Karnataka Puts Bill Mandating Reservation For Kannadigas In Private Firms On Hold

A bill mandating Kannadiga reservation in the private sector was put on hold by the Karnataka government on Wednesday. The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024 was cleared by the state Cabinet on Tuesday. "The Cabinet-approved bill to provide Kannadigas with reservation in private sector organisations, industries, and enterprises has been temporarily suspended. This will be reviewed and decided in the coming days, according to a statement issued by the Chief Minister's Office on Wednesday.

"Any industry, factory or other establishments shall appoint fifty per cent of local candidates in management categories and seventy per cent in non-management categories," said the law. The bill states: "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."

Industry veterans reacted strongly to the state government's move, calling the proposed quota "fascist" and "shortsighted." TV Mohandas Pai, a well-known entrepreneur and former Chief Financial Officer of Infosys, described the bill as "regressive".

R K Misra, co-chairman of ASSOCHAM Karnataka, said on 'X', "Another genius move by the Karnataka government. Mandate local reservations and appoint a government officer in each company to monitor. This will scare Indian IT and GCCs. Short-sighted."

The National Association of Software and Service Companies (NASSCOM) warned the government on Wednesday that "the restrictions could force companies to relocate as local skilled talent becomes scarce."

Karnataka's move was similar to a bill introduced by the Haryana government, which mandated 75% reservation in private sector jobs for state residents. It was, however, overturned by the Punjab and Haryana High Court on November 17, 2023.

Karnataka State Employment of Local Candidates in Industries, Factories, and Other Establishments Bill, 2024, requires private firms to reserve jobs for Kannadigas.