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SSI wants PM to reject Montek, McKinsey reports

R.Y. Narayanan

COIMBATORE, Nov. 3

THE all-India Convention of Small-Scale Industries has appealed to the Prime Minister to reject the ``prejudicial'' reports of the Task Force headed by former Finance Secretary, Dr Montek Singh Ahluwalia, and the international consulting firm McKinsey.

A resolution adopted at the convention here announced the constitution of a committee of experts for evolving an alternative approach for giving a boost to employment generation by the SSI and unorganised sectors.

It pointed out that the report of the Task Force on Employment Opportunities constituted by the Planning Commission under Dr Ahluwalia and the McKinsey report had recommended withdrawal of reservation for the SSI sector and permission be given for FDIs i n areas where the SSIs had a presence.

The resolution said the task force's recommendation was ``totally prejudicial'' not only to the SSIs but also to the general national economic interests. It wondered why the SSI, agriculture, transport or trade sectors were denied representation in the t ask force whereas members from CII and FICCI were accommodated.

The resolution cited the contradictory views expressed by the task force itself with regard to employment generation by the organised sector vis-a-vis the unorganised sector.

The task force had stated that the organised sector will not be able to generate sufficient employment to meet the demands of the unemployed. It had also admitted that while the organised sector accounted for less than 10 per cent of employment, it was t he unorganised sector which contributed a lion's share of employment generation.

The resolution also said that the task force itself conceded that even if the report was implemented, it would still be the unorganised sector that would be a major source of employment and despite the importance it was given in the post-liberalisation e ra, the share of the organised sector in national employment has shrunk by more than three per cent.

However, the resolution said the task force report had sought to ``trivialise the employment potential'' of the unorganised sector. It appealed to the Union Government to reject the recommendations of the task force. It decided to depute a delegation of SSI associations to meet the Prime Minister and others.

It took exception to the other reported recommendations of the task force concerning sectors like agriculture, road transport, retail trade, etc., and wanted these recommendations too to be rejected.

The convention was jointly organised by the Swadeshi Jagran Manch and Coimbatore District Small Industries Association (CODISSIA).