Hyderabad: The controversy over the Congress-led Karnataka government’s decision to bring in legislation reserving 100 per cent jobs for locals in private sector may find its echo in the two Telugu states.
Trying to take the first mover advantage, Andhra Pradesh human resources development Minister Nara Lokesh invited Nasscom members to expand or relocate their businesses to the IT, IT services, AI and data centre cluster at Visakhapatnam. He was reacting to a statement by Nasscom taking serious objection to the proposed Karnataka State Employment of Local Industries Factories Establishment Act 2024 which Chief Minister Siddharamaiah of the neighbouring state said would reserve 100 per cent jobs to locals in the private sector if the industry availed state incentives. Later, he removed the post from the social media platform X.
But, Nasscom issued a statement in which it said “the Bill’s provisions threaten to drive away companies, and stifle start-ups, especially when more global firms (global capacity centres) are looking to invest in the state. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce.”
Maintaining that he could understand the disappointment of Nasscom (over Karanataka’s move), Lokesh said AP would offer “best-in-class facilities, uninterrupted power, infrastructure and the most suitable skilled talent for your IT enterprise with no restrictions from the government.”
However, for the TD-led NDA government in Andhra Pradesh to assure industry of “no restrictions”, it has to repeal legislation brought out by the previous Y.S. Jagan Mohan Reddy government. In 2019, AP was the first state in the country to enact legislation reserving 75 per cent of job for locals and made it applicable to all private companies whether or not they availed of the incentives from the government.
The legislation, however, remained more on paper with the Jagan Mohan Reddy government making no effort to ensure its implementation. “It remained more of a political rhetoric. Instead, the government may improve the skills of local youth, create a talent pool and encourage the industry to make use of the talent instead of forcing them with a law,” a senior state official told Deccan Chronicle.
In Telangana, the Pradesh Congress Committee led by Chief Minister A. Revanth Reddy had promised in the 2023 election manifesto to reserve 75 per cent reservation to locals in industries set up with government incentives. After being elected to power, the party did not make any move on bringing the legislation.
The previous Bharata Rashtra Samithi government took a firm stand against reservations for locals and instead promised incentives to those who engaged locals.