Karnataka job reservation Bill row: With NASSCOM expressing disappointment over a Bill passed by the Karnataka Cabinet to reserve jobs for locals in private industries, Andhra Pradesh’s Minister for Information Technology (IT) and Electronics, Nara Lokesh, invited investors to relocate their businesses.
The Karnataka Cabinet on Tuesday (July 16) approved a draft legislation setting aside 50 per cent of managerial roles and 75 per cent of non-managerial roles for local candidates in industries, factories, and other commercial establishments. However, facing a severe backlash, the Congress government in Karnataka on Wednesday (July 17) decided to put the bill on hold.
Nara Lokesh invites investors to Andhra Pradesh
Nara Lokesh on Wednesday took to X to invite investors after the apex body of the IT sector, NASSCOM, voiced its disappointment and expressed concern over the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. NASSCOM stated that restrictions could force companies to relocate as local skilled talent becomes scarce.
“We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI, and data centre cluster at Vizag,” posted Lokesh, who is the son of Chief Minister N Chandrababu Naidu.
“We will offer you best-in-class facilities, uninterrupted power, infrastructure, and the most suitable skilled talent for your IT enterprise with no restrictions from the government. Andhra Pradesh is ready to welcome you. Please get in touch,” he added.
Reservation bill on hold
The Karnataka government put the reservation bill for Kannadigas in private firms on hold amid fierce criticism from business leaders and tech tycoons. The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was cleared by the state Cabinet on Monday and was expected to be tabled in the Assembly on Thursday.
"The bill approved by the Cabinet to provide reservation for Kannadigas in private sector organisations, industries and enterprises has been temporarily put on hold. This will be revisited and decided in the coming days," a statement issued by the Office of the Chief Minister said on Wednesday.
Earlier, Karnataka Chief Minister Siddaramaiah also posted on X, "The bill intended to implement reservation for Kannadigas in private sector institutions, industries and enterprises is still in the preparation stage. A final decision will be taken after comprehensive discussion in the next cabinet meeting."
According to the Bill, "Any industry, factory or other establishments shall appoint 50 per cent of local candidates in management categories and 70 per cent in non-management categories."
Reacting strongly to the state government move, industry veterans objected to the proposed quota, calling it 'fascist,' and 'short-sighted.' Well-known entrepreneur and former Chief Finance Officer (CFO) of Infosys, TV Mohandas Pai dubbed the bill as regressive.
"This bill should be junked. It is discriminatory, regressive and against the constitution, @Jairam_Ramesh (Congress leader) is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of private sector? People have to take a language test?" Pai said on 'X'.
Biocon MD Kiran Mazumdar Shaw on Karnataka job reservation Bill
Pharma company Biocon Managing Director Kiran Mazumdar Shaw said, "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy."
ASSOCHAM, Karnataka co-chairman RK Misra said on 'X', "Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs.
Short-sighted."National Association of Software and Service Companies (NASSCOM) on Wednesday cautioned the government that "the restrictions could force companies to relocate as local skilled talent becomes scarce."
Karnataka's move was similar to a bill introduced by the Haryana government, mandating 75 per cent reservation in private sector jobs to the residents of the state. It was, however, struck down by the Punjab and Haryana High Court on November 17, 2023.
ALSO READ: Karnataka govt puts reservation bill for Kannadigas in private firms on hold amid outrage
ALSO READ: Karnataka Cabinet approves bill to mandate 100 per cent reservation for Kannadigas in private firms
