'Industry Leaders Need Not Panic': After Backlash, Karnataka Pauses Bill Backing Quota For Locals In Private Jobs

The Karnataka government has put on hold a bill mandating reservation for locals in the private sector. The state government is likely to go for wider consultation and bring in a new draft at a much later stage. The latest development comes amid huge backlash over the bill.

The Karnataka cabinet will discuss the issue in detail in the next cabinet meeting and decide on the future course of action.

“The bill approved by the cabinet to provide reservations for Kannadigas in private sector organizations, industries and enterprises has been temporarily put on hold. This will be revisited and decided in the coming days,” Karnataka Chief Minister Siddaramaiah said in an X post.

Karnataka Minister MP Patil also assured that “industry leaders need not panic” and the government is committed to further creation of jobs in a more “amicable manner”.

“Honble CM has taken due cognizance. Bill is withheld until further consultations and due diligence. Industry leaders needn’t panic as assured. The government is committed to further creation of jobs, and furthermore for Kannadigas, however in a more amicable manner,” Patil wrote in an X post.

Earlier in the day, the Karnataka cabinet approved a bill mandating 100 per cent reservation to Kannadigas, or local residents, for C and D-grade posts in private industries. However, Chief Minister Siddaramaiah, who made the announcement in a social media post, deleted it after severe criticism from IT firms.

The move was widely criticised by IT firms with Nasscom raising concerns over the bill, saying could hamper the growth of the industry, impact jobs, and force companies to relocate.

Amid row over the bill, Andhra Pradesh minister Nara Lokesh welcomed IT firms to “relocate businesses” in Vizag. The TDP MLA was quick to point out that Andhra Pradesh is “ready” with the “most suitable skilled talent for your IT enterprise with no restrictions from the Government”.

“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!” the Mangalagiri MLA wrote in an X post.