Investors either expanding their units in the state or setting up new ones will have to increase the number of jobs they provide, as per the new Karnataka Employment Policy 2022-25 that the Cabinet approved on Friday.
The policy is aimed at generating more employment in the state as job opportunities are dwindling, Law Minister J C Madhuswamy said.
"There were specific guidelines on how various units should provide employment. (Under the new policy) the number of jobs should be increased and locals should be employed," he said. The increase in the number of jobs varies depending on how the industry is categorised.
For instance, if an industry classified as medium scale - where minimum employment is 20 - agrees to create seven more jobs, then the policy will allow for an additional investment of upto Rs 10 crore. Similarly, if a unit plans on increasing working capital by Rs 50 crore, it has to create a minimum of 30-50 jobs. If the investment is Rs 100 crore, minimum 35 additional jobs should be created, he said.
The government has also increased the minimum job generation requirement of industries, Madhuswamy said.
Ultra mega units, which were earlier required to create a minimum of 400 jobs, will now have to generate 510. Minimum job requirement of large scale industry will now be 60 from 50 earlier, and that of a medium-scale industry is now 20 from 10-15 earlier.
If the companies have to invest additionally, they will have to create extra jobs based on the criteria explained in the policy, Madhuswamy said.