Andhra Pradesh govt woos industrialists as Karnataka bill on local quota causes dismay

As the Karnataka bill mandating a certain percentage of quota to local candidates in private companies caused concern among industrialists, Andhra Pradesh Minister Nara Lokesh on Saturday rolled out a red carpet for them, offering "best-in-class facilities."

"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," Lokesh said in a post on X.

"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!," he added.



Meanwhile, Karnataka CM Siddaramaiah said on Wednesday that the bill enforcing 50 per cent reservation for administrative posts and 75 per cent for non-administrative posts for Kannadigas in private sector organizations, industries and enterprises has been temporarily put on hold.

The decision came after several investors raised concerns over the provisions in the bill.

Als0 Read: What is Karnataka’s Job Reservation Bill for Kannadigas? How will it affect the companies?

Expressing disappointment over the bill, the tech industry's apex lobby group, the National Association of Software and Service Companies (NASSCOM) said that restrictions could force companies to relocate as local skilled talent becomes scarce.

"NASSCOM & its members are disappointed and express deep concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.

"Tech sector contributes to 25% of the state GDP, houses a quarter of the country's digital talent, over 11,000 start-ups, and 30% of the total GCCs. Restrictions could force companies to relocate as local skilled talent becomes scarce," NASSCOM said in a statement.

Businessman and philanthropist TV Mohandas Pai said, "If you want to promote Kannadigas for jobs, spend more money on higher education. Give training to them. Spend more money on skill development. Spend more money on internships, spend more money on apprenticeship programs. So they all became skilled. Not like this. What are you trying to achieve by doing this?"

According to chief minister Siddaramaiah the bill will be revisited and decided upon in the coming days.

"The bill approved by the cabinet to provide reservations for Kannadigas in private sector organizations, industries and enterprises has been temporarily put on hold. This will be revisited and decided in the coming days," Siddaramaiah posted on X.

The CM said in another post on X: "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."