appoint competent authority in consonance with the
observations made hereinabove. Needless to say, any decision taken by such
Committees and by the Central or the State Governments, shall be open to
judicial review in accordance with the settled parameters for the exercise of
such jurisdiction.
(B) 93rd Amendment of the Constitution of India : The Constitution
(Ninety-ThirdAmendment) Act, 2005 :69
An Act further to amend the Constitution of India. Be it enacted by
Parliament in the Fifty-sixth year of the Republic of India as follows :
1. Short title and commencement- (l)This Act may be called the
Constitution (Ninety-third Amendment) Act, 2005.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
2. Amendment of Article 15.- In Article 15 of the Constitution, after clause
(4), the following clause shall be inserted, namely : “Nothing in this Article
or in sub-clause (g) of clause (1) of Article 19 shall prevent the State from
making any special provision, by law, for the advancement of any socially and
educationally backward classes of citizens or for the Scheduled Castes or the
Scheduled Tribes in so far as such special provisions relate to their admission
69
Received the assent of the Presidnet on 20-1-2006. Act published in Gaz. Of India;
20-1-2006; Pt. II-S. 1, Ext., P. 1 (No. 4).
200
81 period to 1.6 per cent per year during the 1981-91 period and to 0.8 per
cent during the 1991-95 period basically due to the industrial sickness as result
of ill-conceived economic policies pursued by the successive Governments
and it is well demonstrated in the industrial growth rate as stated in the
Economic Survey 2003-04. In the agriculture sector also, the situation is
highly disappointing as the employment in this sector dropped to 57 per cent
in 1999-2000 from 60 per cent in 1993-94.
The problem of depletion of employment is clearly linked to the LPG
policies pursued by the successive Governments at the Centre and the States
for over one decade.
The Scheduled Castes and the Scheduled Tribes and the other socially
and economically backward communities are the ones who are most hit by this
situation. The industrial units in the Public Sector and also the Central and
State Governments were the major areas of employment generation and in
these sectors the socially backward communities and other weaker sections
enjoyed the chances of getting employment through the existing reservation
policy only. But with the policy of privatizing the Public Sector Units,
downsizing of Government services and the ban on recruitment minimized the
avenues of employment for these sections.
Agriculture sector used to provide about 60 per cent of the total
employment in the country. More than 70 per cent of the people depend on
this sector. Agriculture sector suffered heavily during this period owing to the
above said policies. The decision of the Government to include agricultural
produce in the list of reducing of import tariffs in accordance with the WTO
conditions played havoc with our agriculture sector. Also, the stand of the
Government cutting down the public investment in this sector coupled with
the severe drought situations prevailed in many parts of the country in
successive years crippled the Indian agriculture. Due to this situation, there
were drastic reduction in the agricultural activities resulting in millions of
agricultural labourers losing their work and means of livelihood and life
security.
202
were arguing that those people were not civilized enough and that they were
not educated enough.
Here, in this country, the Constitution stands committed that the
people, the S.C.’s & S.T.’s, who, due to historical reasons, are not provided
the opportunities to come forward in life, should be taken by hand and put to
the forefront. When we advance, when the society advances, we want those
people also to go along with us. If your argument is accepted that they should
be trained first, that they should be educated first, then.they will have to wait
for centuries to get employment. You are supporting reservation, but it would
be a left-handed compliment. We are saying that reservation should be there.
In the given conditions of India, when reservation, as a matter of principle, is
accepted in the Constitution, here are certain new areas where opportunities
are denied because of the Government’s policy. We want reservation to
ensure job opportunities in those sectors where disinvestment and
privatization are taking place. Another point is, India got Independence 57
years ago. Now, 57 years have passed.
A child born in 1947 would turn 60 in another three years; still we
could not do much justice to the backward classes and the tribals. There are
many appalling stories one could narrate. The tribals who wanted shelter and
job had agitated in Kerala were shot down. The tribals who got killed was not
compensated, where as, the policeman who shot them down was compensated.
This happened to the Muthanga incident. The tribals were not compensated
by the Government. This happened even 57 years after we attained
Independence. This is the condition of the poor, especially the socially
oppressed, the Scheduled Castes and Scheduled Tribes. So, how are we going
to implement the pledge made by the founding fathers of the Constitution?
This is a thing that every one of us sitting here should get a little more worried
about. If that has to be done, concrete steps have to be visualized by which
the backlog .could be eliminated.
The proposal is that in Private Sector employment there should be
reservation based on backwardness for the Scheduled Castes and Scheduled
205
alienated and isolated. You have been giving so many agencies to the private
sector. Is there any agency in the private sector which has been given to a
Dalit or a Scheduled Caste? During all these forty to fifty years, there has
been development, but the disparity in development is so glaring that the
widening of gaps is very severe, which is reflected in the number of Naxalites.
90 percent of naxalites belong to these weaker sections of the society. We
should also place ourselves in private sector’s position. They have certain
apprehensions. But the Government is willing to sit with them and give them
an assurance. Today, you suddenly reserve 15 per cent for the Dalits or
Scheduled Castes. The process is already on.
The delivery mechanism needs to be sensitized. They should be made
accountable. But Dalits feel excluded because today 168 Government of India
Secretaries and equivalent posts are there, but there is no Dalit in that post.
There are 439 posts of Joint Secretaries. Hardly nine people belong to S.C.’s
and S.T.s. Your assessment system has to be changed. Subordinates also
should be given an opportunity.
I am sure we are all here to appreciate the efforts of the Government. I
find lot of committed developmental officers taking a lot of interest. A
dialogue will be intensified to convince the private sector to accept it.
Shri Sharcid Anantrao Joshi : I am very doubtful about the objective to be
achieved out of the Resolution of Mr. R.S. Gavai. We know the conclusion of
the Resolution. The hon. Minister, while replying, would certainly say that it
is a part of the CMP and the Government have the intention of implementing
within a given specific time limit.
The second point that I would like to make as an agriculturist is that if
agriculture were to be considered as private sector. I am ready to employ
people to whom you are prepared to give employment in the agricultural
sector, provided you consider that employment in agriculture is employment
in the private sector.
Shri Matilal Sarkar : The rate of growth of employment, as per the National
Sample Survey Report, has declined from 2.7 per cent in 1994 to 1 per cent in
207
2000. At the same time, if you look at the employment generation, it was 2.4
per cent during 1971-81 and it came down to only 0.8 per cent in 1991-95. In
the agricultural sector also employment opportunities dropped from 60 per
cent in 1994 to 57 per cent in 2000. This means, the worst sufferers are
S.C.’s/S.T.s and Other backward Classes, because they are largely employed
in this sector.
In the case of O.B.C.’s, they constitute 51 per cent of the total
population whereas their job share is only 12 per cent. That is why this
question of reservation had come in their cases also. The spirit of our
Constitution is that due to historical reasons the S.C.’s, the S.T.s and the
O.B.C.’s people could not come forward; and, it is the duty of the nation to
bring them upward. That is why the mechanism of reservation has been
incorporated in the Constitution. There are some States and Tripura being one
of them, where the reservation has not come into force in the State services.
Throughout the country, wherever naxalites or other terrorist groups are there,
we find only those people are involved who are frustrated, who are
disappointed, who do not see any hope and whose aspirations are ruined.
Now the time has come to take some initiative. I should say some devices
should be explored so that jobs can pour out in large numbers at the ground
level. Otherwise, this agony of the society will not perish; it will not be
removed.
S/iri V. Narayanasamy : A decision was taken by the UPA Government that
in the private sector, reservation for the Scheduled Castes, the Scheduled
Tribes and the O.B.C.’s people should also be given and they should be given
employment opportunities. It is under the total control of bureaucracy who
are not allowing reservation to be implemented for the concerned people.
Millions of. young youth, especially, belonging to the Scheduled Castes, the
Scheduled Tribes and the O.B.C.’s have to be provided jobs. Therefore, the
avenue that is open to them is the private sector. The Hon’ble Prime Minister
in the chamber of Commerce and Industry meeting said that the Government
is committed to provide reservation in private sector industries. I am surprised
208
and aghast at the suggestion made by the industry. It is very surprising. They
say that efficiency will not be there.
A lot more has to be done for the backward classes. There should be a
Parliamentary Committee for O.B.C.’s. There should be a pre-promotion
training for O.B.C.’s also in the Government jobs.
Prof. Saif-ud-din Soz : Reservation should continue till they come up to the
level of the other part of the society. The basic principle was that this section
of society and its children would be given ability to compete. The children of
backward section have no training. All metropolitan cities, which have a
population of more than 25 lakhs must have colleges established for the
children drawn from the Scheduled Castes and Scheduled Tribes and even
O.B.C.’s. Why during the past 55 years or more we failed to establish
colleges for preparing the children from these backward classes for IAS, IPS,
IRS, ISS and many other services. They, founding fathers had envisioned that
after a decade, children drawn from all these sections of society would be
empowered to face the test for services, and they would be equal with others.
Therefore, reservation principle is necessary and reservation must continue.
Simultaneously, we must have scholarship scheme.
Shrimati Prema Cariappa : Reservation is in some form ought to be extended
to the private sector to correct the mistake made in the past. The private sector
companies which have taken various concession from the Government must
be asked to spend some percentage of their profits in the social sector and it
may be in the form of keeping some seats reserved in their companies for the
weaker sections. The reservation in jobs is one of such powerful tools to bring
about social change and to bring lower castes at par with higher castes. All
efforts should be made to persuade the private sector companies to follow the
policy of reservation.
Dr. Faguni Ram : Reservation of Scheduled Castes/Scheduled Tribes is in
relation to the percentage of proportion of their population. Whenever the
population increases, their share should be increased.
209
The main point is that job opportunities for S.C.’s/S.T. people are
decreasing under the Government jobs because the number of Government
jobs are declining. Recently, there has been a ban on fresh recruitment in
Government jobs. They remain unemployed even after being educated. To
say that if the S.C.’s/S.T. people are given reservation in the private sector,
there will be decline in quality, is not proper in my view. I, therefore, strongly
plead that whenever appointments are to be made, whether it is in private
sector or any other sector, there should be provision for reservation for these
people. After all, the S.C.’s/S.T.’s people are also the part and parcel of this
country and society. They also contribute to the building of the nation and
hence, they should also have their participation in it.
I think that in order to enable them to perform different types of work
there should be provision for imparting them training at Government level or
by private institutions so that they may attain skills and become expert in their
work and when go for the private sector jobs they could work to the
requirements of their employers and help in the growth of the industry. I
believe that the private sector people will liberally come forward in this regard
and they would provide reservation in jobs for these people as per the
Government policy so that they contribute towards the task of nation-building.
The Minister of Social Justice and Empowerment (Shrimati Meira Kumar),
intervening in the debate, said : I want to congratulate Shri R.S. Gavai,
honorable Member of Parliament for having brought his Resolution because it
has generated a very useful debate. Twenty five members from almost all the
parties have participated in this debate. I am very happy to note, and, I feel
very encouraged that every one Member has supported this Resolution, and
there is unanimity is lending support. The UPA Government in its National
Common Minimum Programme has made a commitment that we will have
national, dialogue with the private sector and with all the political parties with
a view to having a consensus to fulfill the aspirations of S.C.’s and S.T.’s
youth for having affirmative action including reservation in the private sector.
Everybody has mentioned about the historical injustice that has been done to a
210
very large section of the Indian society. So, it would be in the interest of all of
us to ensure that these people are mainstreamed and they are given a place of
respect under the sun so that they bring out their best and contribute to the
progress of this country. So, with this view, this Government has included
this very important paragraph in the National Common Minimum Programme.
Due to privatization and globalization, gradually, on the one hand, the
Government jobs started shrinking and on the other hand, the private sector
became the prime mover of economy, and it had immense opportunities for
jobs. We gave concession and every possible assistance to the private sector
to grow. Today it has really grown up. Another section of our population still
requires opportunity to grow. We want the private sector to do this work
voluntarily. Because the best of the people, the most capable of the people,
are running the private sector, the Prime Minister and the UPA Government,
want them to come with their proposals to fulfill the aspirations of the
S.C.’s/S.T.’s youth. On 24th August, we also had a conference where all the
intellectuals, vice-chancellors, social scientists, economists, retired civil
servants and all the other thinkers concerned with this issue participated.
They have given some very useful suggestions and they were all unanimous in
support of this policy of affirmative action, including reservation. Hon’able
Prime Minister has also, formed a Group of Ministers who held a meeting and
after the meeting letters have been sent to 218 associations of trade and
industry sector. Some of them have replied. We are awaiting reply from most
of them. Then, we will take the next step.
We will hold consultations with M.P’s belonging to S.C.’s/S.T.’s and
with other NGOs concerned on this. Whatever emerges out of that
consultation, we shall be implementing that. The definition of ‘merit’ is very
distorting, and it is something which suits a certain section or a certain sector
which talks of reservation with contempt. But frankly speaking, it wants to
reserve a certain arena just for itself. They forget that there is something
called opportunity. People whom you are looking down upon, are not the
211
people who do not work hard. They are the most hard-working people, back
breaking hard work they do, 24 hours a day.
This talk of merit is a part of the untouchability phenomenon. So, I
don’t want to talk about it. So far as private sector is concerned, whatever be
their misapprehensions, I want to remove them. The UFA Government is
committed to taking affirmative action, including reservation for S.C.’s and
S.T.’s youths in the private sector. I would, therefore, request Shri R.S. Gavai
to kindly withdraw his Resolution.
Arguments of Leading personalities on Reservation Policy in Private
Sector
(A) Arguments in favour:
A policy of reservation in the private sector would definitely not effect
its “efficiency”, but would help in a small way in correcting historically
entrenched and still pervasive social discrimination.
So the debate on reservation in the private sector must be seen within a
broader perspective, as being a policy that would definitely not affect
“efficiency” of private, sector functioning, but still would go a small part of the
way in correcting historically entrenched and still pervasive social
discrimination.70
Under the circumstances the refusal of the industry to employ people
from S.C.’s/S.T.’s cannot be accepted as valid and justifiable on any ground.
The UFA government is also duty-bounded by the CMP to enforce reservation
of jobs for S.C.’s/S.T.’s and O.B.C.’s in private companies. It must pass a law
in Parliament providing for it. If it does not do so, that will only reflect the
hypocrisy of the constituents of the UPA. Its failure to do so will, in
unequivocal terms, prove the absurdity of its policy of liberalization,
privatization and globalization. It will also be a clear signal to the people
belonging to Scheduled Castes, Scheduled Tribes and Other backward
Classes, who constitute 85% of the total population of the country, that if they
Ghosh, Jayanti, Frontline. (The Hindu Group) Vol. 22, Issue 22, 22 Oct-4 Nov
2004.
212
wish to live a dignified life in, this country they must throw out every
government which comes to power on their strength and works contrary to
their interests and as the agents of a few hundred capitalists and industrialists.
They should also organize themselves under the new leadership
evolved from amongst themselves (not depending on its old leadership which
goes on changing its stance in view of its own personal benefits) and launch a
movement to force the government to take decisive action in the matter and
71
not pay only lip-service to their cause.
If Reservation is Against Merit: The supreme court verdict on the issue of
unaided minority institution gives a freehand to the people who have always
wanted the education to be the domain a few people and communities.
Unfortunately, these institutions serving in the name of minorities will end up
creating more Brahmins for our country. The very purpose of educating poor
79
and minorities gets defeated.
This concept of private reservation cannot be considered as charity, but
a right from a government that exposed its hollowness. Further, it is a
^
7
necessity as the government failed to create jobs to its qualified aspirants.
Affirmative Actions in Indian Private Sector: Three alternative remedies,
namely, equal opportunity laws, affirmative action measures and reparation
that have been used by a number of countries to correct the imbalances in the
sub-groups of their population. Adoption of some of these remedies against
discrimination for S.C.’s/S.T.’s/O.B.C.’s in private sector in India will be
determined by the nature of economic discrimination faced by them in various
markets. It is more than apparent that the low caste untouchables in India
suffered from societal discrimination in multiple economic spheres.
Therefore, remedies against past and present discrimination in the private
sector should necessarily include multiple economic spheres and not just the
labour market. Given the wider coverage of societal discrimination strictly
speaking all the three measures are essential for remediation of market and
non-market discrimination.74
Reservation in private sector inevitable
“Government should promulgate an ordinance to make the
constitutionally guaranteed reservation facilities for S.C.’s, S.T.’s and
backward classes applicable even in private sector,” urged D Basavaraj,
President of the City Municipal Council.
He was speaking after inaugurating the Ambedkar Birth Anniversary
programme under the auspices of Dalita Sangarsha Samiti.
Expressing deep concern over the absence of educated dalit youth in
companies like Wipro and Infosys, Basavaraj felt that implementing
reservation norms in the private sector was the only remedy to ensure job
security to the oppressed classes.
He also pointed out that the government had stopped recruitments and
downsizing exercises were already on in several departments. “Decades ago
all the educated dalit youth invariably got a good job. However, after the
onslaught of globalization, even rank holders find it difficult to get a suitable
placement,” he regretted.75
Reservations must in private sector
It is said that only the wearer knows where the shoe pinches. Extreme
hope always takes birth from extreme miseries and back-breaking difficulties.
Dr. B.R. Ambedkar, one of the architects of the Constitution of India,
belonged to a very poor section of society and had to face humiliation many a
time during the course of his life and studies.76
‘Pvt. Sector has to implement quota’
New Delhi: The Government doesn’t want to force the private sector to
implement reservation and would prefer that companies do it voluntarily.
Thorat. Sukhadeo (Chairman, U.G.C.), “On Reservation Policy for Private Sector”.
Basavaraj, D. (President of City Municipal Council), Decan Herald (Internet
Edition), May 1st, 2005.
76
Singh, Karam, (An IAS Officer), The Tribune, (Chandigarh) Jan. 15th, 2006.
214
Minister for Social Justice and Empowerment Meira Kumar said this in an
interview to Karan Thapar on CNBC’s programme, India Tonight.
“You have to do it amicably. I am the last person to do it by legislation.
Please don’t force me to a situation where we have to thin of legislation. I
have great regard for captains of industry and they should do it. I think they
understand their moral responsibility”, Meira Kumar said.
The UPA Government was committed to implementing reservations for
Scheduled Castes and Scheduled Tribes, said Meira Kumar.
“The commitment is to both affirmative action and reservation. Affirmative
action includes reservation,” she said adding the implementation was “not just
a possibility but it is a commitment”.
Kumar said, the voluntary action of legislation was the only way to implement
reservation in the private sector. “I suppose there is no third way”.77
Private sectorjob reservation-Striking the middle path
The principle of job reservation for certain categories cannot, per se,
be faulted by anyone with a social conscience. But there are problems in
applying such a policy in the private sector. One way to get around them
would be for an industry association to draw up and implement a scheme of
reservation under supervision by its members.
The Constitutional reservation of jobs in the public sector for candidates
belonging to the Scheduled Castes and Tribes is a reflection of the nationally-
felt obligation to compensate them for the undisputed centuries of suppression
of their opportunities and a fast-track remedy for the consequent cumulative
social and economic disadvantage faced by them.
The principle itself cannot, therefore, be faulted by anyone with a social
conscience, particularly in the context of increasing privatization leading to
the loss of jobs reserved for such candidates in the public sector which would
get transferred to the private sector. If the principle itself is unexceptionable,
why, then, is there an uproar about its being extended to the private sector? Is
A report, CNN-IBN News dated June 1st, 2006., Decan Herald, June 7, 2006.
215
Doraiswamy, P.K. (Ex. Special Chief Secretary, Govt, of A.P.), Business Line (The
Hindu Group), Dec. 14th, 2004.
Sachar, Rajindar, PUCL Bulletin, May, 2004.
216
80
The Hindu, (Banglore), dated May, 02, 2006.
217
Kumar, Meira, India News views (Delhi) dated June. 7lh, 2006.
Paswan, Ram Vilas, The Indian Express (Chennai) dated Sept. 9th, 2004.
218
developed at the expense of the govt, or they simply borrow from foreign
countries. According to an estimation, about one crore twenty five lakhs crore
of Rupees of black money from India is in Swiss Banks, who is responsible
for this black money? Evasion of taxes like customs, Income tax, Sales tax
and Excise are so rampant that there is hardly any parallel to them in the
. world. Do we have such an example like Melinda Gates, wife of Bill Gates
who gave about 5000 crores of Rupees for HIV patients and education seeing
the condition of the poor in Calcutta slums? Her husband Bill Gates has
announced that he would part with his whole wealth before his death except
bare minimum necessity for his children. Our industrialists are not in a
position to produce, a single international brand. There was no reservation in
their establishment yet they have done worse. When a common man goes to
the market to buy small items like blade, nail cutter or torch, he looks for
Korean or Chinese made items because they are beautiful and durable. What
have Indian Industrialists done if they have not produced even small articles?
Now they are arguing strongly against reservation in Private Sector saying it
would hamper the quality and quantity. They are wrong ab initio because
selection process for staff and working people itself is faulty. The method of
appointment in the private sector is through words, nepotism and force and
pressures and not based on merit. If our industries have failed to produce
quality and quantity then it is because of ineffective human resources also.
Like in US we are asking our industries to select the best lot of human
resources from all groups of the population and advocacy for reservation in
Private Sector is a step forward in that direction only. In the US when the
corporate houses declare their profit and loss accounts, they happily disclose
the welfare done to Blacks and Red Indians. Do our industrialists have such a
heart? The selection and recruitment method the private sector does not pool
human resources from more than 20% of the population. Obviously Dalits
and minorities and marginalized groups will be left out and hence best of all
will not get the opportunity to contribute towards the growth of economy.83
Reservation in private sector a social necessity:
83 Raj. Udit, Memorandum submitted to the P.M. of India (Dr. Manmohan Singh) after
the rally held on 12th Dec. 2004. at Ramlila Maidan. New Delhi by the All India
Confederation of SC’s/ST’s.
219
84 Kumar, Suresh (Prof. & Dean IMS - H.P.U. Shimla), The Tribune (Chandigarh)
dated Dec. 19th, 2004.
85 Prakash, A. Tirumalai @ Cool Avenues. Com.
220
Petition to President of India was crated by All Indians and written by Pradeep
Kumar v. (ranideep@gmail.com).
222
lives of millions in our country. No one will like to travel in a plane, which is
piloted by a guy who became pilot only because or reservation. No one will
like, to operate by a medico (surgeon) who became a doctor only because of
reservation. Moreover peoples from the reserved categories are more
interested in time-passes, strikes, bandhs, hartals, politics, etc. than performing
their duties and business. They are not utilizing the generosity given by our
Government.
Still our Government and political parties are giving more and more to them
only for petty Vote-Bank politics and electoral gains. This will diminish the
quality of our nation - India. Now India is facing a stiff competition from
countries like. Russia, South Africa, Israel, China, South Korea, Japan,
Mexsico, etc. in global markets. So reservation will only hurts our prospects.
If corporate gains like Reliance or Tatas or Birlas or Infosys or Wipro will
accept reservation policy and implement it, obviously with in 1 year these
companies will close. Because this way of recruiting will affect their
business. In other countries I mentioned above there is no reservation or
bandhs.89
The die is caste for corporate India :
based job reservations on its own, it might have them thrust down its throat by
executive fiat.
At this stage, the prime minister’s suggestion is only a thought tossed on the
table of corporate bigwigs. Soon, it could become the law of the land. The
suggestion came, amid debate on quotas for castes broadly categorized as
Other Backward Castes (O.B.C.’s) in premier educational institutions.
The issue of caste quotas, which is ostensibly aimed at uplifting the
marginalized castes, is one that often provokes heated debated and angry
protests. India already provides for 22.5% reservation of jobs and seats in the
public sector and educational institutions for the Dalits (or Untouchables as
they were once called) and Adivasis (tribals), which occupy the lowest rung in
India’s social hierarchy.
In 1990, when the government proposed reserving another 27% of jobs for
O.B.C.’s, violent protests - one student even torched himself -exploded across
the country. Early this moth, Human Resource Development Minister Arjun
Singh proposed quotas for O.B.C.’s in India’s premier technological and
management institutes, an announcement that has sparked furious street
protests by students.90
Reservation -A necessary evil:
As the public sector units are not generating sufficient employment
opportunities for the growing number of unemployed oppressed people, the
government is forced to look at other options to create employment
opportunities for them. But this is the first time there has been talk of
extending the quotas to the private sector. The proposal has been met with
stiff opposition from Indian industry, which feels if implemented; it will
render domestic industry globally non-competitive. Those who are opposed to
this idea believe that this will hamper India’s growing corporate efficiency.
As the private sector recruits on the basis of merit and not on caste or creed,
90
Ramachandran Sudha, Asia Time, Banglore dated, April 29, 2006.
224
these reservations will be a big blow to the corporate world in India which is
in its infancy with respect to the global scenario.91
I think we should have job reservations in all the fields. I completely
support the PM and all the politicians for promoting this. Let’s start the
reservation with our cricket team. We should have 10 percent reservation for
Muslims. 30 percent for O.B.C.’s, S.C.’s/S.T.’s like that.
Cricket rules should be modified accordingly. The boundary circle should be
reduced for an S.C.’s/S.T.’s player. The four hit by an O.B.C.’s player should
be considered as a six and a six hit by an O.B.C.’s player should be counted as
8 runs. An O.B.C.’s player scoring 60 runs should be declared as a century.
We should influence ICC and make rules so that the pace bowlers like Shoaib
Amhtar should not bowl fast balls to our O.B.C.’s player.
Bowlers should bowl maximum speed of 80 kilometer per hour to an O.BiC.’s
players. Any delivery above this speed should be made illegal. Also we should
have reservation in Olympics. In the 100 meters race, an O.B.C.’s player
should be given a gold medal if he runs 80 meters.
There can be reservation in Government jobs also. Let’s recruit S.C.’s/S.T.’s
and O.B.C.’s pilots for aircrafts which are carrying the ministers and
politicians (that can really help the country...)
Ensure that only S.C.’s/S.T.’s and O.B.C.’s doctors do the operations for the
ministers and other politicians. (Another way of saving the country...)
Let’s be creative and think of ways and means to guide INDIA forward...
Lets show the world that INDIA is a GREAT country.
Let’s be proud of being an INDIAN...
May the good breed of politicians like ARJUN SINGH long live.. .92
Job reservation in private sector can’t be forced:
Former Indian Prime Minister Atal Bihar Vajpayee said the private
sector would have to be responsive to the needs of society as job reservation
cannot be forced on it.
Vajpayee, A.B. (Ex. P.M.) On Yahoo India News dated Dec. 13, 2003,
Prof. Dang, Sunil. “Inflation: The Silent Killer, p. 1.
226
Dutta B.C. IRS (Retd.), Organsier dated June 18,2006 pp. 29/40.
Deveshwar, Y.C., (CII Chief) Business News only Punjab. Com. pp. 1-2.
227
97
Kumar Chellappan at E: mama|detaiIedstory,isp.htm.
228
provide employment 110 crore, of. the 34.3 crore, 2.3 crore are in the
QO
100
Vaidyanathan, R. (Prof, of Inaman and Control I1M. Banglore) Business Line (The
Hindu Group), Aug. 12, 2004.
230
elite at the time, their mood was firmly against reservation policies, and what
came to be included in the Constitution was done so only through the pressure
of the anti-caste movement. The movement however, was not strong enough
to push further. Thus, in 1947, the question of “other backward castes” was
left hanging, and it was only the direct Government sector that was seen as an
appropriate place to insure opportunities for employment.
Clearly, compensatory discrimination efforts, or social justice
programmes, need not be limited to education and the public sector. In fact,
today as India is “going global” faster than many sections of the society want,
it is important to realize that a truly modern society requires the conscious
creation of opportunities for all of its citizens, and a truly competitive society
cannot afford to waste any talent. This means that social justice programmes
are not only in the interest of Dalits and Adivasis, but in the interests of the
nation as a whole - and they require policies that take account of every sector
in a modern and growing economy. Universalizing education and health care
is a crucial part of this; access to land and other property is necessary; but so
are special programmes ensuring access to employment - in the “private” as
well as the “public” sector. If liberalization is to be successful, the private
corporate sector cannot remain an island of “upper” caste privilege.
WHILE RESERVATION in the corporate sector is now a very strong
possibility, a major factor hampering all programmes of social justice in India
has been their extremely reluctant acceptance by the ruling elite. In spite of
Constitutional guarantees and official policies, ideas are still widespread that
somehow “reservation” and “merit” are opposites, and that programmes to
achieve “social justice” will slow down the development of a truly open,
caste-free, merit-based society.
The reality is that in a caste (or race) - affected society, only by
recognizing the disabilities of caste or race can true openness and mobility be
achieved. In a genuinely open and dynamic society, people of talent from
every social group, and from rich and poor alike would have a chance to rise
to the top. Such a society, however, has never truly existed in India; it exists
231
only as aspiration and hope. It has never truly existed in the U.S. either,
which is why programmes of “affirmative action” have had to be taken up
there why the fight for racial justice still goes on. For that matter, nearly
every country in the world has some form of discrimination, and the upcoming
United Nations Conference on the Elimination of all Forms of Racial
Discrimination in South Africa indicates that the effort to build a world-wide
open society still has to go on.
In India, the barriers to openness and merit have taken two main forms,
that of patriarchy or gender discrimination and that of caste discrimination.
Since the Indian form of patriarchy is largely affected by caste, we focus on
caste discrimination here. It is easy to understand how in the past birth was a
determining factor in a person’s life chances: those of castes considered “low”
had little right to education, little political power and small access to property.
Those classified as “untouchable” were even worse off than the ones
considered “shudras” in the official varna classification; they had no land,
were excluded from participation in nearly all public spheres of life, had not
even the glimmerings of a right to education, and had work opportunities
limited to the most polluting and arduous jobs.
But social justice and the creation of an open society is not really about
the past; it is about the present and the way discrimination operates today.
India has moved ahead in many ways in the 20th century; it has opened up
education and employment opportunities. Yet caste continues to be a
determining factor in social life, and caste and kinship networks very often
play a major role in access to employment. People of “low” castes, and
particularly the ex-“untouchables” still are deprived in many areas of rights to
equal participation in public life in simple things such as the right to drink tea
in a public tea shop-leave alone the question of owing the shop.
Employment is only partly the result of merit even in examinations and
interviews: it has a large element of “influence”. And for those trying to run
businesses, even very tiny ones, the role of influence and access to power is
even greater. These are direct factors of discrimination; indirectly, the limited
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do not have. This situation means that there is a vast wastage of “human
resources” in India. It should be of concern not only to Dalits and O.B.C.'s
themselves, but to any true nationalist.
It is often argued that globalization means that issues such as “social,
justice” and programmes to develop the talents and skills of the deprived no
longer have relevance. But the opposite is true. A closed-in nation with little
involvement and trade with the rest of the . world can afford to move along
slowly, to stagnate, to let the talent of its vast human population go to waste.
while a few take on responsibility for “guiding” the society. But an open
nation has to stand the test of competitiveness. And the fact is that trying to
compete with so much human deprivation continuing to exist is like trying to
engage in trade or. become a world power with a population of only a couple
hundred million, instead of a billion energetic, talented, people.
This is why programmes of social justice, including the
universalisation of education, access to property and resources, and the “talent
search” which we otherwise describe as reservations, all of them essentially
programmes to develop the talents and potentialities of the entire population,
should be of concern not only to Dalits and other deprived groups, but to
policy-makers and business leaders as well.
Reservation in Private Sector : some neglected dimension of national
debate:
One of the major objective of the Common minimum Programme of
the UPA Government was that the development of Scheduled Castes and .
Scheduled Tribes (S.C.’s/S.T.’s). In order to do, the UPA government was
sensitive to look into the issue of affirmative action, including reservations, in
the private sector. As democratic governance, the government initiates a
national level discussion with all political parties, industry and other
organizations to see how best the private sector can fulfill the aspirations of
S.C.’s/S.T.’ss thorough national dialogue.
This has regenerated immediately reactions (positive and negative)
from various comers. The industry and business house were the first to react
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year. All the above measures put neither any extra-financial pressure on the
treasury nor require any legislative action.
The public sector oil companies reserve 22.5 per cent of their petrol,
diesel, kerosene and LPG dealership for the Dalits. All the nine PSUs could
stimulate employment for lakhs of Dalits by introducing Supplier-Dealership
diversity for Dalits even in the areas of office equipment, electrical gadgets
and furniture. Sadly though, during its earlier four-and-a-half decades of rule,
the Congress couldn’t envision creating a strong business class from within
the community. And now, when the opportunity came, it has betrayed the
Dalits in a most ruthless manner.
Now the party leadership is selling the “private sector job quota”
dream, a repeat of the previous experience when it did not allow Dalits to
move beyond government jobs and become partners in the market economy.
An economically strong Dalit community can be a headache for the
mainstream polity, this they understand better than the Dalits.101
Govt, asks Indian Industries to opt voluntarily for quota:
New Delhi: The issue of reservation in private sector could hot up in
the days ahead with the government telling the business and industry to
voluntarily opt for it and not to force on it the option of a legislation.
“You have to do it amicably. I am the last person to do it by
legislation. Please don’t force me to a situation where we have to think of
legislation. I have great regard for captains of industry and they should do it.
I think they understand their moral responsibility, “Minster for Social Justice
and Empowerment Meira Kumar said.
Participating in Karan Thapar’s India Tonight programme on CNN-
IBN, she said that implementing reservation for the S.C.’s/S.T.’s in the private
sector was a “commitment” of the Congress-led coalition.
“Commitment is to both affirmative action and reservation.
Affirmative action includes reservation”, she said emphasizing that its
implementation was “not just a possibility but it is a commitment”.
101
Prasad, Chandrabhan, The Pioneer, June 23, 2006.
238
Kumar made it plain that she saw no way other than voluntary action
on the part of the industry or legislation. “I suppose there is no third way”.
The Social Justice Minister refuted suggestions that she was on a
collision course with business and industry on the issue and emphasized that
“we have to work with mutual co-operation”.
She dismissed as “too hypothetical” a query whether government
would drop the demand for reservation in private sector if the industry
succeeded in showing that it already employed enough number of people from
the deprived sections.
She regretted that the industry and business was “all the time doubting
the merit of S.C.’s/S.T.’s and said government has a “case” for the
downtrodden in the country in the for of its proposal.
When confronted with the latest National Sample Survey (NSS)
figures, which spoke of the S.C.’s/S.T.’s as also the O.B.C.’s getting
employment as per their share of the population, Kumar said that she was “not
suspicious” about the figures but the deprived sections are generally
considered for employment in lower categories.
To claims by certain industry organisations that several companies had
already employed sizeable people from the weaker sections, the Minister said
that the industry earlier was not even once ready to look into the composition
of its workforce despite her pleadings.
“The need of the hour is that we should find job opportunities to
S.C.’s/S.T.’s in the private sector, “Kumar said adding that the proposal in the
NCMP was only related to S.C.’s/S.T.’s and not for O.B.C.’s.102
Conclusion
Immediately after Union Human Resources Minister Arjun Singh aired
his views about the possibility of introducing reservations in institutes of
‘higher learning, speculation was rife that he had done so without consulting
the prime minister. Indeed, the prime minister had long expressed strong
views in favour of meritocracy rather than caste-based quotas.
102
Times of India, June I, 2006.
239
That way, the private sector can show it is no less concerned than the
prime minister about building an inclusive society. Meanwhile, the
government would do well to put to rest ail thoughts of legislating quotas.
The business class must realize that their arguments against reservation
basically stem from age-old prejudices in Indian society vis-a-vs the lower
castes. There is absolutely no rationale in them. There is no connection of
merit with reservation. Reservation never meant accepting anyone just on the
criterion of birth. Reservation simply means that a person having requisite
qualification for the job should not be denied, it just because he or she is bom
in a certain caste. Reservation does not have any connection with efficiency
too. The latter is an outcome of many variables such as organization culture
employee motivation system and processes technology training etc. Most of
these variable depend upon the management which is virtually monopolized
by the upper caste elites. If a person in the organization is not efficient the
onus must shift to the manager and not to an individual. Reservations do not
have any connection with foreign direct investments. The foreign investments
do not flow by seeing the caste of employees. For all these years when India
was exclusively ruled by brahmans and banias foreign investors did not even
look at it. They appear enamored with it today because of its huge market its
infrastructure its trained manpower available at paltry wages its high interest
rates, its political stability and consequently expectation of high rate of
returns. Who has created this market it is not a handful of upper caste
meritoritous’ people but evidently the majority belonging to meritless lower
castes. Reservations have certainly contributed in creating this market by
putting purchasing power in their hands. It may be easily seen that none of the
factors that attract foreign investments into the country depend upon a handful
upper caste people but on the contributions of vast masses.
After taking the debate on reservation in the private sector further there
is a need to rearticulate the concept of reservation in India. Much of the
opposition and resistance to reservation can be traced to their wrong
conception which even the supporters of reservation have not contested or
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come without pressure from the beneficiaries. The importance of potent Dalit
movement here gets underscored. Such a Dalit movement today may sound as
a far cry but then one should also reconcile that reservation in the private
sectors will also remain a far cry without a dalit movement. Dalits must
realize the limitations of any kind of reservation. The greatest damage
reservations have done to dalit interests is to effectively eclipse the dalit
struggle for emancipation. Paradoxically, it is the very struggle that can
create requisite political will for the effective implementation of reservation
too. The technological advances have lowered the employment elasticities to
near zero, which means that there is not going to be a big space for reservation
within the prevailing system. The capacity of reservation to benefit dalits can
be gauged from the fact that less than 1.7% of dalits have benefited from it
over the last 50 years. Notwithstanding the justification of all pervading
reservation until the societal disability is removed by complete annihilation of
castes, the talk of catalyzing dalit bourgeoisie in some circles is not saying the
same. Emergence of dalit petty bourgeoisie through the reservation process
has already been problematic: although nobody can deny its potential utility to
dalit movement. But promotion of the adversary parasitic class within shall be
absolutely suicidal to the dalit interests. There is no alternative for a potent
dalit movement against the present system with neoliberal (globalization)
ethos. There is no alternative to incessant dalit struggle for creating a just
world order.