Written bySiddhant Pandey
Andhra Pradesh, on Monday, became the first Indian state to reserve jobs for locals by passing the Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019, in the state assembly.
Here are more details.
Reportedly, the 75% reservation applies to all private industrial units and factories, notwithstanding any financial help these companies may/may not receive from the government.
Additionally, the law states that if locals with the required skills aren't available, companies would have to train them, in association with the government.
This ensures that companies wouldn't excuse themselves out of the quota, citing non-availability of skilled labor.
According to reports, companies in the state are mandated to follow the provisions within three years of the commencement of the act. Additionally, they would also have to submit quarterly reports about local appointments to a nodal agency.
Speaking to The Times of India, Amara Raja Group President and Confederation of Indian Industry (CII)-Andhra Pradesh Chairman, Vijay Naidu Galla, hailed the act as "it gives an indication of the government's policy to promote local hiring in the state."
However, he added, that the government would now need to "ramp up its skill development centers in the state to train locals."
National President of the Federation of Small and Medium Enterprises of India (FSME India), APK Reddy, also appreciated the move saying that it's the "need of the hour as unemployment is at its peak in Andhra Pradesh," The Hans India reported.
Highlighting concerns about the act, former CII Vizag chairman and Fluentgrid MD G Muralikrishna told The New Indian Express that punishing companies for non-compliance could leave investors second-guessing before coming to the state.
He said the government should offer incentives instead to encourage local hiring.
He also said that startups should be given a gestation period of 3-5 years to comply with the provisions.
While Andhra Pradesh is the first in line to come up with such a law, others, too, are looking at reserving jobs for locals.
The states of Karnataka, Maharashtra and Gujarat are also demanding a similar law.
Love India news?
Subscribe to stay updated.