Karnataka govt will provide industry-ready skills for locals, no need for businesses to panic: IT minister Priyank Kharge

"The state government's vision is to ensure that we provide more job opportunities for locals and equip them with the best industry-ready skill sets so they are not only employed locally but also globally," said Kharge.

The government is also under pressure as neighbouring Andhra Pradesh and Kerala are wooing investors amid the controversy.

Also read: 'Andhra ready to welcome you': Nara Lokesh to Nasscom amid backlash over Karnataka quota decision

On TDP leader and minister Nara Lokesh's letter to the National Association of Software and Service Companies (Nasscom) inviting enterprises to Andhra Pradesh, Kharge said: "Andhra Pradesh first proposed a bill giving reservations for locals, which was later stayed by the high court. I would advise them to address what has happened there and then come back to us."

Nasscom had said the bill would force businesses to relocate. Other industry bodies, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) and the Confederation of Indian Industry (CII), also slammed the bill.

Also, read: Nasscom wants Karnataka to scrap bill reserving jobs for locals in private sector

Kharge said, "I've spoken to the NASSCOM and assured them there is nothing to worry about. Karnataka has always remained a progressive state, and we will continue to be progressive. We will collaborate with them like never before to ensure that more investments come to Karnataka and more jobs are created."

Responding to a query about whether it will have an impact on the state's Global Capability Centres (GCC) policy, Kharge said, "Absolutely nothing. The bill has not been implemented yet, so industries should not worry as nothing will happen without their consultation."

Also, read: Karnataka set to be the first state to come up with GCC policy by August

Sources said information technology and biotechnology (IT & BT) and industries and commerce departments were not consulted on the Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, which was drafted by the labour department. Kharge and Industries minister MB Patil were reportedly unhappy as Labour Minister Santosh Lad pushed these two bills without taking them into confidence, sources said.

Lad said, "There is no dearth of talent in Karnataka. We are open to discussions. If adequate skills are not available in the state, industries can outsource from other states".

Also, read: Karnataka job quota-for-locals bill: IT-BT and Commerce and Industries departments kept in the dark

Draft bill

The bill, cleared by the cabinet on July 15, calls for 50 percent of management jobs and 70 percent of non-management roles to be reserved for locals (Kannadigas).

The cabinet also cleared another proposal for a 100 percent quota for Kannadigas in Group C and Group D jobs in the private sector.

The opposition BJP has accused the Congress-led government of trying to divert attention from alleged scams. "The @INCKarnataka Govt's ploy to bring up the issue of reservation for Kannadigas in private sector jobs is nothing but sinister politics to divert people's attention from its series of scams and failures," leader of the opposition in the Karnataka assembly R Ashok posted on X.

Meanwhile, Health Minister Dinesh Gundu Rao, Revenue Minister Krishna Byre Gowda, IT-BT and Rural Development Minister Priyank Kharge, and Labour Minister Santosh Lad addressed a joint press conference at the Vidhana Soudha on July 18, a day after the government decided to hold the draft bill. However, they refused to comment on the draft bill.

They alleged that the Enforcement Directorate (ED) is functioning as an extended political wing of the party and is targeting only parties that oppose the ideology of BJP and RSS. ED had arrested B Nagendra, former ST  welfare minister on July 12 under the provisions of the Prevention of Money Laundering Act, 2002, in connection with the Karnataka Maharishi Valmiki ST Development Corporation Limited case.