“Karnataka job quota to locals may force companies to relocate”: Software body Nasscom

Nasscom seeks withdrawal of contentious Karnataka quota Bill

Nasscom seeks withdrawal of contentious Karnataka quota Bill
Nasscom seeks withdrawal of contentious Karnataka quota Bill

Karnataka’s big move backing reservation for Kannadigas in pvt sector draws backlash

A day after the Congress rules Karnataka government approved a bill mandating reservation for locals in the private sector jobs, software body Nasscom has sought its withdrawal saying the provisions “threaten to drive away companies”. The controversial bill enforces 50% reservation for administrative posts and 75% for non-administrative posts for Kannadigas in private industries. Nasscom, representing India’s $200 billion technology industry, said the restrictions under the ‘Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill’ could force companies to relocate as “local skilled talent becomes scarce”.

“The bill’s provisions threaten to drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce,” said the IT industry’s top body.

The controversial bill, on the appointment of ‘local candidates’, says, “Any industry, factory or other establishments shall appoint fifty percent of local candidates in management categories and seventy-five percent in non-management categories.” If the candidates do not possess a secondary school certificate with Kannada as a language, they must pass a Kannada proficiency test as specified by the ‘Nodal Agency’, says the Bill, approved by the State Cabinet. The bill is slated to be tabled in the Assembly on Thursday.

Expressing serious concerns about the provisions of the bill, Nasscom urged the Karnataka government to withdraw it. Globally, there is a huge shortage of skilled talent, and Karnataka despite the large pool, is no exception, pointed out Nasscom. “For states to become a key technology hub a dual strategy is key – a magnet for best talent worldwide and focussed investment in building a strong talent pool within the state through formal and vocational channels,” Nasscom added.

Earlier, Chief Minister Siddaramaiah indicated in a post on X that the government would seek 100 percent reservation for Kannadigas in select categories. He later amended his post to omit the ‘100 percent’ provision after his post sparked a massive uproar. The Chief Minister also asserted that it is the government’s priority to look after the welfare of Kannadigas. “It is our government’s wish that the Kannadigas should avoid being deprived of jobs in the land of Kannada and should be allowed to build a comfortable life in the motherland. We are a pro-Kannada government. Our priority is to look after the welfare of the Kannadigas,” he said on X.

Recently the BJP-ruled Haryana government also came out with a similar controversial law, insisting on reservation in jobs in the private sector. But this law was quashed by the High Court. Karnataka’s move to appease the local vote bank is also expected to be questioned in Courts.

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