Lokesh promises facilities, power, infra to potential entrepreneurs in AP
Hyderabad: The controversy over the Congress-led Karnataka government’s decision to bring in legislation reserving 100 per cent jobs for locals in private sector — since rescinded — may find its echo in the two Telugu states.
Trying to take the first mover advantage, AP human resources development minister Nara Lokesh invited Nasscom members to expand or relocate their businesses to the IT, IT services, AI and data centre cluster at Visakhapatnam. He was reacting to the Nasscom taking serious objection to the proposed Karnataka State Employment of Local Industries Factories Establishment Act, 2024 which Chief Minister Siddharamaiah of the neighbouring state said would reserve 100 per cent jobs to locals in the private sector if the industry availed state incentives. He later removed the post from the social media platform X.
But, Nasscom issued a statement saying: “The Bill's provisions threaten to drive away companies, and stifle start-ups, especially when more global firms (global capacity centres) are looking to invest in the state. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce.”
Maintaining that he could understand the disappointment of Nasscom, Lokesh said AP would offer “best-in-class facilities, uninterrupted power, infrastructure and the most suitable skilled talent for your IT enterprise with no restrictions from the government.”
However, for the TD-led NDA government in Andhra Pradesh to assure industry of “no restrictions”, it has to repeal legislation passed by the previous Y.S. Jagan Mohan Reddy government. In 2019, AP was the first state to reserve 75 per cent of job for locals by law, and made it applicable to all private companies whether or not they availed of government incentives.
The legislation remained on paper. “It remained more of a political rhetoric. Instead, the government could improve the skills of local youth, create a talent pool and encourage the industry to make use of the talent instead of forcing them with a law,” a senior state official told Deccan Chronicle.
In Telangana, the Pradesh Congress Committee led by Chief Minister A. Revanth Reddy had promised in the 2023 election manifesto to reserve 75 per cent jobs to locals in industries set up with government incentives. After being elected to power, the party has not made any move to bring in the quota legislation.
The previous BRS government had taken a firm stand against reservations for locals and instead promised incentives to those who engaged locals. Then IT minister K.T. Rama Rao had opposed the quota for locals as it was proving counterproductive in states where it was implemented.
When contacted on Wednesday. Rama Rao chose not to comment on party’s stand in the wake of the Karnataka developments.
