Thursday, August 25 2005 14:55 Hrs (IST) - World Time -

New Delhi: Strongly defending the suggestion for allowing private employment exchanges in the country, Prime Minister Manmohan Singh today (August 25, 2005) said it would introduce a "measure of competition" in the job information service.

Intervening during the Question Hour in the Rajya Sabha, he said employment exchanges and placement centres have existed in the public sector for a long time and observed that they "can do no harm to the country as a whole."

Responding to a spate of supplementaries on a question relating to privatisation of employment exchanges, Singh said employment information service was an "integral part" of matching demand and supply of various jobs and skills.

Earlier, in reply to the main question, Minister of State for Planning M V Rajasekharan said the document on the Mid-Term Appraisal of Tenth Plan suggested that the Employment Exchanges Act should be amended to allow private employment exchanges to provide 'job placement services' to private and public sector and government establishments, and to collect the data on job opportunities.

This triggered a spontaneous reaction from the Opposition benches and some Left party leaders too supported them, questioning the rationale behind allowing private employment exchanges.

The Minister informed the House that there were 918 private placement agencies in 19 states and union territories and most of them were in Maharashtra, Rajasthan, Uttar Pradesh, Bihar, Gujarat and Delhi.