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UP introduces voluntary reservation in private sector

BS Reporter  |  Lucknow 

In a unique formula to implement reservation in the private sector, government has introduced voluntary reservation for backward classes in the private sector.
Under the proposed formula, private sector firms that introduce reservation will be able to avail of several tax and other benefits to set up their units. This is the first time a state is implementing reservation in the private sector through a voluntary agreement in return for tax benefits.
According to the proposal, private investors who want to avail of the tax benefits will have to enter into an agreement with the government to implement the 30 per cent reservation in their establishments.
Of the quota of reservation, 10 per cent should be reserved for Scheduled Castes, 10 per cent for Other Backward Classes and backward religious minorities and the remaining 10 per cent for economically weaker sections of the upper castes.
The decision was taken in the state cabinet meeting here today. Shailesh Krishna, principal secretary to the chief minister, said this voluntary reservation scheme would also be applicable in industrial units set up with the assistance of the government, educational institutions, infrastructure facilities, service sector projects and disinvested units. The policy will be applicable only for new units to be set up in the state.
"It is not a law but an understanding between the government and the investors and it is totally voluntary," Krishna said. He said an investor not interested in implementing the reservation would not be given any tax relief or benefits by the government.
The proposal says those industrial units and projects in which the state government or any of its departments or agencies has provided the land, grant, property or any other assistance or facility, will have to go in for voluntary reservation. The department concerned, along with the labour department, will monitor the implementation of the scheme.

First Published: Sat, August 11 2007. 00:00 IST