Karnataka Government Backtracks on Controversial Job Reservation Bill Amid Industry Backlash

Siddaramaiah govt backtracks, puts Karnataka jobs reservation bill on hold for more 'deliberations'

Within minutes, the post was updated to say that the bill was in the preparation stage and a final decision would be taken after comprehensive deliberations in the upcoming Cabinet meeting. The development comes amid criticism from the business community. The loosely drafted 'Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill 2024' proposed to reserve 50 percent of managerial jobs, and as much as 70 percent non-managerial jobs for local candidates, or Kannadigas, in most private sector establishments. While stakeholders in various sectors have expressed their concerns over the proposed bill, the Opposition has called it a "diversionary tactic" to deflect attention away from the growing allegations of corruption against Chief Minister Siddaramaiah and the members of his one-year-old government. Karnataka is a popular investment destination, and comes second to neighbouring Maharashtra in terms of attracting foreign capital -- a resource it depends on to deal with the fund crunch, low inflow of grants by the Centre and decreasing share in central taxes, and to bankroll its welfare schemes and development projects. The Karnataka government's constant flip-flop on the issue has fuelled confusion around the bill, and even attracted attention from neighbouring states, like Andhra Pradesh, which are asking companies to invest there instead. Also Read: Industry bodies ask Karnataka govt to 'reconsider retrograde' bill proposing reservation for 'locals' One of the ministers in Siddaramaiah's Cabinet said that the bill was being opposed as it was drafted by the labour department without consulting the key stakeholders. "The bill is unlikely to come (be tabled) as it will deter potential investors," the minister told ThePrint, requesting anonymity. NASSCOM, the apex body representing India's technology industry, said in a statement that the provisions of the bill "threatens" to reverse the progress of the state and "drive away companies and stifle startups". Nara Lokesh, minister in the Andhra Pradesh Cabinet and son of CM Chandrababu Naidu, posted on X Wednesday, asking NASSCOM members to invest in Visakhapatnam. "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 skilled talent for your IT enterprise with no restrictions from the Government. Andhra Pradesh is ready to welcome you. Please get in touch!," Lokesh wrote. In response to Lokesh, Priyank Kharge, Karnataka's electronics, information technology (IT) and biotechnology (BT) minister, reassured NASSCOM that the state government was "just a call away", and concerns would be addressed. The Bharatiya Janata Party (BJP) has relentlessly accused Siddaramaiah of corruption in the ongoing session of the Karnataka assembly in Bengaluru. The chief minister has been accused of bending rules to benefit from allotment of high-priced plots in exchange for agricultural land in his home district of Mysuru. In another case, a member of his cabinet was forced to step down after allegedly diverting funds meant for the welfare of Scheduled Tribes (ST) from the state-run Valmiki Corporation. The Congress-led government has spent a lot of time last month only defending these allegations. The BJP has said that the new reservation bill is an attempt to divert attention. "This government and CM are facing a lot of allegations and just to cover up, he (CM) is coming up with all these things," C.N. Ashwath Narayan, senior BJP leader and former minister, told reporters in Bengaluru Wednesday. The U-turn by Siddaramaiah over the provisions of the bill indicates that the proposal was done in haste, BJP leaders have said. Siddaramaiah had himself posted on X Tuesday evening that the bill would provide 100 percent employment to "Kannadigas". However, according to the draft bill, 50 percent of management and 70 percent of non-management jobs would be reserved for "local candidates". A minister in his Cabinet has also said that the government will go back to the drawing board. M.B. Patil, Karnataka's large and medium industries minister, wrote in a long post on X that the government will hold "wider consultations" to safeguard interests of all stakeholders. "#Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialization. We will make sure that everyone's interests are safeguarded. The Industries are assured that they need not have any fear or apprehensions and can rest assured," Patil wrote. ThePrint had reported Wednesday that the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) was not even consulted over the bill. Several prominent voices from the IT, BT and startup sectors have voiced concerns over the bill, which they have called "retrograde". "I think it is a very regressive, unnecessary, draconian, unconstitutional, illegal bill," T.V. Mohandas Pai, former Infosys CFO and Chairman of Aarin Capital, told the media Wednesday. He also said that according to the proposal, a member of the nodal agency (government) would be present during recruitment processes of private companies and other establishments to ensure compliance. However, there is no explicit mention of this in the draft bill, even though the nodal agency would be responsible for compliance. The next cabinet meeting is scheduled to be held Monday, and it remains to be seen if the Siddaramaiah-led government will revise the bill to manage the expectations of all stakeholders or give it a quiet burial.

Industry Criticizes Karnataka's Local Job Reservation Bill

Bengaluru: Industry bodies and bigwigs on Wednesday slammed the Karnataka government's draft bill reserving jobs for locals in managerial and non-managerial roles, arguing that its provisions could lead to a flight of capital and companies from the state, and stifle the startup and tech ecosystems. IT industry body Nasscom urged the state government to withdraw the bill."The tech sector contributes 25% to Karnataka's GDP, it houses over 30% of the total GCCs and around 11,000 startups. It's deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, but also impact jobs, and the global brand for the state," Nasscom said in a statement. The bill's provisions, it said, threatens to reverse the progress the state has made, especially when more global firms (GCCs) are looking to invest in the state. Nasscom said it is seeking an urgent meeting for industry representatives with state authorities to discuss the concerns. The bill proposes that all industries, factories, and other establishments in the state reserve 50% of jobs in managerial roles and 70% in non-managerial jobs for Kannadigas or local candidates. It stipulates that candidates not possessing a secondary school certificate with Kannada as a language will need to pass a Kannada proficiency test. Biocon chairperson Kiran Mazumdar-Shaw took to X to say, "As a tech hub, we need skilled talent, and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy."Former Infosys CFO Mohandas Pai said on X: "This bill should be junked. It is discriminatory, regressive, and against the constitution. @Jairam_Ramesh is the govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this - a govt officer will sit on recruitment committees of the private sector? People have to take a language test?"N Venu, chairman of CII Karnataka State Council, said, "Prioritizing merit, irrespective of geography, will help maintain the state's competitive edge and foster a thriving industrial ecosystem that encourages investment and innovation." Balasubramanian A, SVP and business head at TeamLease Services, a recruitment and HR services company, told TOI that if this law comes into force, there will be a problem in finding enough talent to fill entry-level jobs. "With companies announcing expansion plans, you will need to mobilise even more people and there is simply not enough manpower in the state to accommodate this," he said. The industrial sector, he said, will face a large-scale crunch of blue-collar workers. "For white-collar and skilled jobs, it's both a qualitative and quantitative problem," he said, adding, "If companies can't find talent locally, then they'll move to other markets like Hyderabad, Pune, Chennai, or Gurgaon."Karnataka IT minister Priyank Kharge told the media that the department has requested the chief minister for a wider consultation involving leaders. "There's no need to panic. Karnataka is a progressive state. The clauses in the bill are a suggestion. If the industry feels it's not required we'll look at it," he said.Business rival Andhra Pradesh lost no time to exploit the opportunity Karnataka had provided. The state's minister for human resources, Nara Lokesh, wrote on X: "Dear @Nasscom members, we understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI, and data centre 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!"Kharge promptly responded to Lokesh, saying: "Karnataka has always excelled in most sectors due to our consistent relationships and consultative approach with industry leaders, advisory bodies, and consortiums in drafting policies and schemes. As with previous initiatives, this draft bill will include recommendations from our industry partners. Our goal is to develop a global workforce using local talent, while also encouraging global investments and creating employment opportunities. Wouldn't you also like to ensure that every company invested in Andhra Pradesh employs deserving, trained, and skilled individuals from Andhra Pradesh? Dear @Nasscom, be rest assured, we will not do anything that will not withstand legal scrutiny. This is your government and as always we are just a call away."

Karnataka Reservation Bill | Nasscom, PhonePe founder, tech workers speak out against the controversial bill

The Karnataka state government's draft bill that aims to reserve 50% of management jobs and 70% of non-management jobs for its locals has sparked outrage across the state, with migrant and multilingual tech workers lashing out at the proposed regulation. The bill that was recently cleared by the state cabinet has been temporarily put on hold as Chief Minister Siddaramiah said, "This will be revisited and decided in the coming days." PhonePe CEO and founder Sameer Nigam pointed out how the bill could make life difficult for job-seekers from army families or those who moved around frequently. "I am 46 years old. Never lived in a state for 15+ yrs[.]My father worked in the Indian Navy. Got posted all over the country. His kids don't deserve jobs in Karnataka? I build companies. Have created 25000+ jobs across India! My kids dont deserve jobs in their home city Shame.," posted Nigam on X on Wednesday. Karnataka halts jobs Bill as industry raises uproar (For top technology news of the day, subscribe to our tech newsletter Today's Cache) The National Association of Software and Service Companies (NASSCOM) trade assocation released a statement condemning the idea and expressing its disappointment with the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. "With over a quarter of India's digital talent, the state houses over 30% of the total GCCs and around 11000 start-ups. Its deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, impact jobs and the global brand for the state," noted NASSCOM in its statement, adding that the bill could drive out companies, impact foreign investments, and hurt start-ups. NASSCOM called on the state government to withdraw the bill, and for further meetings to take place regarding the industry's concerns. Responding to the statement, Andhra Pradesh's Information Technology and Communication & Industries Minister Nara Lokesh invited tech companies to shift to his state instead. "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 skilled talent for your IT enterprise with no restrictions from the Government. Andhra Pradesh is ready to welcome you. Please get in touch!," posted Lokesh. Siddaramaiah posted on X that the bill was still in the preparation stage and that a final decision would be taken after talks. "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 posted. Karnataka's Minister for Large and Medium Industries, M.B. Patil, also said that the bill was withheld until further consultations could take place, as he called on industry leaders not to panic. Read Comments

Karnataka Industries Minister jumps to douse fire as top industrialists slam bill for jobs for locals

Karnataka's Industry & Infrastructure Minister MB Patil rushed to address concerns over a proposed bill to provide quotas for Kannadigas in the private sector, amidst backlash from industry leaders. Biocon founder Kiran Mazumdar-Shaw emphasised the need for skilled talent without hindering the state's tech industry. Former Infosys director TV Mohandas Pai criticized the bill as discriminatory and regressive. Assocham co-chairman RK Mishra slammed the bill as detrimental to the Indian IT sector. Patil assured that the bill will be reviewed in consultation with key ministers to protect the interests of Kannadigas and industries.Karnataka's Industry & Infrastructure Minister MB Patil rushed on Wednesday to douse the concerns as the Congress-ruled Karnataka prepares to table a bill to provide for quotas for Kannadigas in the private sector. Top industry leaders have erupted in anger, warning the government that it might lose the edge it has over other states in attracting investments. Biocon founder Kiran Mazumdar-Shaw said "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy." Former Infosys director TV Mohandas Pai said the bill should be junked as it is "discriminatory, regressive and against the constitution." He called it "a fascist bill as in Animal Farm, unbelievable that the @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of the private sector? People have to take a language test?" Assocham co-chairman RK Mishra slammed the bill, ridiculing it as "another genius move from Govt of Karnataka. "Mandate local reservation and appoint government officers in every company to monitor. This will scare Indian IT & GCCs," he posted on X. The state cabinet had on Monday cleared a bill called The Karnataka State Employment of Local Candidates In the Industries, Factories and Other Establishments Bill, 2024. Patil, who led a team of senior officials to Japan and South Korea recently to seek investments, spoke to the media, promising the address the concerns. The minister said he would discuss with Chief Minister Siddaramaiah, IT/BT Minister Priyank Kharge, Law Minister HK Patil and Labour Minister Santosh Lad, and go for wider consultations on the bill while keeping the interests of Kannadigas. "We will ensure that the interests of Kannadigas are protected, alongside those of the industries." "Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialization. We will make sure that everyone's interests are safeguarded. The industries are assured that they need not have any fear or apprehensions and can rest assured," he posted on X. He added: "India is currently experiencing a manufacturing and industrial revolution driven by the global China Plus One policy. In this competitive era, states like Karnataka, Maharashtra, Tamil Nadu, and Telangana are striving to be at their best. It is of utmost importance for all states to be at their competitive peak. According to the Karnataka GCC Landscape report released by Electronics, IT/BT Minister Priyank Kharge on Monday, Karnataka will have about one million professionals working in global capability centres (GCCs) by 2030. There were about 5.70 lakh people employed in GCCs, as of now, the report said. Bengaluru holds a commanding 39% market share of the larger GCC market in India. Bengaluru remains the hotspot for GCC build outs, hub for startups and preferred choice for platform engineering, owing to access to 25% of India's digital talent. Karnataka is home to about 570 GCCs in India and leads the GCC talent market by a large margin. Karnataka is home to 26,000 plus active startups, in which more than 50% are tech start-ups. Bengaluru is the Unicorn capital of India with 40% of unicorns located in the city. Bengaluru is also home to more than 25% of India's digital talent of more than 3,25,000 professionals. Bengaluru is the world's second largest hub for the AI talent pool. JOBS FOR LOCALS: According to the draft law, any industry, factory or other establishments shall appoint 50% of local candidates in management categories and 75% in non-management categories. It defines local candidates as candidates born in Karnataka or domiciled for a period of 15 years or capable of speaking, reading, and writing. People in the last category, however, must pass a test conducted by the nodal agency, notified by the government. Non-management category means people working in factory, industry, company, establishment in the position of clerical, unskilled, semi-filled, skilled employees involved in IT/ITES and includes contract and casual workers, according to the bill. A company, however, can seek exemption in the event local candidates are not available. The bill, however, caps such exemptions at 25% for management category and 50% for non-management category. The violations will invite a penalty.

Karnataka Industries Minister jumps to douse fire as top industrialists slam bill for jobs for locals

Karnataka's Industry & Infrastructure Minister MB Patil rushed to address concerns over a proposed bill to provide quotas for Kannadigas in the private sector, amidst backlash from industry leaders. Biocon founder Kiran Mazumdar-Shaw emphasised the need for skilled talent without hindering the state's tech industry. Former Infosys director TV Mohandas Pai criticized the bill as discriminatory and regressive. Assocham co-chairman RK Mishra slammed the bill as detrimental to the Indian IT sector. Patil assured that the bill will be reviewed in consultation with key ministers to protect the interests of Kannadigas and industries.Karnataka's Industry & Infrastructure Minister MB Patil rushed on Wednesday to douse the concerns as the Congress-ruled Karnataka prepares to table a bill to provide for quotas for Kannadigas in the private sector. Top industry leaders have erupted in anger, warning the government that it might lose the edge it has over other states in attracting investments. Biocon founder Kiran Mazumdar-Shaw said "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy." Former Infosys director TV Mohandas Pai said the bill should be junked as it is "discriminatory, regressive and against the constitution." He called it "a fascist bill as in Animal Farm, unbelievable that the @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of the private sector? People have to take a language test?" Assocham co-chairman RK Mishra slammed the bill, ridiculing it as "another genius move from Govt of Karnataka. "Mandate local reservation and appoint government officers in every company to monitor. This will scare Indian IT & GCCs," he posted on X. The state cabinet had on Monday cleared a bill called The Karnataka State Employment of Local Candidates In the Industries, Factories and Other Establishments Bill, 2024. Patil, who led a team of senior officials to Japan and South Korea recently to seek investments, spoke to the media, promising the address the concerns. The minister said he would discuss with Chief Minister Siddaramaiah, IT/BT Minister Priyank Kharge, Law Minister HK Patil and Labour Minister Santosh Lad, and go for wider consultations on the bill while keeping the interests of Kannadigas. "We will ensure that the interests of Kannadigas are protected, alongside those of the industries." "Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialization. We will make sure that everyone's interests are safeguarded. The industries are assured that they need not have any fear or apprehensions and can rest assured," he posted on X. He added: "India is currently experiencing a manufacturing and industrial revolution driven by the global China Plus One policy. In this competitive era, states like Karnataka, Maharashtra, Tamil Nadu, and Telangana are striving to be at their best. It is of utmost importance for all states to be at their competitive peak. According to the Karnataka GCC Landscape report released by Electronics, IT/BT Minister Priyank Kharge on Monday, Karnataka will have about one million professionals working in global capability centres (GCCs) by 2030. There were about 5.70 lakh people employed in GCCs, as of now, the report said. Bengaluru holds a commanding 39% market share of the larger GCC market in India. Bengaluru remains the hotspot for GCC build outs, hub for startups and preferred choice for platform engineering, owing to access to 25% of India's digital talent. Karnataka is home to about 570 GCCs in India and leads the GCC talent market by a large margin. Karnataka is home to 26,000 plus active startups, in which more than 50% are tech start-ups. Bengaluru is the Unicorn capital of India with 40% of unicorns located in the city. Bengaluru is also home to more than 25% of India's digital talent of more than 3,25,000 professionals. Bengaluru is the world's second largest hub for the AI talent pool. JOBS FOR LOCALS: According to the draft law, any industry, factory or other establishments shall appoint 50% of local candidates in management categories and 75% in non-management categories. It defines local candidates as candidates born in Karnataka or domiciled for a period of 15 years or capable of speaking, reading, and writing. People in the last category, however, must pass a test conducted by the nodal agency, notified by the government. Non-management category means people working in factory, industry, company, establishment in the position of clerical, unskilled, semi-filled, skilled employees involved in IT/ITES and includes contract and casual workers, according to the bill. A company, however, can seek exemption in the event local candidates are not available. The bill, however, caps such exemptions at 25% for management category and 50% for non-management category. The violations will invite a penalty.

Nasscom, industry captains erupt in anger against Karnataka's job reservation move

They fear the bill will reverse the progress made by the state till now, drive away companies, and stifle startups. Neighbouring AP and Kerala threw their hats into the ring, welcoming tech companies to their states and promising all necessary support.Captains of technology companies, the industry body Nasscom, tech startups and platforms, on Wednesday, erupted in anger against Karnataka's bill mandating jobs for locals at management and below levels as the Congress-ruled state prepares to take up the draft law in the ongoing legislature session. Nasscom urged the government to withdraw the bill and sought an urgent meeting with the state authorities to discuss the concerns. "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. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce," it said in a statement. Technology industry experts including Biocon founder Kiran Mazumdar Shaw, former Infosys director TV Mohandas Pai and former CFO and Nasscom co-chairman RK Mishra criticised the bill in strong words. Pai called the bill should be junked as it is "discriminatory, regressive and against the Constitution." In a post on X, he termed it "a fascist bill as in Animal Farm, unbelievable that the @INCIndia can come up with a bill like this - a govt officer will sit on recruitment committees of the private sector? People have to take a language test?" Shaw also took to X to say, "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy." Mishra, also the cofounder of successful startup Yulu Bikes, said the move was "short-sighted" and it "will scare Indian IT & GCCs". Calling it a bad precedent, Shriram Subramanium, founder of proxy shareholder advisory firm InGovern, said industry and companies will push back against this bill. According to him, Karnataka doesn't have so much talent and the "societal impact in the psychology of citizens (both Karnataka domicile and outside Karnataka) will be huge". Subramanium went on to say, "Who will do even unskilled work? Security staff, Restaurant staff, Housekeeping jobs, Carpentry jobs, Mason jobs. Only people from outside Karnataka are good for these. Visit villages & small towns in Karnataka to see the aversion to doing such jobs." "Karnataka's ambition to replace Maharashtra as the biggest GDP contributing state can't happen alongside localisation efforts... in a free market, jobs always find skills, and by restricting skilled workers it will get more difficult to attract investments," Balasubramanian A, senior VP and business head at recruitment and human resource firm TeamLease Services, said. The move could also lead to newer startups looking for other bases. "The startup ecosystems in Delhi NCR and Mumbai have really improved and though Bengaluru is still top dog when it comes to finding talent and networking with important investors, a move like this could significantly benefit the other two contenders," an investor said, declining to be identified. The impact would be across blue-collar and white-collar jobs, with the essential labour supply required in sectors like ecommerce, quick commerce and logistics being disrupted, the investor added. "Over time as our fertility rates fall, this shortage will get worse. If you're making an outsized contribution to GDP when compared to your population, you need to mobilise labour from other states," Balasubramanian said. A large chunk of white-collar management in the city's top firms also hail from outside the state, something that could lead to these firms needing to shift their operations out of Bengaluru, they said. "Moreover, it could lead to foreign firms like Airbus and Mercedes moving their global capability centres (GCCs) out of the country entirely in case they fear more such disruptions in other cities." Bengaluru-based startups like Flipkart, Swiggy and Meesho did not immediately reply to requests for comments on the bill. AP, Kerala rush to welcome tech cos Amid the backlash on the bill, Andhra Pradesh's minister of IT electronics & communications Lokesh Nara welcomed technology firms to expand and relocate to its port city Visakhapatnam, also known as Vizag. On LinkedIn, Nara responded to Nasscom's post addressing its members, saying, "Andhra Pradesh is ready to welcome you. Please get in touch!" "We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data centre cluster at Vizag," Nara said. He further added, "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." Kerala Industries & Law Minister P Rajeeve urged companies to invest in Kerala. "Employee talent and merit are the only criteria for recruitment. It is the right time for companies to discover Kerala, with its highly skilled talent pool, the best climate, and a hassle-free environment. Embrace this opportunity," he posted on X (formerlyTwitter).

Karnataka temporarily suspends job quota bill after backlash from industry

The Siddaramiah-led Congress government in Karnataka late on Wednesday night suspended the introduction and implementation of a proposed jobs quote bill for locals in the private sector after backlash from the industry. In a social media post, the CM claimed that the bill was still under preparation but gave no explanation on why if this was the case so, it had been passed by the cabinet on Monday. Earlier in the day industry leaders and associations hit out at the government in Karnataka and finally, the state government went into damage control mode. Also read: Karnataka Cabinet approves draft Bill mandating job reservation for locals Industries Minister MB Patil said that the draft bill reserving jobs to locals in the private sector will be discussed with the Chief Minister, IT-BT Minister, Law Minister, and Labour Minister. Several industry leaders as well as IT software and services association Nasscom argued that the proposed measure will deter talent and investment in the state. On Monday the state cabinet had approved the 'Karnataka State Employment of Local Candidates in Industries, Factories and Other Establishments Bill 2024' which makes it mandatory for the private sector to reserve jobs for Kannadigas only, in their establishments. The bill mandates 50 per cent of management jobs and 70 per cent of non-management roles to be reserved for locals in the private sector. The bill was slated to be tabled in the assembly on Thursday. A statement from the Chief Minister's Office said that the proposed bill - which had been approved by the cabinet earlier - will be in abeyance till a 'detailed discussion is done in the next cabinet meeting before arriving at any further measures.' Nasscom earlier expressed its 'disappointment and deep concern' pointing out that the tech sector which contributes 25 per cent to the GDP of the state and houses a quarter of the country's digital talent may be forced to relocate. Kiran Mazumdar-Shaw, executive chairperson of Biocon Limited, said "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy" Similarly, former Infosys CFO T V Mohandas Pai called the bill 'fascist.' He said that the bill in its current form should be junked as it is discriminatory, regressive and against the Constitution. After the backlash, the state government has tried some damage control measures. On the official X account of the Chief Minister, a post in which he had earlier endorsed a 100 per cent quota for Kannadigas in Group C and Group D jobs (blue-collar workers) in the private sector has now been deleted without any explantion. Industries minister M B Patil said, there will be wider consultations to protect the interests of Kannadigas. "Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialization. The industries need not have fear or apprehensions, and can rest assured," he said. Other states To be sure Karnataka is not the first state in the country to try and reserve jobs for locals. In November last year, the Punjab & Haryana High Court had quashed a Haryana government's law that mandated 75 per cent reservations of locals in private sector jobs having gross salary of less than ₹30,0000. It had held that the Haryana State Employment of Local Candidates Act, 2020 was "unconstitutional" and "violative of Part III of the Constitution". Industry bodies had argued that the law creates an "unprecedented" intrusion by the state government into the fundamental rights of private employers to carry on their business and trade. However, the Haryana State Government moved the Supreme Court appealing against the order and the matter is now pending before the Apex court. Rajeev Chawla, Chairman, IamSMEofIndia, an industry body, that was one of the petitioners in the Haryana reservations case, said, " Any proposal of this kind of reservations on parochial grounds in the private sector hurts the competitiveness of the industry, impacts ease of doing business and also increases the compliance burden. Karnataka is the hub of start-ups and IT companies, has one of the highest levels of industrialisation and is home to a large number of higher education and professional educational institutions. Hence, such a reservation proposal is not logical." The Telangana Government too had similarly introduced a policy in August 2020, announcing incentives for companies that provided jobs to local employees. "It was not mandatory. Mandating it will act as a deterrent and companies may stay away. We offered incentives to those who complied with," a government official said. The policy offered incentives like rebates in SGST and lower power tariffs based on the level of localization in Category I (skilled) and Category (Semi-skilled) jobs. The reservations ranged from 50 p.c. to 70 p.c. across the two categories. Andhra Pradesh too had tried something similar. During the previous YSR Congress Party (YSRCP) government in Andhra Pradesh led by Y S Jagan Mohan Reddy, the Government mandated 70 per cent employment to locals in the new industries to be set up. However, according to a senior official, the rule was not implemented strictly as many investment proposals remained on the paper. The new NDA Government of N. Chandrababu Naidu is yet to decide on its continuation. Meanwhile, Nara Lokesh the Minister for IT, electronics, and education of Andhra Pradesh fishing in troubled waters posted on a social media site 'Dear @Nasscom members, We understand your disappointment. We welcome you to expand or relocate your businesses to top our IT, IT Services, AI and data center cluster at Vizag.' He went on to add 'We will offer you best-in-class facilities, uninterrupted power, infrastructure and the most suitable skilled talent for your IT enterprise with no restrictions for the government. AP is ready to welcome you. Please get in touch.' 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PhonePe CEO slams Karnataka's private sector quota bill: Never lived in a state... - Times of India

PhonePe CEO Sameer Nigam has voiced his dissatisfaction with Karnataka's private sector quota bill. The controversial bill, which is now put on hold after backlash, proposes 50 percent of management jobs and 70 percent of non-management roles to be reserved for locals in the private sector. PhonePE CEO took to microblogging platform X (formerly Known as Twitter) to express his concern over the bill.Calling it a 'shame', Nigam said that he 'builds companies' and has created 25000+ jobs across India. Citing his father's example who worked in the Indian Navy and worked all over the country during his posting, he asks "His kids don't deserve jobs in Karnataka?". Here's what he wrote in the X post I am 46 years old. Never lived in a state for 15+ yrs. My father worked in the Indian Navy. Got posted all over the country. His kids don't deserve jobs in Karnataka? I build companies. Have created 25000+ jobs across India! My kids dont deserve jobs in their home city? Shame. Commenting on Nigam's X post, a user wrote "Who says you don't deserve Jobs in Karnataka? All you have to do is LEARN THE LANGUAGE! Why so much hue and cry?". Replying to him, the PhonePe CEO said "Karnataka <> only Kannada speaking people. Get it? I can work wherever I want in India. I can learn any language that I want to. The constitution of India gives me these rights. IT'S MY CHOICE. Get the hue and cry." "A fairly strong comment from a reticdnt builder. Looks like tech may move out of Bangalore," another X user commented on Nigam's post to which he replied "I don't think so. I truly hope not. Bangalore is a lovely city! Fact is that Bangalore has contributed massively to the state exchequer, which in turn funds a lot of Karnataka's overall state development and GDP". The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.