Karnataka Government temporarily suspends private sector quota bill for further considerations
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Abhijay Raj Vaish, Pune

The Karnataka Government on Thursday decided to withhold the Private Sector quota bill amid backlash from several CEOs and industrial bodies citing it to be discriminatory. The Bill was earlier approved by the State cabinet to provide 100 percent reservation to Kannadigas in the bracket C and D jobs in private companies. 

The Congress manifesto in 2023 had promised the public to provide 80 percent reservation to locals in both private and public sector jobs in the state. Chief Minister Siddaramaiah had earlier said that the bill was cleared to reserve 70 percent of jobs in the non-management sector while reserving 50 percent of management vacancies in the private sector on Tuesday. However, he later deleted this post on Wednesday declaring a 100 percent reservation in Group C and D jobs for Kannadigas. 

The Bill was approved after several rallies were held across Karnataka for the implementation of the Sarojini Mahishi report of 1984, which supports quotas in state and private sector jobs for Kannadigas. 

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was met with fierce resistance by CEOs and industries alleging that the proposed law would drive away the companies along with leaving them with a scarce talent pool. Several industries and heads such as Bitcoin founder Kiran Mazumdar Shaw, Nasscom, and Mohandas Pai among others criticized the move as being discriminatory. The opposition led by the BJP along with other leaders mentioned how the bill would adversely affect the IT sector which the state boasts in abundance. Several Kannadiga outfits congratulated the CM on the move while also garnering support from Union Minister Ramdas Athawale. Due to the controversy, TDP MLA Nara Lokesh asked the IT firms to relocate to Vizag in Andhra Pradesh claiming to foster a conducive environment for their companies. 

The State government has now decided to temporarily suspend the bill until further consideration and due diligence. It will now re-evaluate the provisions of the bill which is still in the preparation stage and has urged the industry leaders to not panic until a final decision is reached in the next cabinet session.