'No need to worry,' DK Shivakumar assures investors on 100% quota bill, says govt wants talented people to work in Karnataka

Karnataka Deputy Chief Minister DK Shivakumar on Wednesday sought to allay the fears of industry over the state's 100% quota bill, saying no investors need to worry. He said the government wants investors to come to Karnataka, but it will see where it could accommodate Kannadigas.  

"No investors need to worry. We want investors to come to Karnataka," he said while speaking to reporters. "There are certain sections of the people who are talented and have come from outside the state. We want them to work in Karnataka. Bengaluru's population has grown to 1.4 crores because of the outsiders coming here to work. We just want to give them scope. We are more worried than both the employer and the employee. We will see where we can accommodate Kannadigas." 

The Karnataka Cabinet has approved a bill mandating 100 per cent reservation for Kannadigas in the private sector for Group C and D posts. If the bill is passed, any industry, factory or other establishments will have to appoint 50 per cent of local candidates in management categories and 70 per cent in non-management categories. 

The bill faces massive pushback, with industry bodies and entrepreneurs demanding the state to withdraw it. 

Trade association National Association of Software and Service Companies (NASSCOM) said the bill's provisions threaten to reverse the progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state. "At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce,” it said on Wednesday. 

The industry body also sought an urgent meeting with industry representatives and state authorities to discuss the matter and “prevent the state’s progress from being derailed”. It underscored the importance of the technology sector for Karnataka’s economic and social development. The technology sector of India’s ‘Silicon Valley’ contributes 25 per cent of the state GDP, it said. The state houses 30 per cent of the total GCCs and around 11,000 startups, it pointed out. 

Former Infosys CFO Mohandas Pai said this bill should be junked. "It is discriminatory, regressive, and against the constitution.

Meanwhile, Karnataka Minister for Commerce and Industries, Infrastructure, MB Patil said that there would be wider consultations to ensure that the interests of Kannadigas are protected along with that of the industries. "Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialization. We will make sure that everyone's interests are safeguarded. The Industries are assured that they need not have any fear or apprehensions and can rest assured," he said. 

Minister for Electronics, IT, Priyank Kharge also said, "The bill has been brought in by the labour department. They are yet to consult with the industry, the Minister of Industry, and the Department of Information Technology. I am sure that before coming up with the rules of the bill, they will have due consultations with the respective ministries and more importantly, a wider consultation with the industry. So there is no need to panic.”