'We understand your disappointment': TDP invites industries to Andhra after Karnataka's 100% quota bill

After Karnataka's 100% reservation bill upset industry leaders, TDP's Nara Lokesh on Wednesday invited industries to set up shop in Andhra Pradesh. "Dear @NASSCOM members, We understand your disappointment," Lokesh, HRD and IT minister in the Andhra government, said in a tweet. "We welcome you to expand or relocate your businesses to our IT, IT services, AI, and data center cluster at Vizag."

Nara Lokesh said his government will offer best-in-class facilities, uninterrupted power, infrastructure, and the most suitable skilled talent for your IT enterprise with no restrictions from the government. "Andhra Pradesh is ready to welcome you. Please get in touch!" he said. 

The Karnataka cabinet has come up with a bill mandating 100% reservation for Kannadigas in the private sector for Group C and D posts. The Karnataka Cabinet cleared the bill on Monday. If the bill becomes law, any industry, factory, or other establishments will have to appoint 50% of local candidates in management categories and 70% in non-management categories. 

The bill triggered a volley of reactions from industry leaders, with most of them calling for immediate withdrawal of the bill. While Biocon's Kiran Mazumdar-Shaw sought a caveat in the bill for skilled labours, former Infosys CFO Mohandas Pai demanded withdrawal of the bill. Pai said this bill should be junked as it is "discriminatory, regressive, and against the constitution".

Apex IT industry body Nasscom expressed deep disappointment and concern over the bill and exhorted the state government to withdraw the bill. The IT industry body has sought an urgent meeting with state authorities to discuss the concerns and "prevent the state's progress from being derailed", the association said. 

"Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill. The bill's provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state," a Nasscom release said. 

Stating that the tech sector contributes to 25% of the state GDP, houses a quarter of the country's digital talent, has over 11,000 startups and 30% of the total GCCs, Nasscom contended that the restrictions could force companies to relocate as local skilled talent becomes scarce. 

Meanwhile, the Karnataka government has assured it will have consultations with industry leaders before coming up with the rules.