Karnataka pauses reservation bill for locals in private sector amid criticism from industry leaders

A bill mandating reservations for locals in private sector establishments in Karnataka has been withheld until further consultations are conducted, said state Minister for Commerce and Industries MB Patil on Wednesday.

On Monday, the state Cabinet cleared the Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024. It was expected to be introduced in the ongoing Assembly session.

The bill mandated 50% reservation in jobs in management positions and 75% in non-management positions for locals in industries, factories and other establishments.

Technology industry body National Association of Software and Service Companies had expressed disappointment and concerns about the bill and said it could “force companies to relocate as local skilled talent becomes scarce”.

Following the criticism, Chief Minister Siddaramaiah said in a social media post that the proposed law was still at the stage of preparation.

“A comprehensive discussion will be held in the next cabinet meeting to make a final decision,” Siddaramaiah said on Wednesday.

The draft bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage.

A comprehensive discussion will be held in the next cabinet meeting to make a final decision.— Siddaramaiah (@siddaramaiah) July 17, 2024

Patil said that the Karnataka government was committed to “further creation of jobs for Kannadigas, but...

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