The Karnataka Cabinet has gives its approval to the new Karnataka Employment Policy, 2022-25, which lays down guidelines that require investors to hire more locals while they work on the expansion of their units or on establishing new industries in Karnataka.
The objective is to reduce unemployment in the State and ensure that there are enough opportunities available for the locals.
If industries that fall under the medium-scale category, that is, where a minimum of 20 people are employed, agree to create at least seven more jobs, then they will be allowed to invest up to Rs 10 crore more.
In case an industry plans to increase working capital by Rs 50 crore, it has to create at least 30 to 50 jobs. In case an investment of Rs 100 crore is planned, the industry will have to create at least 35 jobs. The number of additional jobs will depend on the category that the industry falls into, and the size of investment.
Until now, ultra mega units were supposed to create employment opportunities for at least 400 people. Now, as per the new policy, they will need to create 510 jobs.
While earlier large-scale industries were required to create 50 additional jobs, now they are required to create at least 60, while the number has increased from 10-15, to 20 for medium-scale industries.
Simply put, all enterprises wishing to go for extra investment will have to generate extra employment, as per the criteria laid down by the policy.