Amid the concerns from industry circles over the proposed Karnataka’s draft Bill mandating reservation for locals, and subsequently which was put on hold, Andhra Pradesh IT, Electronics and Human Resource Development Minister Nara Lokesh on Wednesday, July 17, 2024, extended an open invitation to NASSCOM members to set up shop in Andhra Pradesh.
“We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data center cluster at Vizag,”, he said in a post in X (formerly Twitter).
The National Association of Software and Service Companies (NASSCOM) expressed disappointment over the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.
The IT industry body observed that the restrictions mandated by this bill "could force companies to relocate as local skilled talent becomes scarce".
Amid this backdrop, Mr. Lokesh welcomed IT services, Artificial Intelligence (AI) and related companies to relocate and expand in Andhra Pradesh..
The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, was cleared in the Cabinet meeting chaired by Mr. Siddaramaiah on July 15.
It mandates that industries, factories, and other establishments appoint local candidates in 50% of management positions and 70% in non-management positions.
As the draft Bill cleared by the Karnataka Cabinet garnered adverse reactions from industry heads and trade bodies in the State, the government late on Wednesday, July 17 announced that it had been “temporarily withheld” and a decision would be taken later after a review.
(With inputs from PTI)
