Hindustan Times (Noida)

Job quota law regressive, say Ggm industry leaders

- Abhishek Behl abhishek.behl@hindustant­imes.com

GURUGRAM: Informatio­n technology, auto and export companies based in Gurugram on Wednesday said that the Haryana government’s decision to reserve 75% jobs for local jobseekers who have a state domicile will signal that the city and the state were no more businessfr­iendly destinatio­ns.

While IT industry leaders termed the government’s new law as regressive, industrial­ists based in Manesar questioned the legality of the quota and said that they were looking for possibilit­ies to challenge the government decision in a court of law as it will enable “another era of inspector raj in the state”.

Haryana governor, Satyadev Narayan Arya, on Tuesday gave his assent to the Haryana State Employment of Local Candidates Bill, 2020, which provides for 75% reservatio­n in private sector to job seekers in the state which have a salary of less than ₹50,000 per month in private companies, societies, trusts, limited liability partnershi­p firms, partnershi­p firms. The quota will initially be applicable for 10 years, after it is notified by the government.

Haryana deputy chief minister Dushyant Chautala, who made the job quota a central plank of his election campaign in 2019, on Wednesday said the state government will begin a massive employment campaign from next month for youths of the state to benefit, as per their qualificat­ion and skills.

Chautala, however, also made it clear that the government will make an exemption in the reservatio­n if a company fails to find local skilled employees.

Stating that there is a provision of penalty if the firms violate rules of this law, he said private companies will have to mandatoril­y give complete details of their registrati­on and employees on the portal.

More than 300 Fortune 500 companies are headquarte­red in Gurugram that has emerged as one of the largest IT and Ites hub in the country with several top companies setting up operations in the last two decades. It is also home to large auto and auto part makers such as Maruti, Hero Moto Corp and Honda, while garment exports also forms a major chunk of industry.

Vinod Sood, managing director, Hughes Systiqe and chair, NASSCOM, Haryana, said that the new law and will send a very wrong message to MNCS and IT companies, which are headquarte­red abroad. “While all other states in India are coming up with forward-looking policies, this reservatio­n will create a perception that Gurugram is no longer a business-friendly destinatio­n. Companies abroad

don’t want to get into such technicali­ties and their immediate response would be to expand or shift to Mumbai, Bengaluru, Hyderabad. The reservatio­ns might have some caveats, but optics are bad, and don’t augur well for the city,” said Sood.

IT companies also said that instead of imposing reservatio­ns there is need to skill train local youths for these jobs.

“We appreciate the desire of the government to create jobs for local youths. However, it is ironic that an industry that competes around the world and brings nearly ₹5 lakh crore in foreign exchange into India will have to deal with these restrictio­ns that may hamper its operations and efficiency. We are also nervous that the current scope of reservatio­ns may be expanded later. We believe the best way to expand opportunit­ies for youth is equipping them with skills,” Manas Fuloria, CEO, Nagarro, a city-based IT company.

Industrial­ists based in Manesar were also worried that the job reservatio­ns will bring back the era of ‘inspector raj’ and it would be difficult to run industrial units. “Where are the workers in Haryana who are experts in leather cutting, fabric stitching, cutting, weaving. These jobs

need talent and is mastered when generation­s work on the same skill set. This move will destroy the export industry and other manufactur­ing units in Gurugram and Haryana. We are looking for options to challenge this move in a court of law,” said Manmohan Gaind, vice president, Manesar Industries Welfare Associatio­n, who heads an export company.

The Confederat­ion of Indian Industry’s Haryana chapter said that Haryana was already facing a tough competitio­n in attracting industrial investment as other states are offering liberal industrial policies and employment incentive schemes. The government’s new move will prove to be quite the deterrent to bring in new investment­s.

“The law will act as a blow to the industry-friendly image of Haryana. This law is detrimenta­l to the economic growth of Haryana and will impact existing businesses present in the state by slowing down investment­s and further deteriorat­ing the state’s ease of doing business ranking,” said Anadi Sinha, vice chairman, CII Gurugram zone and group president - HR and corporate affairs, Minda Industries Ltd, which has large presence in the city.

The law will act as a blow to the industry-friendly image of Haryana. This law is detrimenta­l to the economic growth of Haryana.

ANADI SINHA, Cii-gurugram

 ?? HT ARCHIVE ?? Participan­ts at a job fair in Gurgaon. Haryana deputy chief minister Dushyant Chautala, on Wednesday said the state will begin a massive employment campaign from next month.
HT ARCHIVE Participan­ts at a job fair in Gurgaon. Haryana deputy chief minister Dushyant Chautala, on Wednesday said the state will begin a massive employment campaign from next month.

Newspapers in English

Newspapers from India