The central Government has launched various schemes and undertaken several measures, such as the following, for welfare of the OBCs.
1. National Backward Classes Finance and Development Corporation The National Backward Classes Finance and Development Corporation [NBCFDC] was set up by the Govt. of India under the then Ministry of Welfare on 13th Jan. 1992 as a company [not for Profit]. The objective of this Corporation is to provide concessional finance to members of the backward classes living below the poverty line for their socio-economic development. The Corporation provide them loans for income generating schemes. The Corporation provides financial assistance in terms of loans/grants to the eligible beneficiaries in the following sectors: agriculture and allied; artisans and traditional occupations; technical trades; small scale industries and transport services.
2. Various Schemes Launched : The following schemes were launched for the welfare of the OBCs by the Govt. of India.
(i) Pre-Examination Coaching: The objective of the scheme is to coach candidates belonging to OBCs to enable them to compete in various competitive/entrance examinations. Candidates whose arents/guardians’ total annual income is below Rupees one lakh are eligible for this.
(ii) Hostels for OBC Boys and Girls: The hostels under the schemes will be constructed in States/ UTs having a large OBC population but inadequate hostel facilities. The hostels will be constructed for middle, secondary, college and university level students. At least 1/3 of the hostels to be borne by the State Govt.
iii) Pre-Matric Scholarship for OBCs: Scholarship award will sanctioned to students, whose parent’s annual income does not exceed Rs. 44,500/=. The scholarships will terminate at the end of Class. X. The scholarship will be paid for 10 months in a year the scholarship will be applicable to the institutions recognised by the concerned State Govts./ UTs. The central assistance will be 50%.
(iv) Assistance to Voluntary Organisation for Welfare of OBCs: The scheme involves voluntary sector to improve educational and socioeconomic conditions of the OBCs, that is, to get them gainfully employed. Assistance will be given to establish centres and develop services which equip the OBCs to start income generating activities.The quantum of assistance is determined on merit by the OBCs to start income generating activities. The quantum of assistance is determined on merit by the Govt. of India, which may be up to 90% of the approved expenditure.
3. Reservation Facility to the Backward Classes
Reservation is a part of our Constitution which is intended to create equal in opportunities among Indians belonging to groups unequally placed in the social hierarchy. This Reservation has three principle components.
(i) Reservation of seats in legislative houses: Reservation of seats in the legislative houses on the basis of social backwardness is provided only for the SCs and STs. Explicit constitutional provision is made for seats in the Lok Sabha, Rajya Saba, Vidhan Saba and Vidhana Parishads.
Laws relating to local bodies have incorporated it as a normal as a normal legislative practice.
(ii) Reservation in jobs in Govt. and Public-Sector Units: This Reservation operates in All India Services, Central Govt., State Govts. and Govt. owned and managed Public-Sector Units and Institutions. Reservations exists in all these for the SCs and STs, to the tune of 15% and 7.5% respectively. Several State Governments have introduced reservation for the OBCs also. In fact, some have demanded reservation in the private sector also.
(iii) Reservations in admission to courses in professional colleges and other institutions of higher learning: Reservation of admission is found in the Govt. owned and aided educational institutions of professional and higher learning, such as engineering colleges, medical colleges.
Reservation for SCs and STs exists in all institutions. Several State Government such as Karnataka, Kerala, Tamil Nadu, for instance, have also provided reservation for the OBCs.