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Policy push for quota in pvt sector

The Government in its new industrial policy will provide tax sops and land subsidies to corporates that set up production units in remote districts with over 50 per cent SC and ST population.

india Updated: May 02, 2006 01:00 IST

The Government in its new industrial policy will provide tax sops and land subsidies to corporates that set up production units in remote districts with over 50 per cent SC and ST population. The government feels this will obviate the need for mandatory job reservations in the private sector -- against which India Inc had voiced its protest.

Sources said the 'all-inclusive' industrial policy, to be moved by Commerce and Industry Minister Kamal Nath around mid-June, has identified 60 such districts in eight states.

As per the proposal, companies setting up units in these districts will get high income-tax deduction -- up to 200 per cent -- on the annual wage bill. These companies will also get a holiday for the first ten years from payment of excise on units located in these areas.

The third set of concessions relates to land acquisition in these areas. Currently, there are restrictions in several states for acquisition of land for non-tribals' activities. The land acquisition norms will be relaxed and the government may also subsidise the land prices for the units.

By setting up these units, the government wants to achieve a three-fold agenda. One, industrialisation will reach remote areas. Secondly, at least some local people belonging to SCs and STs will get employment in these units or ancillary units that come up around the clusters. Moving industries to interior areas will also serve the government's political agenda -- of 'all inclusive growth' -- without the mandatory reservations.