CII not for quota in private sector

By Sandeep Dikshit

NEW DELHI, APRIL 30. The country's leading industry association, the Confederation of Indian Industry (CII), is strongly opposed to reservations in the private sector on grounds that it will make Indian industry uncompetitive, specially in the global markets. ``Reservations will take away our competitive advantage vis-a-vis overseas companies. We can't artificially fit in people. If we are forced to reserve jobs in our companies, we will prefer that these workers sit at home and not attend office,'' the new CII president and noted industrialist, Mr. Arun Bharat Ram, told The Hindu.

``As entrepreneurs, we are sympathetic to the backward classes,'' but the arrangement cannot be institutionalised because it will distort the economies of scale of the private sector. The answer to responding to the needs of the socially and economically backward communities, he said, is economic growth, which will bring more jobs to people of all sections.

The CII president said while the industry was in favour of privatisation and removal of subsidies, it wanted the changes to take place with a human face. ``The main issue while closing or selling off public sector units is to prevent the loss of jobs. We are talking to trade unions, MPs and all political parties to convince them about the imperative of privatisation and disinvestment in public sector undertakings. No way can you be a different nation in a globalising world. But it has to be done with a human face.

``We have to find ways and means of protecting the public sector workers. If we can alleviate the pain (of loss of jobs), then privatising PSUs can become easier. We are telling the Government that the voluntary retirement scheme (VRS) should not be the only solution. Employees should be allowed to own stock in companies.''

Mr. Bharat Ram also recognises the fact that the main resistance to closure and selling off of PSUs will come from the younger workers. ``Once you strongly retrain the younger workers, the acceptance of privatisation will become much easier.'' He feels the proceeds should not be used for revenue deficit correction but earmarked for retiring foreign debt and other social causes.

Mr. Bharat Ram is careful to point out that the industry is per se not against subsidies if they are targeted to the right people. ``Why should subsidised fertilizer be given to rich farmers and low-priced diesel used by people like me for their luxury cars?'' He also believes subsidies should not be done away with overnight nor does he totally oppose the concept of financing social infrastructure through fiscal deficit.

``But unnecessary expenditure should be cut. Why doesn't the Government downsize itself? They have been talking about the need to cut expenditure but have not taken any concrete step,'' observes Mr. Bharat Ram.

While the CII will encourage the spread of the new economy, Mr. Bharat Ram was at pains to emphasise its close linkage with the old economy. ``The old and the new economies have to move together.

The old economy has to necessarily use the tools being made available by the new economy, whether it is the IT sector or the Internet. The new economy can enable the old economy reorient and restructure itself to become competitive world-wide. Otherwise, it will fall by the wayside.''

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Section  : Business
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