Minister vows wider consultation amid massive row over quota bill
As pressure from the industry leaders mounted, chief minister Siddaramaiah deleted his post on social media platform claiming 100% reservation in C and D category jobs in private sector even though the draft bill has no mention of it.
Bengaluru: The Karnataka government on Wednesday said it will hold consultations with the stakeholders on reservation in private sector jobs for locals following a backlash from industry leaders, a day after the state cabinet approved a draft law providing for 50% to 75% reservation in private sector jobs in three years.
As pressure from the industry leaders mounted, chief minister Siddaramaiah deleted his post on social media platform claiming 100% reservation in C and D category jobs in private sector even though the draft bill has no mention of it. The proposed law gives three years to the industry to comply with reservation provisions and allows the government to give some relaxation to the industry from the reservation provisions.
The National Association of Software and Service Companies (Nasscom), which represents India’s technology sector, expressed deep apprehension about the Bill. Nasscom warned that the new policy could force companies to relocate due to a shortage of local skilled talent, potentially driving global firms away from Karnataka and stifling the growth of startups.
“The technology sector has been crucial to Karnataka’s economic and social development, with Bengaluru known globally as India’s Silicon Valley. It’s 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,” said a statement from Nasscom.
The IT and startup industry body further added that the technology sector contributes almost 25% of the state GDP and has played a key role in enabling higher growth for the state, and higher per capita income than the national average. With over a quarter of India’s digital talent, the state houses over 30% of the total GCCs and around 11000 start-ups.
“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. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce,” said the statement.
“Globally, there is a huge shortage of skilled talent and Karnataka despite the large pool, is no exception. For states to become a key technology hub a dual strategy is key - magnet for best talent worldwide and focussed investment in building a strong talent pool within the state through formal and vocational channels,” it further added.
Responding to the draft bill, Kiran Mazumdar Shaw, chairperson of Biocon, said there is a need for skilled talent to maintain Karnataka’s reputation as a leading tech hub. “As a tech hub, we need skilled talent. While the goal is to provide jobs for locals, we must not compromise our leading position in technology. There should be exemptions for highly skilled recruitment from this policy,” Shaw commented on social media, addressing the chief minister and the IT minister.
Ramesh Chandra Lahoti, president of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), criticised the lack of consultation with key industry bodies before drafting the legislation. “The provisions for penalties should be reconsidered. Imposing such stringent laws isn’t right, especially considering that we are the primary job creators in the private sector.”
A veteran of Bengaluru’s IT industry, TV Mohandas Pai slammed the state government saying that skilling Kannadigas is the only way to promote them for jobs rather than giving them reservations. Pai said that the bill is “fascist” and also unconstitutional.
“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 become skilled. Not like this. What are you trying to achieve by this?” Pai said.
Karnataka deputy chief minister D K Shivakumar and state information technology minister, Priyank Kharge, said it was just a draft approved by the cabinet for wider consultation with all stakeholders. Shivakumar said investors need not worry and they want “talented” people from outside to come and work in Karnataka. Shivakumar added that the Nasscom should not be disappointed and government will listen to them.
Kharge said that there is no need for panic and the industry will be consulted regarding any decision. “They have expressed their thoughts through social media and the media. But these are the very same industry leaders who have sat with us across the table and helped us draft policies. Today, if Karnataka is a powerhouse, we also owe it to these industry leaders for advising us. So, we will seek their counsel and we will act accordingly,” he said.
State heavy industries minister, M B Patil, said that the interests of the industry will be protected. “Keeping the interests of Kannadigas paramount, I will discuss this issue with Chief Minister Siddaramaiah, IT Minister, Law Minister, and Labour Minister. We will have wider consultations. We will ensure that the interests of Kannadigas are protected, alongside those of the industries,” he posted on X.
Andhra Pradesh, Haryana and Jharkhand have similar laws in place. The Punjab and Haryana high court had quashed the Haryana law providing for 75% reservation in private sector for jobs up to monthly salary of ₹30,000 saying it was in violation of the Article 14 and 19 of Constitution which provides for freedom of employment.