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‘This will scare investors away’

india Updated: Nov 19, 2008 01:19 IST
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The Maharashtra Government on Tuesday said the decision to ensure jobs for the locals is largely aimed at blue-collar jobs or large-scale recruitments.

“We cannot ask the industries to reserve posts. Neither can we ask them to provide jobs in sectors like banking where recruitment is done through competitive process,”said Chief Minister Vilasrao Deshmukh.

The move is aimed at factories and large-scale employment sectors like the information technology, he added.

On Monday, the Maharashtra Government announced that it was setting up a mechanism to ensure that 50 per cent supervisory jobs and 80 per cent non-supervisory jobs are given to local candidates. The industries department is insisting that the directive would be mandatory for all industries.

The corporate sector is not amused with the order. “An investor will employ only those who he thinks are capable of giving him the desired results. If such laws are passed a potential investor will think of moving to a place which do not have such stringent rules on employment," said Indian Merchants' Chamber President MC Chaini.

Deshmukh maintained: “What the government says is if we have talent available locally, the industry should hire them. We are ready to assist the industries in recruitment. A survey will be done for the purpose.”

State industries minister Ashok Chavan on Tuesday indicated that the government was unlikely to take any stern action against industries that do not follow the directives. Asked if it was compulsory, he said, “It is better that companies voluntarily accept it and there is no reason why they should not do so. If there is any problem, they can approach us. If, for example, a particular kind of labour is not available in the state, the government can impart training.”

Significantly, the move will be more binding on the factories that get sops from the government. Several industrial units have been given land at subsidized rates and they also enjoy tax benefits.