New Delhi: The Karnataka government has put its decision to reserve jobs for locals in the private sector on hold following backlash from industry leaders and business heads who raised concerns over the possible fallout of the new law.
The Siddaramaiah-led Congress government had on Tuesday, July 16, approved ‘The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024’ in its Cabinet. The law, once enforced, would mandate private enterprises operating in the state to reserve 75% reservation for locals in non-management jobs and 50% for locals in management jobs. The government had said it would introduce the Bill in the upcoming Assembly session.
The news had industry leaders warning that the law would drive away investors and would cause irrevocable damage to the private enterprise in the state. Some said the move would “stifle startups”, The Indian Express reported.
Taking cognisance of the criticism, chief minister Siddaramaih said his government would take a relook at the bill. “The draft Bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage. A comprehensive discussion will be held in the next cabinet meeting to make a final decision,” he wrote on X (formerly Twitter).
State industries minister M.B. Patil appealed to the industry leaders not to panic, informing them that the Bill has been “withheld until further consultations and due diligence”. Priyank Kharge, state’s IT and biotechnology minister, also assured the business heads that “wider consultation” would be carried out before enacting any such law.
According to the Bill, a local candidate is defined as someone born in Karnataka, domiciled in the state for at least 15 years, and capable of speaking, reading and writing Kannada in a legible way.
To be eligible, candidates must have a secondary school certificate with Kannada as a language or pass a Kannada proficiency test conducted by a nodal agency notified by the government. If suitable local candidates are not available, industries and establishments will have to collaborate with the government to train local candidates within three years.
The Bill allows for the relaxation of these provisions in exceptional cases, but the percentage of local candidates cannot fall below 25% in management positions and 50% in non-management categories. Failure to comply may attract penalties ranging from Rs 10,000 to Rs 25,000.
