“Karnataka Backs Down: Private Sector Quota Bill Shelved After Public Outcry”
After top CEOs and industry bodies warned the Karnataka government that the proposed law on job reservation in the private sector would drive away companies and set back progress, the state leadership announced on Wednesday that the Bill has been withheld for comprehensive discussion in the next Cabinet meeting. The Cabinet had previously approved ‘The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024,’ which mandates 75% reservation in non-management jobs and 50% in management jobs for “local candidates.”
Prominent voices in the industry, including Biocon founder Kiran Mazumdar Shaw, called for exemptions for highly skilled recruitment, while Nasscom, representing software and service companies, warned that the Bill would stifle startups and force companies to relocate due to a scarcity of local skilled talent. Venture capitalist Mohandas Pai labeled the Bill as ‘discriminatory,’ ‘regressive,’ and ‘fascist’ on social media. Following this adverse feedback, the government decided to review the Bill’s provisions.
Chief Minister Siddaramaiah stated on social media platform X that the draft Bill, intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises, is still in the preparation stage, and a final decision will be made after a comprehensive Cabinet discussion. State Industries Minister MB Patil assured that the Bill is withheld until further consultations and due diligence, asking industry leaders not to panic. He and IT and Bio-Technology Minister Priyank Kharge promised wider consultations before passing the Bill, ensuring no rule would be enacted without thorough discussion.
Patil emphasized that the government aims to protect the interests of both Kannadigas and the industries, assuring that the industries need not fear the Bill. The Bill defines “local candidates” as individuals born in the state or living in Karnataka for 15 years, capable of reading, writing, and speaking Kannada, and passing a test conducted by a nodal agency. The “management” category includes supervisory, managerial, technical, operational, and administrative positions, while the “non-management” category covers clerical, unskilled, semi-skilled, and skilled employees in the IT-ITES industry.
In the absence of qualified local candidates, industries would be required to train and engage local candidates within three years, with provisions for reducing reservation in special cases. Nasscom expressed deep concern, urging the state to withdraw the Bill to prevent reversing Karnataka’s progress and derailing its appeal to global investors. Mohandas Pai criticized the Bill’s requirements, questioning the involvement of government officers in private sector recruitment and mandatory language tests, calling the law regressive and unconstitutional.
While pro-Kannada organizations celebrated the Bill as fulfilling a long-standing demand for reservation, opposition leaders and prominent ministers indicated that the government might be reconsidering the Bill. Leader of Opposition R Ashok criticized the Bill as a distraction from alleged corruption and failures of the Congress government, demanding accountability from Chief Minister Siddaramaiah.
The Congress party’s manifesto for the 2023 Assembly elections in Karnataka included a promise to provide 80% reservation in all public and private sector jobs. The Sarojini Mahishi report of 1984 had similarly recommended prioritizing locals in industry appointments, a demand recently revived by pro-Kannada activists through demonstrations.
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Author:- Apoorva Arora