"Still In The Preparation Stage": Karnataka Halts Quota Bill For Private Jobs

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"Still In The Preparation Stage": Karnataka Halts Quota Bill For Private Jobs

Karnataka Chief Minister Siddaramaiah said the contentious draft bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage. He added that a comprehensive discussion will be held in the next cabinet meeting to make a final decision on the bill. The bill, which aims to grant 100% reservation for Kannadigas in all Group C and Group D jobs in private companies, has invited criticism from industry bodies and political parties after the cabinet gave approval for it on Wednesday. As per the provisions in the bill, reservation will be capped at 70% for non-management roles and 50% for management-level employees.

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.