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4% of govt purchases will have to be from dalit, tribal-run firms

NEW DELHI: Ahead of its battle with dalit czarina Mayawati, the Congress-led Centre has made it mandatory for all central bodies to make at least 4% of their annual purchases from small scale industries owned by dalits and tribals. The decision, a leg up for developing entrepreneurship among SCs/STs, came as part of the new public procurement policy cleared by the Union Cabinet on Tuesday which mandates Union ministries/PSUs to make 20% of their purchases from micro and small enterprises (MSEs). Of this, 20% will be done from MSEs owned by SCs and STs. Central purchases from MSEs is expected to be worth Rs 35,000 crore annually, of which Rs 7,000 crore would go to SCs/STs. The proposal was first reported by TOI on September 12. With a clutch of assembly polls coming up, it is no coincidence that the decision followed the sounding of campaign bugle in Uttar Pradesh where Congress crosses swords with the formidable Mayawati and where Rahul Gandhi has played an aggressive dalit card to corner BSP in its home constituency. Congressmen argued the decision would position the party stronger in its hunt for dalit votes. Its potential is seen as significant even in Punjab which has the countrys highest ratio of dalit population as also Uttarakhand. These states go to polls in February ahead of UP. According to sources, the SC/ST quota in government purchases was missing before social justice minister Mukul Wasnik stepped in. The Centre was ready for 10% quota but Wasnik is learnt to have pushed for quota in proportion with SC/ST population, roughly 24%. The prime minister agreed for 20%. The purchase quota follows affirmative action in the US where 30% of federal contracts give preference to minorities which include African-Americans and Latinos. The idea has held a serious pull with dalit activists who see it as an antidote to plateauing potential of job reservation, especially with demand for quota in private sector proving a non-starter.

                                                                                                               
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