No job reservation in state-run firms post privatization

The Centre has assured private investors that they will not have to comply with caste-based job reservation after strategic disinvestment of the government’s stakes in state-run firms.

However, it will adequately protect existing employees, including those belonging to scheduled castes, scheduled tribes, and the physically handicapped, three people with direct knowledge of the matter said, requesting anonymity.

The government will negotiate the terms and conditions in the shareholders’ agreement (SHA) to ensure that once management control is transferred to a private entity, it adequately protects staff. Enforcing job quota is not desirable or legally possible, the people added.