A couple of months after enacting the Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019, the Y S Jagan Mohan Reddy government has finally come up with rules for its implementation, bringing some clarity to key aspects such as the definition of a local. These rules are more or less in line with what the government has already outlined and may not do much to allay apprehensions expressed by industrialists and investors, both foreign and domestic.
Some of them had hoped that the quota could be limited to non-supervisory roles, but it is now clear that the Act brings within its purview all jobs across the board. There are exemptions, for sure, and they are the silver lining.There is a grain of truth in the government’s argument that private industries are simply walking away with incentives by making empty promises of employment generation. However, a 75% quota is no solution to the problem. More regulations, possible corruption stemming from them coupled with poor infrastructure and non-availability of skilled workforce will more likely deter investors from viewing Andhra Pradesh as a favourable destination.
More so, when the economy is slowing down and industries, big and small, are worried of an impending recession. The quota may also backfire on Andhras themselves. In poll-bound Maharashtra, the Congress and NCP have promised 80% quota for locals. Goa and Madhya Pradesh are not far behind. Given that more people migrate from, rather than to, Andhra for jobs, similar legislations in other states would have an adverse impact on them.
From a national perspective, the ripple effect of AP’s jobs quota will only lead to regionalism, which we can do without.Far more important is that the Act flies in the face of the Constitution. Legal experts opine it is against Articles 19, 16, 15 and 14—all of which give citizens right to equality and freedom of movement without discrimination based on birthplace. Even if it stands legal scrutiny, it won’t help as it is a cure worse than the disease.
