Finding it difficult to enforce an employment quota in the private sector, the government has asked industry to consider giving 5 per cent of jobs to disadvantaged sections wherever fiscal incentives are given.
In a letter to the leading business chambers — CII, Ficci and Assocham — the industry department has sought their views on the issue. The letter, dated July 14, was a follow-up of the meeting between the government and chambers in April this year on affirmative actions.
Department of Industrial Policy and Promotion Secretary R P Singh had suggested in the April meeting that, “while it may not be possible to insist on a quota in the private sector, wherever the government was giving incentives to the industry, a certain minimum, say 5 per cent, employment for disadvantaged sections may be insisted upon”.
Industry gets a variety of fiscal incentives which include export-related duty credit, area-specific income tax exemptions which are also extended on R&D budget of companies. Besides, the export income in the special economic zones and software technology parks are also exempted from income tax.
The government has not been insisting on job reservation in the private sector, but it wants the industry to take affirmative action in favour of underprivileged sections of the society.
A high-level group headed by a PMO official has been interacting with industry on the issue. Industry, on it part, claims it has several initiatives for training and employment of scheduled castes and scheduled tribes from the weaker sections of the society.
CII has come out with reports showing some of its member-organisations have been working on affirmative action.
