After facing massive backlash on social media and fierce criticism from business leaders, the Karnataka government decided to put on hold a Bill for Kannadigas for reservation in private companies.
In a statement, the chief minister's office (CMO) says, "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."
"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,"
chief minister Siddaramaiah said in a post on X.
On Monday, the state Cabinet cleared the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024. The Bill mandates industries, factories, and other establishments appoint local candidates in 50% of management positions and 75% in non-management positions.
A person born in Karnataka, residing in the state for 15 years, and able to speak, read, and write Kannada will be considered a local candidate, the Bill says. "Candidates who did not study Kannada in high school must pass a test conducted by a nodal agency."
Earlier
in a post on X, chief minister Siddaramaiah stated that the Bill will be presented in the Assembly on Thursday. He says, "The cabinet meeting held on Monday has given consent for the act giving 100% reservation for Kannada people for the posts in 'c' and 'c' category jobs in all private companies operating in the state. It is the objective of the government to prevent Kannada people from being denied job opportunities and to give them jobs to build lives peacefully in their motherland. Ours is pro-Kannadiga government. Our priority is to protect the interests of Kannada people."
Immediately, industry body Nasscom, representing India's US$250bn (billion) information technology (IT) industry says it is seriously concerned about the provisions of a Bill providing for reservation for Kannadigas in private companies in Karnataka.
"The bill's provisions threaten to reverse 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," the
industry body said in a post on X.
Responding to the criticism from industry leaders, Priyank Kharge, minister for IT in Karnataka, says he has requested CM Siddaramaiah to implement the Bill only after consultation with the industrial experts and other departments on its conditions.
Responding to a post by Kiran Mazumdar-Shaw, executive chairperson of Biocon Ltd,
on X, Mr Kharge says, "As always, we will consult with industries, industry bodies and thought leaders to ensure we foster a favourable environment for investments and job creation for locals while addressing the needs of the global workforce. No detrimental rules or laws will be enforced without due consultations with stakeholders."
