Southern Gaza now facing 'worst bombardment' since the beginning of Israeli aggression: UNICEF

New Delhi: The Centre has ruled out any plan to give a special category status to Bihar, a core demand by its key ally, the Janata Dal (United), prompting the Rashtriya Janata Dal to take a swipe at JDU leader and Bihar Chief Minister Nitish Kumar.  

Ramprit Mandal, JDU MP from Bihar's Jhanjharpur, had asked the Finance Ministry if the government has a plan to provide special status to Bihar and other most backward states to promote economic growth and industrialisation.

In a written response, Minister of State for Finance Pankaj Chaudhary said "case for Special Category Status for Bihar is not made out".

"The Special Category Status for plan assistance was granted in the past by the National Development Council (NDC) to some States that were characterized by a number of features necessitating special consideration. These features included (i) hilly and difficult terrain, (ii) low population density and/or sizeable share of tribal population, (iii) strategic location along borders with neighbouring countries, (iv) economic and infrastructural backwardness and (v) non-viable nature of State finances," the reply stated. "Earlier, the request of Bihar for Special Category Status was considered by an Inter-Ministerial Group (IMG) which submitted its Report on 30th March, 2012. The IMG came to the finding that based on existing NDC criteria, the case for Special Category Status for Bihar is not made out," it added.

A special status ensures more central support to a backward state to expedite its growth. While the Constitution does not provide for a special status for any state, it was introduced on the recommendations of the Fifth Finance Commission in 1969. Among the states that have received a special status so far are Jammu and Kashmir (now a Union Territory), Noreastern states and hill states such as Himachal Pradesh and Uttarakhand.

A state with a special category status gets more funding support from the Central in the Union government's schemes and several concessions in taxes.

A special status for Bihar has been a longstanding demand of the JDU. With the BJP falling short of a majority in this election and tying up with JDU, TDP and other parties to cobble up the magic figure, the Nitish Kumar-led party was expected to push hard for its core demand. The JDU also raised this demand at an all-party meeting before the budget session.

JDU MP Sanjay Kumar Jha said the demand for a special state status for Bihar has been a priority for the JDU. "Bihar should get the status of a special state, this has been the demand of our party since the beginning. Chief Minister Nitish Kumar has held big rallies for this demand. If the government feels that there is a problem in doing this, then we have demanded a special package for Bihar," he said, according to a PTI report.

With the Centre making it clear that it has no plan to grant a special status, Bihar's main Opposition RJD has hit out at the JDU, which is ruling the state in alliance with BJP. "Nitish Kumar and JDU leaders must enjoy the fruits of power at the Centre and continue their drama politics on special status," the RJD said in a post on X.

A source in the government said that the Special Category Status issue was first addressed in the National Development Council meeting in 1969. "During this meeting, the D R Gadgil Committee introduced a formula to allocate Central Assistance for state plans in India. Prior to this, there was no specific formula for fund distribution to States, and grants were given on a scheme basis. The Gadgil Formula, approved by the NDC, prioritized special category States such as Assam, Jammu & Kashmir, and Nagaland, ensuring their needs were addressed first from the pool of Central assistance."

The Special Category status concept was introduced by the 5th Finance Commission in 1969 recognising historical disadvantages of certain regions, the source said.

"Until the 2014-2015 fiscal year, the 11 States with Special Category Status benefited from various advantages and incentives. However, following the dissolution of the Planning Commission and the formation of the NITI Aayog in 2014, the recommendations of the 14th Finance Commission were implemented, leading to the discontinuation of Gadgil Formula-based grants. Instead, the devolution from the divisible pool to all States was increased from 32% to 42%," the source added.

Currently, no additional States are being granted Special Category Status, as the Constitution does not provide for such categorisation, said the source in the government.

Bengaluru: The Congress government in Karnataka on Wednesday defended its move to reserve jobs in private sector for Kannadigas in the state, even as industry veterans objected to the proposed quota, calling it 'fascist,' and 'short-sighted.' The government also sought to reach out to the private sector, saying their interests will be protected.

The state cabinet on Monday cleared the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, making it compulsory for private firms to reserve jobs for Kannadigas in their establishments. It is likely to be tabled in the Assembly on Thursday.

"Any industry, factory or other establishments shall appoint fifty percent of local candidates in management categories and seventy percent in non-management categories," the bill read.

If the candidates do not possess secondary school certificate with Kannada as a language, they should then pass a Kannada proficiency test as specified by the 'Nodal Agency', it added.

The nodal agency will have powers to call for any records, information or documents in the possession of an employer or occupier or manager of an establishment for the purpose of verifying the report.

The Government may appoint an officer not below the rank of Assistant Labour Commissioner as the authorised officer regarding compliance of the provisions of the Act.

Any Employer or Occupier or Manager of an Establishment, who contravenes the provisions of this Act should be liable for a penalty between Rs 10,000 to Rs 25,000.

Hailing the bill, Karnataka Deputy Chief Minister D K Shivakumar said, "The Congress came to power in Karnataka to uphold the dignity of the Kannadigas--be it the issue of signboards of private establishments, the Kannada flag, Kannada language, culture, documents or specific percentage of reservation in jobs for Kannadigas."

Minister for Infrastructure Development, Medium and Heavy Industries M B Patil also backed the bill saying there is no doubt that Kannadigas should get jobs in Karnataka.

He, however, underlined that the interests of the industries will also be safeguarded.

"In private sector, certain ranks of posts will be reserved 100 percent for Kannadigas. The interests of industries will also be protected." In a statement issued by his office, the Minister was quoted as saying that he will discuss with Chief Minister Siddaramaiah, IT-BT, Law and Labour Ministers in the event of any confusion in the bill.

"The government will also work on the skill development of Kannadigas. We cannot miss the bright opportunities of manufacturing sector and industrial revolution," he said.

"This bill will be discussed with all concerned. There is no need to worry in this regard," Patil said.

The move, however, has not gone down well with industry leaders.

Well-known entrepreneur and former Chief Finance Officer of Infosys, TV Mohandas Pai dubbed the bill as "fascist."

"This bill should be junked. It is discriminatory, regressive and against the constitution @Jairam_Ramesh (Congress leader) is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of private sector? People have to take a language test?" Pai said on 'X'.

Pharma company Biocon Managing Director Kiran Mazumdar Shaw said, "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy."

ASSOCHAM, Karnataka co-chairman R K Misra said on 'X', "Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short sighted."

Karnataka's move is similar to a bill introduced by the Haryana government, mandating 75 per cent reservation in private sector jobs to the residents of the state. It was, however, struck down the Punjab and Haryana High Court on November 17, 2023.

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".