New industrial units in Karnataka that fail to provide jobs to Kannadigas will have to cough up all the incentives and concessions availed of to set up the project. The Siddaramaiah regime has conceded demands from local activist groups, and its new industrial policy requires all new proposals to ensure maximum number of Kannadigas are given jobs in return for all the sops and tax breaks. The policy, which will stay in force up to March 2019, requires all new projects to provide a minimum 70% jobs to Kannadigas on an overall basis and 100% in respect of “Group D” employees. In government offices, regular workers at the lowest rung of the hierarchy are called “Group D” employees.
Since he assumed office last year, Chief Minister Siddaramaiah has chaired five high-level clearance committee meetings and has cleared investment proposals worth Rs.50,000 crore.
The 96-page policy said that the District Industries Centres (DIC) will monitor for the first five years whether the new industrial units have complied with the minimum jobs for Kannadigas. The DICs, the policy said, will report lapses, if any, on this front to the district-level or state-level single-window clearance committee or the high-level clearance committee headed by the chief minister, and recommend recovery of incentives and concessions sanctioned to the unit.
The industry, however, is sceptical about the idea. Manipal Global Education Service chairman TV Mohandas Pai felt the government should not stress on the requirement because there are more jobs available in Karnataka.
Food industry veteran and founder of Maiyas Beverages and Foods, Parampalli Sadananda Maiya, endorsed Pai’s views. According to Maiya, the policy would not work in many sectors due to scarcity of local talent.
Former Infosys director and AAP leader V Balakrishnan also criticised the quota approach. According to him, the government should look more at job creation and increasing the supply of jobs rather than creating quotas, which is an outdated idea.
Since he assumed office last year, Chief Minister Siddaramaiah has chaired five high-level clearance committee meetings and has cleared investment proposals worth Rs.50,000 crore.
The 96-page policy said that the District Industries Centres (DIC) will monitor for the first five years whether the new industrial units have complied with the minimum jobs for Kannadigas. The DICs, the policy said, will report lapses, if any, on this front to the district-level or state-level single-window clearance committee or the high-level clearance committee headed by the chief minister, and recommend recovery of incentives and concessions sanctioned to the unit.
The industry, however, is sceptical about the idea. Manipal Global Education Service chairman TV Mohandas Pai felt the government should not stress on the requirement because there are more jobs available in Karnataka.
Food industry veteran and founder of Maiyas Beverages and Foods, Parampalli Sadananda Maiya, endorsed Pai’s views. According to Maiya, the policy would not work in many sectors due to scarcity of local talent.
Former Infosys director and AAP leader V Balakrishnan also criticised the quota approach. According to him, the government should look more at job creation and increasing the supply of jobs rather than creating quotas, which is an outdated idea.
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