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LATEST NEWS UPDATES | Central fund to buy equity in Dalit firms likely

Central fund to buy equity in Dalit firms likely

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published Published on Dec 29, 2011   modified Modified on Dec 29, 2011

-The Times of India

 

Dalit Venture Capital Fund is the next big idea as the Centre looks to roll out 'procurement quota' in government purchases from small and medium enterprises (SMEs).

The Fund would seek to buy equity in Dalit companies to provide capital support as investment. The Centre is mulling creation of a special purpose vehicle or a capital support system to help develop entrepreneurs among scheduled castes and tribes. The fund is part of the bouquet discussed in a meeting called by social justice ministry with Dalit Chambers of Commerce and Industry (DICCI), and could be created with contributions from both private business houses and government.

According to sources, Planning Commission deputy chairman Montek Singh Ahluwalia is seized of the idea and had done some loud thinking in an earlier meeting. Rural development ministry's 'skill development programme' is likely to be used to help SCs/STs get into small scale manufacturing.

The ideas formed the core of the meeting convened by social justice minister Mukul Wasnik with DICCI, also attended by RD minister Jairam Ramesh and chairman of national commission for SCs P L Punia on Monday.

It was to get a fix on how the recently promulgated "procurement quota" was to be operationalized. The Centre recently decided that all ministries would make 4% of their annual purchase from micro, small and medium enterprises run by SCs/STs.

There have been apprehensions if dalit entrepreneurship was big enough to absorb orders of the magnitude of 4% of total government purchase, and if there is enough quality to compete with general business. The Centre wants to use the first three non-mandatory years of policy rollout to fill the entrepreneurial gap among dalits. It also wants to use bodies like DICCI to register dalit enterprises that can be used for purchases.

While 'procurement quota' is to be rolled out by ministry for SMEs, sources said the social justice ministry wants to be part of the process to ensure right inputs from dalit groups it interacts with on welfare front. It has asked micro enterprises ministry to place social justice secretary in the ministerial panel to oversee the process and monitor and evaluate the results.

Congress had made "procurement quota" a crucial weapon in its political quiver, with Rahul Gandhi flagging it in his speeches in Uttar Pradesh campaign.

The Times of India, 27 December, 2011, http://articles.timesofindia.indiatimes.com/2011-12-27/india/30561110_1_dicci-dalit-enterprises-social-justice


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