Saturday, 28 January 2012

Employment Generation: DMK’s Multi-pronged strategy

The scourges of mass unemployment and underemployment are the biggest of all problems that afflict almost all countries in the world – developed and developing. In fact, they are the root cause for all the other social evils and curses. The recent unprecedented global slow down and credit crisis, supposed to be worse and far-reaching than the global crisis of 1930s – have accentuated the burden of these countries. However, economists agree that India and China by and large remained unaffected, the latter by its sheer economic potential and bloom and the former on its strength of a vibrant public sector. Even within the country, Tamil Nadu continued to remain as an island of sustained industrial growth and Deputy Chief Minister Thiru M.K.Stalin, who also holds the Industries portfolio, was justified in claiming recently that the global economic slowdown had no impact on the State’s steady growth. Tamil Nadu has given a double whammy back to recession now, having not only exceeded estimates of a 20 per cent growth in IT exports in 2008-09, but having added 41,000 jobs during year. The final tally released by the TN IT department showed a 29 per cent growth in software exports from the state at Rs.36,860 crore in 2008-09 over Rs.28,420 crore in 2007-08. It was Rs.20,658 crore in 2006-07 when the growth rate was 37 per cent over 2005-06 when the ADMK government was in office. The story was the same in manufacturing sector also.
Is this achievement a miracle? Certainly not. It was due to the sincere commitment and far-sighted vision of the Kalaignar government that have accrued in sustained industrial growth, employment generation and all-round prosperity in the state. Although the New Economic Policy of the Government of India was unveiled in 1991, the notoriously corrupt and autocratic regime of Jayalalitha during 1991-96 absolutely failed to reap the benefits of the new policy and keep the doors of the state wide open for attracting investments. The proactive policies and hassle-free transparent procedures added to a healthy administration of the DMK government between1996-2001 and since 2006 constituted milestones in the course of industrial development in the state.
In a mixed economy like ours, the government and State-owned enterprises are considered ‘model employers’, both in terms of investments and employment generation. But the previous regime of Jayalalitha during 2001-06 imposed ban on recruitment to government departments and government undertakings in the name of enforcing fiscal discipline to tide over so-called financial crisis, thereby throttling employment opportunities for lakhs of youngsters. The thoughtless appointments of government employees and teachers on paltry consolidated pays and no security of jobs encouraged the private sector also to resort to anti-worker policies and practice. Jayalalitha’s ‘commission regime’ put off potential investors from the state. The lengthy list of companies which repelled away from Tamil Nadu and went to some other states for their investments includes some international majors. A Russian company which submitted its tender for a desalination plant filed a case in Madras High Court complaining of those in the helm of affairs demanding a hefty commission for approval.
The DMK, which assumed office in 2006, had the onerous task of reversing the negative trends that set during the previous ADMK regime. In its election Manifesto for the 2006 Assembly elections the Party promised:
         To the educated unemployed youth, who have not got any job even after registering in Employment Exchange, unemployment allowance will be given till they get a job at the rate of Rs.150 p.m. for those who passed X standard, Rs.200 p.m. for those who completed XII standard and Rs.300 p.m. for graduates.
         For the youth who have been affected by the age limit ceiling and lost opportunity to get a job on account of the ban on recruitment imposed by ADMK regime, age limit will be relaxed.
         We will fill up the three lakh vacancies caused by the ban on recruitment during ADMK regime.
         As computer training is inaccessible to the youth in villages, computer instructors will be appointed in villages and a scheme of free computer training will be implemented.
         By making use of the progress, Information Technology, we will make efforts to set up I.T. Parks in Coimbatore, Trichy, Madurai, Salem and Tirunelveli and increase employment opportunities.
         We will find ways to establish Business Processing Outsourcing Centres in all districts.
As of any other electoral promise, Kalaignar government fulfilled all those promises within a year of assuming power. The ADMK regime by its G.O.Ms.No.212 of 29.11.2001 ‘issued orders barring the filling up of vacant posts in the State and Subordinate services by direct recruitment, except in respect of certain categories of posts considered essential, such as Teachers, Doctors and Police Constabulary. Vacancies for teachers were partially filled up by recruitment on temporary basis on consolidated paltry pays of Rs.3,000-4,000. In the very first session of the Assembly after the DMK assumed power, the Governor, in his address on 24.5.2006, among others, announced that the upper age limit for entering into government service would be relaxed by five years, to enable the unemployed youth affected by the ban on recruitment, to apply for government jobs. The announcement was given effect by a G.O.Ms.No.98 dated 17.7.2006 and within one year 2,28,149 persons were appointed in government jobs and the recruitment process had become a routine now whenever vacancies arise. During the previous rule even compassionate appointments were withheld and the DMK government had to clear this backlog too besides regularizing the services of about one lakh teachers on time scale from the temporary appointments to fill vacancies and for additional posts which have become a continuing affair. Even now, notifications have been issued for recruitment of 13,753 more employees for Nutritious Meals Programme and Integrated Child Development Services. Even though they are not full-time government employees, Kalaignar has implemented a special time scale, promotions, retirement benefits and announced a host of other benefits for these workers at their conference held recently.
In order to attract investments into the various sectors of the State and thus contribute to the development of the economy as a whole and generate employment opportunities, the DMK government had made several policy announcements. These policies have unveiled a road map and graphed a trajectory for bolstering the industrial climate of the state and remove various road blocks which hampered the industrial expansion of the state. These policy documents also envisaged the investment incentives and schemes for the investors.
The major being the Industrial Policy, announced with a mission to accelerate human development in Tamil Nadu by maximizing investment, output, growth, employment and manufacturing competitiveness through infrastructure and human resources development in industries and services sectors. The key objectives of the Industrial Policy are to:-
Position Tamil Nadu as the most attractive investment destination.
Facilitate industry capturing a larger share of world trade in goods/services.
Reform regulatory processes and remove procedural hurdles in business.
Enable integration of existing industrial clusters with global supply chains.
Build efficient and dependable industrial infrastructure.
Develop human resources and intellectual capital to world standards.
Encourage symbiosis with SMEs in major industry clusters.
Another important policy being the Information Technology Policy, which has the vision of putting a smile of prosperity on the face of every citizen of Tamil Nadu by leveraging Information Technology (IT) to create value and wealth for a knowledge-based State. The key objectives of the policy are to:-
Establish the state as the destination of choice for IT investments
Upgrade the quality of life for the citizens through e-governance and IT applications in government.
Empower people in the rural areas so as to bridge the digital divide.
Develop research and development initiatives.
Promote use of Tamil in information technology.
Similarly, the Information Technology Enabled Services (ITES) policy has been announced with the vision of making Tamil Nadu the Global ITES Capital; attracting increased foreign direct investments; creating large-scale employment opportunities and adding value and wealth by leveraging the inherent strength of the State. Its objectives are to:-
    Get the maximum global ITES investments to Tamil Nadu
    Develop Human Resources specific to ITES Sector
    Create world class infrastructure for IT & ITES and an enabling frame work for protection of intellectual property and data
    Generate employment and other ITES opportunities in major cities in Tamil Nadu
    Provide a conducive environment for the sector by reducing regulations and increasing opportunities.
Besides, a Biotechnology Policy has been announced with the objective of utilising the resource base of the State for its overall economic development. As per the policy, the Government of Tamil Nadu aims to facilitate the establishment of Biotechnology Enterprise Zones (Bio-Valleys) along the lines of Silicon Valley to exploit the bio-resources of the State. Also efforts will be made to encourage the establishment of different types of biotech entities consisting of research organisations, service providers, as well as companies which will commercialise the new products and processes.
All these policy initiatives added to the advantages of the availability of a pool of skilled manpower, road, air and port connectivity, a favourable industrial climate and healthy industrial relations and the vision of the political relationship and its easy accessibility have made Tamil Nadu as the most attractive and favoured investment destination in the country. The outgoing Industries Secretary Thiru M.F.Farooqui, who played key role in bringing in investments and in shaping ambitious projects of Kalaignar and Thiru Stalin, had acknowledged that Kalaignar’s keenness to bring in more investments and create more employment opportunities was the main reason for the state’s success. The state has attracted Rs.30,512 crore investment in 2008-09 bettering the target of Rs.30,000 crore.
As a successful outcome of the DMK government to increase employment opportunities during the past three years, entrepreneurs had come forward to establish 29 new industries with an investment of Rs.37,595 crore with an employment potential of over two lakh persons till the end of year 2008. Global majors in heavy vehicle production like Daimler–Hero, Ashok Leyland–Nisson, Ceterpillar and in automobile parts like Delphi, Allison, car manufacturers like Hyundai and Ford, electronic goods manufacturers like Dell Computers, Motorola, Samsung and Nokia-Siemens have established their manufacturing units here. Information Technology Park has been established in Coimbatore and steps are being taken to establish IT Parks in Madurai, Tiruchi, Tirunelveli, Salem and Vellore, of which the construction of first three will be completed by the year end.
The State’s IT export sector employed 2.85 lakh persons in STP units and 45,481 in IT and SEZs, as on March 2009. The employees’ strength in STP stood at 2.44 lakh last year, indicating a job addition of 41,020. Since IT SEZs have also been a recent phenomenon, 48,481 employees in SEZ units have all been added up in these two years.
Another area of key concern of the DMK government was generation of rural employment avenues. It had most effectively utilized the National Rural Employment Guarantee Scheme (NREGS) of the UPA government. The NREGS has done wonders to uplift the rural poor by guaranteeing them a decent daily income of around Rs.80 earlier and now Rs.100 after the UPA government increased the quantum of daily wage under the scheme.
TN is the only state in the country to carry out NREGS as pristine pure and keeping to the main agenda, which is to keep the contractor and the machines out. Other states have degenerated as contractor-driven whereas it has ensured that the contractor is kept out and with that, the politician too is out.
More than 100 panchayat presidents were dismissed by the concerned district collectors on finding that they had misused NREG to make money. The government has been ruthless while tackling fraud.
The big farmers-SSI lobby repeatedly targeted the NREG scheme as it took away their labour force by offering decent wages. They were exploiting these labourers by paying around Rs. 50 a day for dawn to dusk toil in the fields and factories, but NREG offers far better wages and reasonable working conditions.
The NREG works de-silting canals and deepening tanks ensured that water reached the tail-end farms and there was no flooding. Several irrigation canals in the delta area and elsewhere have been cleared of their wild-growth and other debris to create smooth and deep channel for carrying the rainwater to tail-ends without flooding the fields and villages.
The spending on wages for beneficiaries under the scheme in Tamil Nadu has crossed Rs.1,200 crore so far this year, and the state may exceed Rs. 2,000 crore for 2009-10. This would be two times the expenditure of Rs. 990 crore last year.
The State has logged 16 crore person-days involving 30 lakh households, and the wages involved have been mainly disbursed in cash. The Centre is insisting that it would release funds for the scheme only if wage payments are made only through bank or post office accounts, but Tamil Nadu has voiced concern over the move.
The State government feels it is on sound legal footing when it opposes the idea of making bank payments compulsory. The NREGS Act itself permits payment of wages in cash. Section 23 of the Act makes it clear that all payments of wages in cash and unemployment allowances shall be made directly to the person concerned and in the presence of independent persons of the community on pre-announced dates.
Payments through bank or post office accounts would not solve the problem of ‘ghost workers’ and might even worsen it. It will only aggravate the problem as village panchayat presidents or staff can quietly credit payments to bogus beneficiaries.
Deputy Chief Minister Thiru M.K.Stalin had recently written to Union Rural Development Minister Thiru C.P.Joshi listing the practical difficulties in forcing rural workers to open bank accounts and making them travel long distances for withdrawing their payments. The Centre is yet to respond to the state’s concern.  Making bank payments mandatory would create discontent among NREGS workers and deny timely wages to them, Thiru Stalin had said, and expressed fears that the scheme itself might be derailed as a result.
The most innovative and productive employment avenue envisaged by Kalaignar during his third Chief Ministerial period in 1989-91 is the Women Self-Help Groups scheme. Soviet leader V.I.Lenin said, “Women constitute half the sky”; but the productive force of half the population of our country is locked up in mundane domestic chores and child bearing and rearing. Breaking this traditional and conservative role of women in our feudal society and in fulfillment of the vision of Thanthai Periyar and Mahakavi Bharathiar, Kalaignar unveiled their ambitious scheme which aims at emancipating and empowering women, unleashing their potential not only for augmenting their family income but also join the mainstream workforce of the country and contributing their might in national economic development.
Ever since he took over this assignment when he became Minister in the year 2006, Thiru Stalin evinced keen interest and played an active part in enlarging the scope of these SHGs quantitatively and qualitatively. Now with a strength of 65,72,000 members, the 4,12,104 Women SHGs in Tamil Nadu have become a great movement. The DMK government strengthened the distribution of revolving funds for these groups and increased daily allowances during the training period for the members of SHGs. It has also instituted Manimekalai awards for best performing SHGs, panchayat-level federations of SHGs and other awards. They are enjoying tremendous patronage of the DMK rule can be seen from the fact that Rs.201 crore in 3 years had been given as revolving fund while the previous ADMK regime allotted only Rs.76 crore in five years. Likewise bank loans to the tune of Rs.4,716 crore was given to SHGs as against Rs.1,644 crore of loans during five years of ADMK regime. This amount constituted 20 per cent of loans released across the country to SHGs, according to Union Minister Thiru P.Chidambaram, who recently lauded the performance of the State government in promoting these self-employment groups. They are repaying bank loans in time and the recovery rate is 99 per cent. The WSHGs in Tamil Nadu hold a deposit of about Rs.2,500 crore. These groups are now functioning in urban centres also.
It is heartening to note that these women SHGs have established their entrepreneurial skills both in manufacturing/value addition and marketing. For example, the SHGs formed by women of fishermen community in the seashore areas of Chennai recently organized an exhibition of value added fish food products that attracted large number of foreign-tourists and women from upward moving families. A chain of hygienic and tasty food outlets is being run by transgenders SHGs in Salem. Another WSHG is producing sanitary napkins at affordable prices for poor women.
The DMK government has also set up youth SHGs and in one year 16,269 groups benefiting 2,48,180 youngsters were formed. It has appealed to the youth of TN to join in more and more SHGs and get benefited by self-employment. In keeping with the electoral promise, the Kalaignar government is implementing the scheme of monthly financial assistance to educated unemployed youth at the rate of Rs.150 Rs.200 and Rs.300 p.m. for those who have studied upto 10th standard, HSC and graduate level respectively, thereby helping them to apply for vacancies, pay recruitment test fees and to buy books to prepare themselves without causing burden to their parents.
The Tamil Nadu Adi Dravidar Welfare Department in association with the TAHDCO conducted an Airhostess training course for Dalit girls and they got placements in various Airlines. The department also organized training courses in fashion designing in association with the National Institute of Fashion Technology (NIFT).
The Social Welfare Department in association with the Confederation of Indian Industry (CII) will organise a job fair for persons with disabilities on coming December 15 in Chennai.
Union Minister for Chemical and Fertilisers Thiru M.K.Alagiri is keen on developing industries in southern districts and during his tour of Indonesia he met some leaders of the industry and could secure a tractor spare parts manufacturing unit near Melur whose officials recently visited the proposed site.
Another innovative programme for availing employment opportunities carried out at the individual / party organizational level is the Kalaignar 85 and Kalaignar 86 Job Fairs organized by Poet Kanimozhi MP in coordination with district DMK functionaries.
It began as an experiment in June last year at Kariyapatti, the largest village in School Education Minister Thiru Thangam Thennarasu’s constituency. By December 2008, job fairs held in rural areas had provided jobs to about 50,000 unemployed youths spread across five districts.
“We wanted to do something to realise the ideals that my father and Chief Minister stood for to coincide with his birthday celebrations,” recalled Poet Kanimozhi, MP and main organiser of ‘Kalaignar 85’ job fairs. “All his life, my father has fought for equality for all and for the rights of the oppressed and the backward classes. Taking the job fair to a rural area or even a district headquarters is one way to make sure that at least the educated unemployed youth have a fair chance,” she said.
Because of her interaction with a cross section of people, ranging from job-seekers to industrialists, Poet Kanimozhi says she had realised that there was a gap that her party could help to bridge. Many industries did not find suitable hands and the State had significant numbers of educated unemployed. Companies sought people for jobs that ranged from software professionals and managers to watchmen and drivers.  “We merely provided a forum to bring the job-seeker and the company together in an environment that is not intimidating to the job-seeker,” she said.
‘Kalaignar 85’ last year travelled to Nagercoil (August), Vellore (September), Udhagamandalam (October) and Virudhunagar (November). The largest number of applicants was in Vellore – 65,272.  “In Vellore, one boy had four letters of offer. He came to me asking which he should choose,” recalled Poet Kanimozhi.
When he was briefed about the job fairs, Kalaignar had one question: “What happens to those who do not find a job?” The organisers explained to him that the orientation was done by experts from a cross section of the industry – from NASSCOM to the local security agency. The candidates were clearly told that if they met the qualifications, they would get the job. There was no backdoor entry, no recommendation. “When an applicant sees for himself the transparent manner in which the entire process is conducted, they will not have any doubts in their mind,” said Thiru K.K.S.S.R.Ramachandran, Minister and DMK Virudhunagar District Secretary.
Thiru Thangam Thennarasu, Minister for School Education, said the job fairs were completely non-political, even though they were coordinated by DMK leaders in districts.  “Kanimozhi is closely following the job fairs and had written to various national and State-level industry bodies such as the Confederation of Indian Industry (CII) and National Association of Software and Service Companies (NASSCOM),” the Minister said.
The potential of private sector was being tapped in view of employment opportunities generated out of Rs.46,000 crore investment coming to Tamil Nadu since the DMK came to power.
“The credit for job fairs goes to Poet Kanimozhi since it was her brainchild and she took it up as a social responsibility. Towns and tier-II cities stand to benefit immensely,” he added.
For instance, in the Vellore district job fair held in September, 17,000 candidates out of the total 30,000-odd job-seekers got jobs.  “There will not be any sort of discrimination in selecting candidates. We are also now contemplating to do data analysis and take remedial steps for candidates who could not get selected. The aim is to get as many jobs as possible,” the Minister said. The age group eligible for participation is 20 to 35 years. A total of 19,098 candidates have got job offers in the three-day Kalaignar 86 “employment opportunity camp” that concluded recently at Vadalur near Cuddalore. The selection process for another 8,017 candidates is under way. A total of 54,000 candidates from various parts of the district registered for the camp and of them 36,349 attended. They all belonged to three categories: A category (degree holders), B (diploma/certificate holders) and C (SSLC and Plus Two candidates). As many as 415 companies participated and selected 19,098 candidates, including a substantial percentage of women.  In the C category, the highest number of 11,055 candidates were selected followed by B category, – 5,772, and, A section – 2,271. She hoped that at least half of the 8,017 candidates whose applications were under process would get placements.
Altogether Kalaignar-86 job-fairs at various parts of the state evoked tremendous response from employers. It has helped to ensure over 54,000 youth to obtain job orders this year.
The DMK Youth Wing conference held at Tirunelveli in December 2007 presented to the government concrete suggestion to create employment avenues. For example it was noted that there was a need for three lakh drivers for running heavy vehicles and cars and demanded that uneducated youth may be imparted learning in driving. The suggestions are under the consideration of the State government.
In all, the multi-pronged strategy adopted by Chief Minister and DMK President Kalaignar for employment generation in Tamil Nadu, has paid rich dividends and has taken the State several steps ahead of others in turning it into a most productive and prosperous state, in which every citizen is a stakeholder!         


(06-12-09)           

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