Reconsider Haryana’s rule of 75% reservation for locals in pvt sector: ACMA

The Automotive Component Manufacturers Association of India (ACMA) believes that such a move would not only adversely impact the ‘ease of doing business’ in the state, but also be detrimental to Haryana’s image of an industry friendly state and in attracting future investments.
Reconsider Haryana’s rule of 75% reservation for locals in pvt sector: ACMA
New Delhi 

Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component manufacturing industry, has requested the Haryana State Government to reconsider reservation of employment for locals in private enterprises. The Haryana assembly, on November 5, 2020, had passed the ‘Haryana State Employment of Local Candidates Bill’ that mandates 75 percent reservation of factory and other blue-collar jobs in the private sector for locals.

Stressing on the need for reconsidering such a provision, Deepak Jain, President, ACMA, said, “The Indian auto and auto component industry is a global one, our production not only caters to the domestic demand, but also to international markets. The Indian component industry today exports more twenty-five percent of its production, with US and Europe being our leading markets. Our industry requires skilled workforce to produce high quality products that are globally competitive. Hiring in our sector is done on the basis of talent and skills needed by the industry rather than on domicile of the candidates.”

“Such a move would not only adversely impact the ‘ease of doing business’ in the state, but also be detrimental to Haryana’s image of an industry friendly state and in attracting future investments.”, added Jain in the ACMA press release. Its membership of over 850 manufacturers contributes more than 90 per cent of the auto component industry’s turnover in the organised sector. The turnover of the auto component industry stood at Rs 3.49 trillion for the period April 2019 to March 2020.

The OEM manufacturers in Haryana account for the country’s 80 per cent of excavators, 52 per cent of cranes, 50 per cent of cars and 33 per cent of two-wheelers in India. The Gurugram-Manesar-Bawal has been termed as an auto hub by the Centre.

The reservation law has been passed at a time when the state government is trying to attract investment in auto sector to boost generation of jobs. The state is working on the draft Estate Management Policy 2020 to offer a slew of incentives for the automotive sector. As per the draft, the state government will incentivise manufacturing of electric vehicles and green automotive technologies.

While the Haryana government wants the auto industry to invest in other areas and generate employment, the law seeking 75 per cent quota for local youths in private jobs may prove to be detrimental to industrial development.
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