Policy Talk | Many in IT sector from Haryana itself: Deputy CM Dushyant Chautala on 75% private sector reservation row

Haryana Deputy Chief Minister Dushyant Chautala defended the government’s decision to implement 75 percent reservation for locals in certain private sector jobs, saying his state was not the first to launch such a move and it did not have a dearth of talent.

“A large number of IT employees in the sector are from Haryana,” he told Moneycontrol in an interview, in an apparent message to companies worried that they might not have enough skilled workers to hire from the state.

Chautala is the leader of the Jannayak Janta Party (JJP), a coalition partner of the Bharatiya Janata Party-led (BJP) government in Haryana.

On March 2, the state government passed the Haryana State Employment of Local Candidates Bill, which mandates 75 percent reservation for locals in private sector jobs, where the salary is less than Rs 50,000 a month.

The move was roundly criticised by industry, including veterans such as  RC Bhargava, chairman, Maruti Suzuki India, which runs a plant in Gurgaon. Bhargava said the state government had taken a step in the wrong direction.

Reacting to the criticism, Chautala said: “I want to remind Mr. Bhargava that he was present in the video conference that was held to implement this policy as a law.”  “He (Bhargava) also gave suggestions on this matter. He was in favour of implementing this reservation in posts where the gross monthly salary or wages is not more than Rs 50,000,” he told Yatish Rajawat, CEO of the think tank Center for Innovation in Public Policy (CIPP) and host of the Policy Talk podcast for Moneycontrol.

Bhargava did not comment for the story.

Allaying industry concerns after the backlash, Chief Minister Manohar Lal Khattar told Moneycontrol that the reservation rule would be applicable only for non-technical jobs. “The 75 percent reservation in private sector jobs for Haryana locals is only for those with salaries below Rs 50,000 per month. That, too, only for non-technical jobs. This reservation rule is not being implemented on technical jobs,” Khattar said in an interview with Moneycontrol.

Khattar also said that the labour inspector would not trouble industry about these reservations and only the State labour commissioner would have the jurisdiction to investigate compliance. “Industry will have to give self-declaration that they have complied with the law and we will accept that.”

In the interview, Chautala touted the state’s business credentials and underlined its importance as an investment destination, noting that that eight large IT companies were planning to invest in Haryana.

“We also had a discussion with Maruti on the company’s new plant. We are ready to give them land in Kharkhoda. If they pay the land price at once, then we can give them land at 10 percent less than the reserve price. Amazon is also looking for a land for its warehouse in Kharkoda.”

Chautala’s party, the JJP, however, is facing a lot of heat from farmers over the issue of the Central government’s new farm laws. The pressure from the farmers has also affected the routine work of the state government, said Chautala, noting that the State’s coalition government was working hard despite these difficult circumstances.