Buckling under political pressure, the Uttaranchal government has approved its employment generation scheme, making it mandatory for industries to provide 70 per cent reservation to the local youth in non-technical posts, a move decried by the industrial chambers.
During a four-hour meeting held under the chairmanship of Chief Minister ND Tiwari yesterday, the Cabinet also gave the existing industries six months to fill up the vacancies.
For this purpose, the cabinet has also cleared a proposal to set up a state council with the chief minister as its chairman, which would work in association with industries for filling up the vacancies.
The move came as a surprise to most of the industrial chambers, The Indian Industries of Association (IIA), Uttaranchal, has stated that such a measure would hamper the investment scene in the new state.
"This is very surprising. The decision has come at a time when most of the industries are voluntarily providing more than 80 per cent jobs to the locals," said IIA President Pankaj Gupta.
Stating that the new measure would stop new investments in the state, Gupta said the government was unnecessarily creating "psychological pressure" on industry.
In this regard, Gupta also said it was not clear whether those industries which were not taking the benefit of the tax holiday scheme would have to comply with the measure.
Yogesh Jindal, president of the Kumaon Garhwal Chamber of Commerce and Industry, blasted the decision stating that political decisions like this one would definitely affect the economic condition of the state.
Describing the decision as a "surprising", Jindal said the measure came at a time when Uttaranchal was fast moving towards the economic path of recovery.
Similarly, CII State Council Chairman Hemant Arora said this decision would hamper industrial growth in the state. "We should have avoided decisions which are politically motivated," said Arora.
The decision came following considerable pressure exerted by Uttaranchal Congress President Harish Rawat, who threatened to stage a sit-in strike demanding 75 per cent reservation in industries for the local youth.