The other day, Telugu Desam Party general secretary and Andhra Pradesh Information Technology minister Nara Lokesh extended an open invitation to Nasscom members to set up software companies in Visakhapatnam.
This came after the Karnataka Government introduced new legislation reserving 75% of private sector jobs, including those in software companies, for Kannadigas.
Responding to Nasscom's disappointment over the proposed Karnataka legislation, Lokesh welcomed Bengaluru's software companies to expand or relocate their businesses to the IT, IT services, Artificial Intelligence (AI), and data center cluster in Visakhapatnam.
However, Lokesh seems to have overlooked that a similar law already exists in Andhra Pradesh.
The previous Y S Jagan Mohan Reddy government passed the Andhra Pradesh Employment of Local Candidates in the Industries and Factories Act, 2019, which reserves 75% of private sector jobs for locals.
Therefore, even if software companies want to move from Bengaluru to Visakhapatnam, they would encounter the same situation in Andhra Pradesh. If Lokesh is aware of this law, he might be considering repealing it to remove the 75% local quota rule.
This potential change has sent positive signals to the industry and business enterprises. Lakshmi Mukkavilli, president of the IT Association of AP (ITAAP), said it would be good news if such a decision is made.
She told Bizz Bizz that merit should be the criterion for jobs in the corporate sector and that opportunities should be given to all meritorious candidates from across India, with a preference for locals.
Entrepreneurs and corporate executives noted that local employment helps prevent attrition as long as talented manpower is available, regardless of whether there is a law.
At the same time, this creates a tricky situation for the TDP government. Depriving locals of jobs in the local industry could lead to a strong political backlash.
The YSRCP will likely leverage local sentiment to gain political mileage, putting the Chandrababu Naidu government in a difficult position, sources said.
