Backlash over reservation for Kannadigas in private firms: Patil, Kharge assure consultations; Andhra Minister welcomes NASSCOM

Expressing deep concern over the bill, NASSCOM urged the Karnataka government to withdraw it as it will tarnish the state's global brand.

Published Jul 17, 2024 | 2:41 PMUpdated Jul 17, 2024 | 8:59 PM

Backlash over reservation for Kannadigas in private firms

Amid heavy backlash from private industry owners following its nod to introduce a bill aiming to reserve 50 percent jobs in management and 70 percent in non-management, and 100 percent jobs in C and D grade posts for Kannadigas, ministers MB Patil and Priyank Kharge has assured consultation with stakeholders before it is passed.

Responding to the criticism, Minister for Commerce and Industries, Infrastructure MB Patil assured to address the issues amicably and hold talks with Chief Minister Siddaramaiah.

The CM had earlier deleted a post on his X account, which announced giving the nod to the bill mandating 100 percent reservation for the C and D grade posts in private firms.

Minister for Electronics, IT/BT and Rural Development and Panchayat Raj, Priyank Kharge took to X to say that the state government will engage with all stakeholders to ensure “a favourable environment” that boosts investments and creates more employment opportunities.

“We have achieved these milestones and many more because our Government consistently engages with all stakeholders to draft policies and schemes that boost investments and create more employment opportunities. As always, we will consult with industries, industry bodies and thought leaders to ensure we foster a favourable environment for investments and job creation for locals while addressing the needs of the global workforce,” he wrote.

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NASSCOM expresses concern, Nara Lokesh welcomes it to Andhra

Meanwhile, expressing deep concern over the bill, NASSCOM urged the state government to withdraw it. In a press statement, it said, “The bill’s provisions will impact the tech industry, impact jobs, and tarnish the state’s global brand. We urge the state government to withdraw the bill. The bills’s provision threaten to reverse this progress, drive away companies & stifle startup’s when more global firms are keen to invest in the state.”

It also sought time with the Karnataka government to hold deliberations on the matter. Responding to its post on X about the press statement, TDP leader and Andhra Pradesh minister said that the state understands their disappointment and assured to welcome NASSCOM.

He wrote, “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.”

On Tuesday, 16 July, the Siddaramaiah cabinet approved a draft bill aimed at promoting employment opportunities for local candidates in industries, factories, and other establishments.

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, if passed, would mandate industries, factories, and other establishments to reserve a substantial proportion of jobs for local candidates.

Several renowned business people including Biocon executive chairman Kiran Mazumdar Shaw expressed discontent over giving the nod for the bill.

Also Read: Bill to reserve 50% in management, 100% in C&D group jobs for Kannadigas in private firms gets cabinet nod

‘Will clarify before passing the bill’

Responding to the criticism, Minister Patil said that he will hold talks with the Chief Minister and the Labour Minister before the bill is placed in the house to address the confusion and protect the interests of Kannadigas and private companies as well.

Minister MB Patil told reporters: “There are two parts as regarding C and D posts. Already industrial policy for those who take our incentives from the government are giving them jobs now. There is no dispute in that.”

“Interest of Kannadigas in Karnataka is paramount. Chief Minister has also tweeted regarding the C and D posts only. There is confusion with the industrialists and IT companies regarding the management and skilled posts,” added the minister.

He continued: While official briefing, they told me that if there are two skilled aspirants having the same merit then the companies have to consider Kannadiga. It is fair enough. There are some confusions.”

“I will reiterate that jobs for Kannadigas in Karnataka are paramount. They should not have any fear. The companies should not have any apprehensions or fear. We are going to discuss this,” Patil hinted at the government possibly relooking into the bill.

‘Will resolve this amicably’

Assuring that confusions will be addressed amicably, Patil said: “I along with the IT and BT Minister Priyank Kharge, Law Minister (HK Patil) will discuss with the chief minister (Siddaramaiah) and labour minister (Santosh Lad). We will resolve this amicably without comprising Kannadiga’s interest as well as industries’.”

“I have already held talks with the principal secretary, the chief minister and others. We will meet either today (Wednesday) or tomorrow (Thursday) and address this amicably. The IT companies and industries do not have to fear. I will assure the industries standards, talent and other aspects will not be compromised,” reiterated the Minister.

He continued: “We will find out a way and consult them also to ensure that their interests are also protected. We will also assure jobs to Kannadigas.”

“It is still in the initial stages. Now, it is only given a nod in the cabinet. It will again be discussed and has to be given a nod in the coming cabinet meeting. The bill has to be placed in the House. Tomorrow before the bill is placed, we will hold talks are resolve it,” assured Patil.

(Edited by Sumavarsha Kandula, with inputs from Mahesh M Goudar)

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