Kannadiga reservation bill: Karnataka's loss is Andhra, Kerala's gain? India Inc slam 'regressive' move

The Karnataka government's move (now put on hold) to introduce a bill that would make it mandatory for private firms in the state to reserve jobs for the local Kannadiga population has kicked up a storm online.

Social media went into a tizzy on Tuesday after the Congress government in Karnataka announced on X, formerly known as Twitter, that it was contemplating a move that would make it mandatory for tech companies in India's own Silicon Valley to prioritise local talent when it came to hiring bench strength, giving preference to locals in 70 per cent of non-management roles and 50 per cent in management-level jobs.

?????? ????? ??????????? ???? ???? ???????????? ??????????? ?????????? ??????????? ??.50 ???? ??????????????? ??????????? ??.75 ??????? ??????????? ?????????? ?????? ???? ???? ????? ????? ??????? ??????.

????????? ?????? ???????? ?????? ???????????????? ???????, ?????????????¡­ pic.twitter.com/Rz6a0vNCBz

¡ª Siddaramaiah (@siddaramaiah) July 17, 2024

Chief Minister Siddaramaiah found himself at the receiving end of online, and offline fury on Tuesday, after he tweeted that the Congress government was mulling such a move to promote and encourage safeguard local talent.

Industry leaders slam Kannadiga reservation bill

India Inc bosses slammed the move, calling it "regressive, discriminatory and polarising", even as social media debated the need for such a bill in the first place.

As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy. @siddaramaiah @DKShivakumar @PriyankKharge https://t.co/itYWdHcMWw

¡ª Kiran Mazumdar-Shaw (@kiranshaw) July 17, 2024

Biocon founder Kiran Mazumdar-Shaw was one of the first to air her dissonance on the bill. The 71-year-old Shaw, who is a Bengaluru resident, reiterated that India's tech capital needs "skilled talent."

Responding to the CM's tweet in which he batted for local Kannadiga talent and said that they "should be given an opportunity to build a comfortable life in the motherland," the Biocon Executive Chairperson emphasised that the move (to provide jobs for locals) should also take cognisance of the fact that Karnataka remains a key technology player and that should not be impacted by this. She urged the government to enforce "caveats that exempt highly skilled recruitment from this policy."

Shaw's sentiments were echoed by PhonePe founder Sameer Nigam. The 46-year-old techpreneur, who set up PhonePe in 2015, recounted his life story as he traced his roots and sense of belonging, reminiscing that his father served in the Navy. In his tweet, the tech tycoon wrote that he builds companies and successfully generates employment. And yet, for someone like him, this move may debar his children from securing jobs in the state if such a policy were to come into effect.

I am 46 years old. Never lived in a state for 15+ yrs

My father worked in the Indian Navy. Got posted all over the country. His kids don't deserve jobs in Karnataka?

I build companies. Have created 25000+ jobs across India! My kids dont deserve jobs in their home city?

Shame.

¡ª Sameer.Nigam (@_sameernigam) July 17, 2024

Veteran tech investor and former Infosys Chief Financial Officer TV Mohandas Pai also added his two cents to the ongoing move. Calling it " discriminatory and regressive", the Padma Shree winner demanded that the bill be "junked" immediately. He also took potshots at the ruling Congress government and called it a "fascist bill as in Animal Farm."

This bill should be junked. It is discriminatory, regressive and against the constitution @Jairam_Ramesh is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment¡­ https://t.co/GiWq42ArEu

¡ª Mohandas Pai (@TVMohandasPai) July 17, 2024

In his tweet, Pai - who has been a critic of the state government- wrote that it is "unbelievable that @INCIndia can come up with a bill like this."

In a separate interview to ANI, the tech tycoon said that reservation was not the correct approach to promote local Kannadigas for jobs, Instead, he said that the state government needs to enhance its higher education budget and train the youth better so that they become skilled.

NASSCOM, the IT industry body, also stepped in, and urged the Karnataka government to roll back the decision. In a statement posted on social media, it said that such a move could have potential negative impacts on the state's economy and overall talent pool. It also cautioned that the bill would end up stifling the thriving environment of startups and discourage future investments.

The bill, which was cleared on Monday, mandates that firms in India¡¯s IT capital prioritise local hires for 70 per cent of non-management roles and 50 per cent of management-level jobs.

Karnataka's Job Quota Bill on hold: CM Siddaramaiah

PTI

Chief Minister Siddaramaiah, after facing online fury, on Wednesday clarified that the draft bill - which was intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises - is still in the preparation stage. He posted on X, stating, "The bill intended to implement reservation for Kannadigas in private sector institutions, industries and enterprises is still in the preparation stage. A final decision will be taken after comprehensive discussion in the next cabinet meeting."

Opportune moment for Andhra Pradesh, Kerala?

Karnataka's loss, if the move of reservation comes through, could end up being Andhra's gain. As soon as an online storm broke out, Nara Lokesh, the IT minister in Chandra Babu Naidu's cabinet, wasted no time in sending out an invitation to tech corporations to set up shop in Andhra Pradesh, promising best-in-class facilities and skilled talent without restrictions.

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¡­ https://t.co/x2N0CTbnfp

¡ª Lokesh Nara (@naralokesh) July 17, 2024

"We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data centre cluster at Vizag," the 41-year-old posted on X.

Kerala, too, sensed an opportunity in Karnataka's crisis, and extended an invitation as well. On Wednesday evening, Industries Minister P. Rajeeve posted on X, wooing industries to invest in Kerala, calling it the right time to discover the state.

¡°Invest in Kerala. Employee talent and merit are the only criteria for recruitment. It is the right time for companies to discover Kerala, with its highly skilled talent pool, the best climate, and a hassle-free environment. Embrace this opportunity,¡± Rajeeve said in the post.

Meanwhile, Karnataka IT minister Priyank Kharge, tried some damage control, and responded in a tweet that the bill would certainly incorporate industry recommendations.

States that have dabbled with similar quotas

In 2019, Andhra Pradesh passed a bill reserving 75 per cent of jobs for locals, which was later deemed potentially unconstitutional by the Andhra Pradesh High Court.

IANS

Similarly, Haryana passed a bill in 2020 reserving 75 per cent of jobs for locals, which is now being challenged in the Supreme Court after the Punjab and Haryana High Court struck it down.

What do you think? Should private corporations in states opt for reservations for the local population? Let us know in the Comments section

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