Will support whatever regulations, guidelines come: Infosys CEO Parekh on draft K'taka reservation bill
The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024 was cleared by the state Cabinet earlier this week and was scheduled to be tabled in the Assembly on Thursday.
will comply with whatever regulations and guidelines Karnataka comes up with, a top company official said on Thursday on the proposed reservations for locals in private firms in the state.
Infosys employs over 3.15 lakh people at present across the globe.
"We are planning to work with all the regulations of the state and central governments. We will work on, we support whatever regulations and guidelines will come," Infosys CEO Salil Parekh said.
"We'll wait and see what they look like as time develops, but our approach in general is to make sure we are aligned to the new laws and regulations that come out," he added.
The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was cleared by the state Cabinet earlier this week and was scheduled to be tabled in the Assembly on Thursday.
The bill proposes that "any industry, factory or other establishments shall appoint 50% of local candidates in management categories and 70 per cent in non-management categories". It has now been put on hold amid fierce criticism from business leaders and tech tycoons.
IT Industry body National Association of Software and Service Companies (NASSCOM) has 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% 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.
Decacorn fintech firm PhonePe CEO Samir Nigam called the proposal a "shame" in a social media post.
"I am 46 years old. Never lived in a state for 15+ yrs. My father worked in the Indian Navy. Got posted all over the country. His kids don't deserve jobs in Karnataka? I build companies. Have created 25000+ jobs across India! My kids dont deserve jobs in their home city? Shame," Nigam said on X.
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".
Infosys net profit up 7% in Q1, projects higher revenue growth for FY25
"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 on X said, "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."
Edited by Megha Reddy
MOST VIEWED STORIES
