Karnataka Government Puts Reservation Bill for Kannadigas on Hold After Backlash

The Karnataka government has temporarily halted the reservation bill for Kannadigas in private firms following strong opposition from business leaders and tech executives. The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was approved by the state Cabinet on Monday and was set to be presented in the Assembly on Thursday.

Chief Minister Siddaramaiah announced on X that the bill, which aims to implement reservations for Kannadigas in private sector institutions, is still under preparation. He stated that a final decision would be made after thorough discussions in the next cabinet meeting.

Industry Leaders React

Industry veterans have voiced their objections to the proposed quota. TV Mohandas Pai, former Chief Finance Officer of Infosys, criticised the bill as regressive and discriminatory. He expressed his concerns on X, stating, "This bill should be junked. It is discriminatory, regressive and against the constitution." He also questioned the government's role in certifying individuals and compared the bill to a fascist measure.

Kiran Mazumdar Shaw, Managing Director of Biocon, highlighted the need for skilled talent in the tech hub. She warned that while providing jobs for locals is important, it should not compromise Karnataka's leading position in technology. Shaw suggested that exemptions for highly skilled recruitment should be included in the policy.

Government's Response

In response to the criticism, Karnataka Infrastructure Development and Medium and Heavy Industries Minister M B Patil assured that the government would hold wider consultations to balance the interests of Kannadigas and industries. He emphasised that Karnataka is a progressive state and cannot afford to lose its industrialisation momentum.

Patil also reassured industries that their interests would be safeguarded and that there was no need for fear or apprehensions. He promised discussions with industry representatives to address their concerns.

Comparison with Haryana's Bill

The Karnataka bill mandates that any industry, factory or other establishment must appoint 50 per cent of local candidates in management categories and 70 per cent in non-management categories. This move is similar to a bill introduced by the Haryana government, which mandated 75 per cent reservation in private sector jobs for state residents. However, this bill was struck down by the Punjab and Haryana High Court on November 17, 2023.

National Reactions

The National Association of Software and Service Companies (NASSCOM) cautioned that such restrictions could lead companies to relocate due to a scarcity of local skilled talent. The development also caught the attention of neighbouring Andhra Pradesh. TDP general secretary and IT minister Nara Lokesh invited NASSCOM to expand or relocate their businesses to Andhra Pradesh's IT cluster at Vizag, offering best-in-class facilities and no government restrictions.

Karnataka Chief Minister Siddaramaiah deleted his earlier post about 100 per cent reservation for Kannadigas. He later clarified that the cabinet approved a bill fixing 50 per cent reservation for administrative posts and 75 per cent for non-administrative posts for Kannadigas in private industries.

Information Technology and Biotechnology Minister Priyank Kharge assured NASSCOM that recommendations from industry partners would be included in the draft bill. He stated that they would ensure the bill withstands legal scrutiny and reiterated that the government is always available for consultation.

The situation remains fluid as the Karnataka government continues to navigate between protecting local interests and maintaining its industrial growth. Further discussions are expected before any final decision is made regarding the reservation bill.