As Nasscom raises ‘concerns’ over Kannadiga quota Bill, Andhra woos companies to Vizag
“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,” tweets Lokesh
What Karnataka might face if it goes ahead with the Bill to reserve private sector jobs for Kannadigas was somewhat evident on Wednesday (July 17) when tech trade association Nasscom raised “serious concerns” about the proposal and Andhra Pradesh Minister Nara Lokesh promptly offered them “best-in-class facilities” in Vizag to relocate.
The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, was cleared by the Karnataka cabinet on Monday and is likely to be placed before the Assembly on Thursday. It mandates 50 per cent reservation for administrative posts and 75 per cent for non-administrative posts for Kannadigas in private industries.
Nasscom’s warning
The National Association of Software and Service Companies (Nasscom), a non-governmental trade association and advocacy group primarily serving the Indian tech sector, said in a statement on X that such “restrictions could force companies to relocate as local skilled talent becomes scarce”.
“The bill’s provisions threaten to 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,” Nasscom said in the statement.
Lokesh’s note
Reacting to the statement, Lokesh, Telugu Desam Party (TDP) leader and son of Andhra Pradesh Chief Minister Chandrababu, posted on X, “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.”
He 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. Andhra Pradesh is ready to welcome you. Please get in touch!”
Industry leaders’ warning
Naidu’s TDP is an NDA ally of the BJP, which has been quick to slam the Congress government in Karnataka over the proposed Bill.
Top industry leaders have already warned the Karnataka government that such a law would blunt the state’s edge in technology. After the severe backlash, Karnataka ministers Priyank Kharge and MB Patil have said the Bill was just a proposal by the Labour Department and other departments were not consulted. They have assured the industrialists that the law would be implemented only after holding discussions with Chief Minister Siddaramaiah and industry experts.
