Andhra Pradesh has become the first state in India to offer 75 percent reservation to locals in private jobs. Yesterday, the Andhra Pradesh Assembly passed the Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019, under which privates jobs across factories, industrial units, joint ventures, private projects will be reserved for local Andhra people.
The act follows the poll promises made by Chief Minister Jagan Mohan Reddy, wherein he had promised to create jobs for locals. "The proposed Bill will ensure employment to 75 percent of the local candidates in industries/factories, joint ventures, and projects taken up under the PPP mode," a government notification stated.
While other states are also mulling high reservation in private jobs for residents, they haven't yet implemented it. This month, the Madhya Pradesh government had announced that it would bring in a legislation to provide 70 percent reservation in private jobs for locals.
The new law in Andhra will now mean that private companies will have to train locals if people with suitable skills are not available, in association with the government. "This will help the person who has lost their lands and their occupations for facilitating the establishment of industries and other unemployed youth by ensuring that their livelihoods are guaranteed and sustained," said the government in a statement.
Companies will have to comply with these provisions within three years of the commencement of the act and will also have to furnish quarterly reports about local appointments to a nodal agency.
While the act may boost local employment in the state, but it also means that the government will have to ramp up skill development centers in the state in order to train locals to be ready to be hired in manufacturing and IT firms. Will the government be able to deliver on this, remains to be seen. For companies, it means they will have to source the maximum of their talent from the local supply, which might be a daunting task in the beginning.