The Congress government in Karnataka went on the defensive after an aggressive push for a '100 per cent reservation' for Kannadigas in the private sector operating in the state following a severe backlash from business honchos and tech tycoons.

The Ministers who approved the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 in the Cabinet meeting on Monday assured industries not to have any fear or apprehensions as they would have more discussions on it.

The state Cabinet on Monday cleared the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, which makes it compulsory for private firms to reserve jobs for Kannadigas.

"Any industry, factory or other establishments shall appoint fifty per cent of local candidates in management categories and seventy percent in non-management categories," the bill read.

If the candidates do not possess secondary school certificates with Kannada as a language, should pass a Kannada proficiency test as specified by the 'Nodal Agency,' it added.

The nodal agency will have powers to call for any records information or documents in the possession of an employer or occupier or manager of an establishment for the purpose of verifying the report.

The government may appoint an officer not below the rank of Assistant Labour Commissioner as the authorised officer for the purposes of compliance of the provisions of the Act.

Karnataka Chief Minister Siddaramaiah on Wednesday deleted his post on 'X' about '100 per cent reservation for Kannadigas'.

He posted another message on the social media platform that the Cabinet approved the bill to fix 50 per cent reservation for administrative posts and 75 per cent for non-administrative posts for Kannadigas in private industries and other organisations.

On Tuesday, he had said, "The Cabinet meeting held yesterday (Monday) approved a bill to make recruitment of 100 per cent Kannadigas mandatory for "C and D" grade posts in all private industries in the state." State Infrastructure Development and Medium and Heavy Industries Minister M B Patil said the government will have wider consultations to protect the interests of Kannadigas as well as the industries.

"Keeping the interests of Kannadigas paramount, I will discuss this issue with Chief Minister Siddaramaiah, IT-BT Minister, Law Minister, and Labour Minister. We will have wider consultations. We will ensure that the interests of Kannadigas are protected, alongside those of the industries," he said on 'X' He said Karnataka is a progressive state, and the government cannot afford to lose in this once-in-a-century race of industrialisation.

"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.

Reacting to the bill, state Minister for Information Technology and Biotechnology Priyank Kharge said, "The Labour Minister (Santosh Lad) had suggested so (bill) and we will be having a wider consultation along with the department of industries and the IT." He said, "We will put forth discussions with the industry as well. This I would like to assure the industry." However, Deputy Chief Minister D K Shivakumar spoke in favour of the bill.

He told reporters here that the Congress came to power in Karnataka to uphold the dignity of Kannadigas, be it the issue of signboards of private establishments, Kannada flag, Kannada language, culture, documents or specific percentage of reservation in jobs for Kannadigas.

Shivakumar clarified that the government will not interfere in technical areas.

"If needed we will give an exemption for technicians," he added.

The industry criticised the bill, saying it was a regressive move showing shortsightedness.

"This bill should be junked. It is discriminatory, regressive and against the constitution. @Jairam_Ramesh Is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of private sector? People have to take a language test?" T V Mohandas Pai, former Chief Finance Officer of Infosys said on 'X'.

Biocon Managing Director Kiran Mazumdar Shaw said, "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy." ASSOCHAM co-chairman R K Misra said on 'X', "Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short sighted." The National Association of Software and Service Companies (NASSCOM) expressed disappointment and concern over Karnataka's new bill mandating reservation for locals in private sector jobs.

In a statement, it said, "Nasscom and its members are disappointed and express deep concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024." "Restrictions could force companies to relocate as local skilled talent becomes scarce," it cautioned.

Karnataka's move is similar to a bill introduced by the Haryana government, mandating 75 per cent reservation in private sector jobs to residents of the state. It was, however, struck down by the Punjab and Haryana High Court on November 17, 2023.