Karnataka govt puts on hold Bill mandating local jobs quota in pvt sector
The proposed Bill faced a strong backlash from various quarters which warned this would result in companies shifting from Karnataka to other states.
The Karnataka government has decided to hold back the Bill that would make it mandatory for all private establishments to hire local Kannadigas.
In a post on the social media platform X, Karnataka Chief Minister S Siddaramaiah said the Bill was still being drafted and deliberated on and the final decision will be taken after a comprehensive discussion in the next cabinet meeting.
The Bill received a strong backlash from industry bodies and notable corporate personalities including former Infosys board member TV Mohandas Pai and Biocon Chairman Kiran Mazumdar-Shaw. Industry body NASSCOM too strongly opposed the draft Bill and voiced concerns about its impact on the state's technology industry.
The Bill also received reactions from neighbouring states, especially Andhra Pradesh, where the state’s IT Minister Nara Lokesh invited NASSCOM members to invest in the state, saying on X that it has got the “best in class” facilities.
The Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024 mandates 50% reservation for administrative posts and 75% reservation for non-administrative posts for Kannadigas in private industries and other organisations.
NASSCOM highlighted that a people-dependent industry like IT and technology will be deeply impacted and reminded the government this segment contributes 25% to the state’s GDP.
Edited by Kanishk Singh
