Hyderabad: Wading into the controversy triggered by the proposal to introduce reservation to Kannadigas in private jobs, Andhra Pradesh's new IT and industries minister, Nara Lokesh, welcomed NASSCOM members and IT companies to the state.
On Wednesday, NASSCOM issued a strong statement, stating that its members are disappointed and expressed deep concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.
NASSCOM said that the tech sector contributes to 25 percent of Karnataka's GDP, houses a quarter of the country's digital talent, over 11,000 start-ups, and 30 percent of the total global companies. Restrictions could force companies to relocate as skilled local talent becomes scarce. In today's highly competitive landscape, knowledge-led businesses will locate where talent is, as attracting skilled workers is crucial for success.
Even as NASSCOM flagged its concerns, Lokesh had posted on X “Dear NASSCOM members, We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI, and data centre cluster at Vizag. We will offer you best-in-class facilities, uninterrupted power, infrastructure, and the most suitable skilled talent for your IT enterprise with no restrictions from the government. Andhra Pradesh is ready to welcome you. Please get in touch.”
Jobs for youth was one of the major plans on which the TDP-led NDA combine came to power in Andhra Pradesh 35 days ago, dethroning the incumbent YS Jagan Mohan Reddy government.
While the previous YSRCP government had mainly focused on welfare schemes, there were high hopes for N Chandrababu Naidu, who was credited with building Cyberabad and Hitech City in Hyderabad, which had now rivalled Bengaluru as an IT hub in south India.
Though Naidu's son Lokesh earlier tenure as state IT minister during the TDP's earlier stint in the divided Andhra Pradesh didn't yield much result, he is now focusing and burning midnight oil to promote the brand Andhra by attracting IT companies that provide jobs to local youth.
In the divided state of Andhra Pradesh, Vizag boasts an ecosystem that is well-suited for the IT sector. However, aside from small IT firms, Vizag has failed to attract any big-ticket IT investments in the last ten years. Lokesh is wooing IT firms to set up shop here in Vizag.
Interestingly, in 2019, the Andhra Pradesh Assembly passed a similar bill, the Andhra Pradesh Employment of Local Candidates in the Industries/Factories Bill, reserving 75 percent of jobs for locals. However, the issue is pending in the Andhra Pradesh High Court.
During the discussion on the bill in the state assembly, the then chief minister, YS Jagan Mohan Reddy, said that with this legislation, a situation will be created where people will accept industry and come forward to give their lands. He also said that existing industries get three years to provide 75 percent of jobs to locals.