The Karnataka cabinet on Thursday approved amendments to relevant rules for giving primacy to Kannadigas in jobs under Group C and D category (blue colour) in the private sector.
The cabinet also cleared textile and garment policy 2019-2024 with an investment outlay of Rs 10,000 crore and aiming to generate employment to 5,00,000 people.
"We have approved amendments to the Karnataka Industrial Employment (Standing Orders), Rules 1961, to give priority to Kannadigas in C and D category of jobs in the industries in the state," Law and Parliamentary Affairs Minister J C Madhuswamy said.
Briefing reporters here on the cabinet meet, he said under the amended rules, five per cent jobs in the private sector would be reserved for the disabled.
"As we cannot mandate things, we have said, preference should be given to Kannadigas. It will be (legally) questionable otherwise," he added.
Noting that the proposal for giving preference to Kannadigas in private jobs was made by the then Congress government in 2016, he said "We have given approval for it today."
However, the Information Technology and Biotechnology companies would be exempted from the amended rules, sources said.
On other cabinet deliberations, Madhuswamy said it was decided not to export iron ore from Karnataka. Instead, value added products like pallets should be exported to support small industries.
Pointing out that Iron ore production in Karnataka was about 35 million tonne per year, he said "...there is 6 million tonne remaining (in the inventory) and there was discussion on how to dispose it. So we have decided to convert it into pallets," the Minister said adding it was in line with the Centre's stand.
As many as 17 industries have come forward to convert the ore into pallets. It was planned to revive the Kudremukh unit which had not been functioning.
On the new textile and garment policy, Madhuswamy said four zones had been created to give scope for the textile and garment industry and provide incentives.
With an aim to boost the local economy and to create a holistic textile and apparel ecosystem in the state, some sectors like spinning, weaving, integrated units, processing and technical textiles- have been identified as thrust areas for investors for intervention in the new policy.
Policy incentives offered for textiles and garments included credit linked capital subsidy for MSME enterprises and large enterprises, interest subsidy (5 per cent per annum), subsidies on power bill, ESI, EPF and wage, stamp duty exemption and concessional registration charges.
To facilitate and to promote mega projects, the policy aimed at considering case to case package of incentives or concessions for deserving mega enterprises over and above the concession or incentive prescribed.
The overall budget requirement for implementation of the policy is expected to be about Rs 2,282.86 crore spread over the next 8-9 years, it said, adding that during the policy period (2019-2014), the budget requirement would be around Rs 1,582.17 crore.
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