Bengaluru: Karnataka Chief Minister Siddaramaiah has decided to “temporarily hold” the tabling of the contentious bill mandating reservation of private jobs in the state for Kannadigas to further deliberate on its provisions in the Cabinet.
“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,” Siddaramaiah wrote in a post on X Wednesday night.
Within minutes, the post was updated to say that the bill was in the preparation stage and a final decision would be taken after comprehensive deliberations in the upcoming Cabinet meeting.
The development comes amid criticism from the business community.
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.
— Siddaramaiah (@siddaramaiah) July 17, 2024
The loosely drafted ‘Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill 2024’ proposed to reserve 50 percent of managerial jobs, and as much as 70 percent non-managerial jobs for local candidates, or Kannadigas, in most private sector establishments.
While stakeholders in various sectors have expressed their concerns over the proposed bill, the Opposition has called it a “diversionary tactic” to deflect attention away from the growing allegations of corruption against Chief Minister Siddaramaiah and the members of his one-year-old government.
Karnataka is a popular investment destination, and comes second to neighbouring Maharashtra in terms of attracting foreign capital — a resource it depends on to deal with the fund crunch, low inflow of grants by the Centre and decreasing share in central taxes, and to bankroll its welfare schemes and development projects.
The Karnataka government’s constant flip-flop on the issue has fuelled confusion around the bill, and even attracted attention from neighbouring states, like Andhra Pradesh, which are asking companies to invest there instead.
‘Relocate your businesses’
One of the ministers in Siddaramaiah’s Cabinet said that the bill was being opposed as it was drafted by the labour department without consulting the key stakeholders.
“The bill is unlikely to come (be tabled) as it will deter potential investors,” the minister told ThePrint, requesting anonymity.
NASSCOM, the apex body representing India’s technology industry, said in a statement that the provisions of the bill “threatens” to reverse the progress of the state and “drive away companies and stifle startups”.
Nara Lokesh, minister in the Andhra Pradesh Cabinet and son of CM Chandrababu Naidu, posted on X Wednesday, asking NASSCOM members to invest in Visakhapatnam.
“Dear @NASSCOM members, We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data center cluster at Vizag. 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!,” Lokesh wrote.
In response to Lokesh, Priyank Kharge, Karnataka’s electronics, information technology (IT) and biotechnology (BT) minister, reassured NASSCOM that the state government was “just a call away”, and concerns would be addressed.
Dear @naralokesh garu.
నువ్వు బాగున్నావా. (I hope, I got this right).
Karnataka has always excelled in the most sector due to our consistent relationships and consultative approach with industry leaders, advisory bodies, and consortiums in drafting policies and schemes. As with… https://t.co/H3UQOOKAYK
— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) July 17, 2024
‘Wider consultations’
The Bharatiya Janata Party (BJP) has relentlessly accused Siddaramaiah of corruption in the ongoing session of the Karnataka assembly in Bengaluru.
The chief minister has been accused of bending rules to benefit from allotment of high-priced plots in exchange for agricultural land in his home district of Mysuru. In another case, a member of his cabinet was forced to step down after allegedly diverting funds meant for the welfare of Scheduled Tribes (ST) from the state-run Valmiki Corporation.
The Congress-led government has spent a lot of time last month only defending these allegations. The BJP has said that the new reservation bill is an attempt to divert attention.
“This government and CM are facing a lot of allegations and just to cover up, he (CM) is coming up with all these things,” C.N. Ashwath Narayan, senior BJP leader and former minister, told reporters in Bengaluru Wednesday.
The U-turn by Siddaramaiah over the provisions of the bill indicates that the proposal was done in haste, BJP leaders have said.
Siddaramaiah had himself posted on X Tuesday evening that the bill would provide 100 percent employment to “Kannadigas”. However, according to the draft bill, 50 percent of management and 70 percent of non-management jobs would be reserved for “local candidates”.
Siddaramaiah has since deleted the post.
A minister in his Cabinet has also said that the government will go back to the drawing board.
M.B. Patil, Karnataka’s large and medium industries minister, wrote in a long post on X that the government will hold “wider consultations” to safeguard interests of all stakeholders.
“#Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialization. We will make sure that everyone’s interests are safeguarded. The Industries are assured that they need not have any fear or apprehensions and can rest assured,” Patil wrote.
India is currently experiencing a manufacturing and industrial revolution driven by the global China Plus One policy. In this competitive era, states like Karnataka, Maharashtra, Tamil Nadu, and Telangana are striving to be at their best. It is of utmost importance for all states… pic.twitter.com/Y4Qll1DzxW
— M B Patil (@MBPatil) July 17, 2024
ThePrint had reported Wednesday that the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) was not even consulted over the bill.
Several prominent voices from the IT, BT and startup sectors have voiced concerns over the bill, which they have called “retrograde”.
“I think it is a very regressive, unnecessary, draconian, unconstitutional, illegal bill,” T.V. Mohandas Pai, former Infosys CFO and Chairman of Aarin Capital, told the media Wednesday. He also said that according to the proposal, a member of the nodal agency (government) would be present during recruitment processes of private companies and other establishments to ensure compliance.
However, there is no explicit mention of this in the draft bill, even though the nodal agency would be responsible for compliance.
The next cabinet meeting is scheduled to be held Monday, and it remains to be seen if the Siddaramaiah-led government will revise the bill to manage the expectations of all stakeholders or give it a quiet burial.
(Edited by Mannat Chugh)
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