Karnataka Jobs Bill: NASSCOM Says "Disappointed", Nara Lokesh Responds: "Welcome To Vizag"
The Karnataka state government has approved a bill granting 100% reservation for Kannadigas in all Group C and Group D jobs in private companies. The reservation will be capped at 70% for non-management roles and 50% for management-level employees, as clarified by Labour Minister Santosh Lad.
National Association of Software and Service Companies (NASSCOM), a non-governmental tech body, expressed deep disappointment over the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. They highlighted the tech sector’s contribution to 25% of the state’s GDP and the potential negative impact on the industry and jobs. NASSCOM members are concerned the bill could force companies to relocate due to a shortage of local skilled talent.
“NASSCOM members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill. The bill’s provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state,” the tech body said in a statement. It also added that the restrictions could force companies to relocate as local skilled talent becomes scarce while demanding an urgent meeting for Industry representatives with state authorities to discuss the concerns and prevent the state’s progress from being derailed.
In response the statement by the NASSCOM, Lokesh Nara, Minister for Human Resources Development of Andhra Pradesh and leader of TDP, invited affected businesses to relocate to Vizag, promising excellent facilities and a skilled workforce without government restrictions.
Dear @NASSCOM members,
We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data center cluster at Vizag.
We will offer you best-in-class facilities, uninterrupted power, infrastructure and the most suitable… https://t.co/x2N0CTbnfp
— Lokesh Nara (@naralokesh) July 17, 2024
“We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data center cluster at Vizag. 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,” the minister said while taking a dig at Karnataka government’s decision.
Key Developments:
- Karnataka government approves 100% reservation for Kannadigas in Group C and D jobs.
- Private firm job reservation set at 70% for non-management and 50% for management roles.
- Labour Minister Santosh Lad confirms the reservation percentages.
- NASSCOM expresses disappointment and concern over the new bill.
- Tech sector contributes 25% of Karnataka’s GDP, housing significant digital talent.
- NASSCOM fears relocation of companies due to a lack of local skilled workers.
- The bill might hamper industry growth and affect Karnataka’s global reputation.
- NASSCOM urges the state government to withdraw the bill.
- Lokesh Nara invites businesses to relocate to Vizag, Andhra Pradesh.
- Andhra Pradesh promises superior facilities and an unrestricted skilled talent pool.
