SCATHING criticism from business and industry leaders has forced the Karnataka Government to put the contentious reservation Bill for Kannadigas in private firms on hold. The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, was cleared by the state cabinet on Monday; however, the ensuing uproar made CM Siddaramaiah claim that the final decision would be taken after comprehensive discussions. As per the Bill, ‘any industry, factory or other establishments shall appoint 50 per cent of local candidates in management categories and 70 per cent in non-management categories’. The CM had even tweeted about 100 per cent reservation for Kannadigas in C and D grade posts in private institutions of the state, but he was quick to delete the post.
It’s baffling that Karnataka, India’s tech hub and one of the best-performing states in terms of ease of doing business, has come up with this regressive Bill. NASSCOM (National Association of Software and Service Companies) has cautioned the Congress government that the ‘restrictions could force companies to relocate as local skilled talent becomes scarce’. The southern state has failed to learn a lesson from the Haryana fiasco. The Haryana State Employment of Local Candidates Bill, 2020, which mandated 75 per cent reservation in private sector jobs for residents of the state, was struck down by the Punjab and Haryana High Court in November 2023. Andhra Pradesh and Jharkhand have also got their fingers burnt with similar legislation.
The ‘vocal for local’ slogan might have gained currency in recent years, but any compromise on merit, talent and skills for the sake of political gains is enough to put off investors. The TDP government in Andhra, looking to cash in on neighbouring Karnataka’s potential own goal, has invited NASSCOM to expand or relocate its businesses to Vizag. Amid the fierce competition between states over investments, Karnataka would be well advised to give the Bill a quiet burial.