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Bengaluru: Apex IT industry body Nasscom has expressed deep disappointment and concern over Karnataka's quota-for-locals bill mandating reservation for locals in private sector, and has exhorted the state government to withdraw the bill.

Nasscom's strong note of dissent assumes significance as it adds to the growing chorus of top industry voices, which have warned that the legislation would erode the state's edge in technology, and reverse the progress made so far.

The IT industry body has sought an urgent meeting with state authorities to discuss the concerns and "prevent the state's progress from being derailed", the association said.

"Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill. The bill's provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state," a Nasscom release said.

Stating that the tech sector contributes to 25 per cent of the state GDP, houses a quarter of the country's digital talent, has over 11,000 startups and 30 per cent of the total GCCs, Nasscom contended that the restrictions could force companies to relocate as local skilled 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... For states to become a key technology hub a dual strategy is key - magnet for best talent worldwide and focussed investment in building a strong talent pool within the state through formal and vocational channels," it said.

The technology sector has been crucial to Karnataka’s economic and social development, with Bengaluru known globally as India's Silicon Valley.

"The technology sector contributes almost 25 per cent of the state GDP and has played a key role in enabling higher growth for the state, higher per capita income than the national average. With over a quarter of India’s digital talent, the state houses over 30 per cent of the total GCCs and around 11,000 start-ups," it said.

Nasscom rued that it is "deeply disturbing" to see this kind of bill which will not only hamper the growth of the industry, but impact jobs and the global brand for the state.

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was approved by the state cabinet on Monday, and it seeks to reserve 50 per cent of management positions and 75 per cent of non-management positions in the private sector for locals.

The Bill has triggered controversy and criticism from across industry. Industry veteran Mohandas Pai termed the Bill "very regressive", and "draconian".

The Karnataka Congress on Monday junked reports that the State Road Transport Corporation would be hiking bus fares. The party on X noted that transport minister has not placed any such proposals before the government.

The party's account further noted that BJP leaders should 'stop spreading lies' and rather answer about the increase in auto part prices, fuel prices, and train fares in the last ten years.

Karnataka Congress, in the post, continued that people should be allowed to answer about the burden on state governments due to the central government's price hike policy.

BJP leaders like Tejasvi Surya took potshots at the Congress government over news of the alleged fare hike, attributing it to the party's 'Khatakhat Model of Governance.'

KSRTC chairperson, S R Srinivas, however said on Sunday that the body has submitted a proposal to the government to hike the fare by 15 to 20 per cent.

"We had a board meeting two days ago. We have proposed a hike of 15 per cent to 20 per cent. The rest is up to the discretion of Chief Minister Siddaramaiah. If KSRTC is to survive, fare hike is inevitable," he said.

The chairperson also noted that fuel and auto parts have seen prices go up substantially, but there has been no increase in bus fares since 2019.

"The salary revision of the KSRTC employees has not been done since 2020. Hence, increasing the ticket price is necessary," Srinivas added.

As per the chairperson, the corporation has suffered a loss of Rs 295 crore in the last three months.

To a question on whether the hike would burden male passengers since women are allowed to travel free of cost under the 'Shakti' scheme, Srinivas said there is no question of putting burden only on men. He noted that the state government continues to bear the expenses for women travelling in buses.

Bengaluru: The Karnataka cabinet on Monday approved implementation of the Seventh Pay Commission’s recommendations, effecting a 27.5% increase in basic pay from August 1, 2024, and benefiting 12 lakh state govt employees and pensioners.

The commission, led by former chief secretary K Sudhakar Rao, was constituted in November 2022 with a six month mandate.

The final report was submitted to chief minister Siddaramaiah before Lok Sabha elections were announced in March 2024.

The commission’s recommendations include raising the minimum salary for govt employees from Rs 17,000 to Rs 27,000 a month.

The implementation is expected to widen the revenue expenditure of the Karnataka govt by Rs 20,000 crore annually. The most considerable expenditure will be the burden of Rs 7,409 crore for salaries, followed by Rs 3,791 crore for pensions and family pensions each year.

The decision comes after the previous BJP govt, just before the 2023 assembly elections, granted interim relief with a 17% salary hike for govt employees, leaving the remaining 10.5% for future discussions.

After Congress govt took office, it faced pressure to fulfil five poll guarantees and delayed the decision.

The employees, during an executive committee meeting held recently in Chikkamagaluru, decided to launch a three-phase protest culminating in an indefinite strike planned from July 29. This appears to have pressured the govt.

"We welcome the decision for providing employees with 27.5% salary hike," said Shadakshari, state president of Karnataka state govt employees' association.