Bengaluru: The Karnataka government on Wednesday put on hold a bill, which mandated reservation for Kannadigas in the private sector. Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was cleared by the state Cabinet on Tuesday.
"The bill approved by the Cabinet to provide reservation for Kannadigas in private sector organisations, industries and enterprises has been temporarily put on hold. This will be revisited and decided in the coming days," a statement issued by the Office of the Chief Minister said on Wednesday.
"Any industry, factory or other establishments shall appoint fifty per cent of local candidates in management categories and seventy per cent in non-management categories," the bill read. The bill came in for criticism from business honchos and tech tycoons.
Earlier in the day, apex IT industry body Nasscom expressed deep disappointment and concern over the bill, and has exhorted the state government to withdraw it.
The IT industry body sought an urgent meeting with state authorities to discuss the concerns and "prevent the state's progress from being derailed", the association said.
"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," a Nasscom release said.
Stating that the tech sector contributes to 25 per cent of the state GDP, houses a quarter of the country's digital talent, has over 11,000 startups and 30 per cent of the total GCCs, Nasscom contended that the restrictions could force companies to relocate as local skilled talent becomes scarce. (With agency inputs)
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