Bengaluru | The Karnataka government on Wednesday 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 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'.
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 R K 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."
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.
Amaravati | Andhra Pradesh IT, Electronics and Human Resource Development Minister Nara Lokesh on Wednesday extended an open invitation to NASSCOM members to set up shop in the state, following concerns raised on neighbouring Karnataka’s proposal to reserve certain jobs for Kannadigas there.
The National Association of Software and Service Companies (NASSCOM) expressed disappointment over the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.
The IT industry body observed that the restrictions mandated by this bill "could force companies to relocate as local skilled talent becomes scarce".
Amid this backdrop, Lokesh welcomed IT, IT services, Artificial Intelligence (AI) and related companies to relocate and expand in Andhra Pradesh.
“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,” he said in a post on social media platform X.
Promising best-in-class facilities, the IT minister offered "uninterrupted power, infrastructure and the most suitable skilled talent" with "no restrictions from the government".
“Andhra Pradesh is ready to welcome you. Please get in touch!” Lokesh added.
