The Hindu Business Line : Create more jobs instead of seeking reservations, Assocham tells Govt

The Governor, Mr Surjit Singh Barnala, with the Assocham President, Mr Mahendra Sanghi (right) and the President of Fapcci, Mr O.P. Goenka (left), at the inaugural session of the seminar on `Corporate Social Responsibility' in Hyderabad on Tuesday. (Right) The Ramon Magsaysay Award winner and social worker Shantha Sinha was felicitated on the occasion. - A. Roy Chowdhury

Hyderabad , Oct. 26

THE Associated Chamber of Commerce and Industry of India (Assocham) and the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) have said that the country needed to accelerate growth to create eight to ten million additional jobs annually, instead of forcing the private sector on job reservations.

"The move would unnerve the trade and industry and drive away investment," Mr Mahendra K. Sanghi, President of Assocham, said.

Addressing a joint press conference here on Tuesday, Mr Sanghi said the chambers would work proactively with the Government to create more employment opportunities.

Mr Sanghi was in the city in connection with the chamber's managing committee meeting.

Supporting this view, Mr O.P. Goenka, President of FAPCCI, said it would be suicidal to impose reservations on the private sector. "We don't subscribe to the Government view. Merit, not caste, should be the main criterion," Mr Goenka said.

On disinvestment, Assocham said, "the disinvestment process should neither be sacrificed nor slowed down". Asking the Government to seek national consensus , Mr Sanghi called for a re-look into the whole issue. "It is not just loss-making bodies, some profitable units which don't have future should also go for disinvestment," he said.

A significant part of the disinvestment proceeds could be utilised to create an Infrastructure Equity Fund, addressing the financial needs of this sector. "This can be made an integral part of the `Investment Commission' and serve as a powerful financing mechanism for major infrastructure projects," the Assocham President said.

He said the country should not send any wrong signals on issues like labour, job reservations and investments. "Any wrong signals would hamper the flow of investments," he said.

Mr Sanghi said efficient infrastructure, reformed labour laws and simplified tax policies are needed to facilitate congenial atmosphere for investments.

He hoped that the upcoming winter session of Parliament would send the right signals about Government's intentions to go ahead with several key new legislations to facilitate the reforms process.

Referring to the huge foreign exchange kitty, the Assocham President said part of it could be invested in developing infrastructure.

Calling for reforms in labour laws, he felt that there should be greater flexibility in labour management, including closure of unviable units and employment of contractual labour.

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