Gujarat Chief Minister Vijay Rupani promised on Tuesday to bring in a law to for manufacturing and service sector entrepreneurs to hire 80% of their workforce are Gujaratis. “The proposed law will also make it compulsory for industries to recruit 25 per cent of the required manpower from the area where they set up a new unit,” he added.
“We are bringing such a law. This will provide benefits to the local residents, including local engineers, computer-literates etc,” Rupani said while speaking at a function organised to distribute contract letters to over 8,500 youths under the ‘Mukhyamantri Apprenticeship Yojna.’
The state government officials said the government is trying to fine-tune the definition of ‘domicile’ in the state.
Vipul Mitra, additional chief secretary of the labour and employment department said, “As the CM said, an ordinance is expected shortly. The objective of the law will be to provide maximum employment to locals at existing and upcoming industrial units. The government has decided to enact a law as the existing policy is more of a guideline. The new law will empower the government to take action against industrial units violating these norms or block financial and other incentives as there is no point of incentives if locals do not get jobs.”
According to a government resolution passed in March 1995, locals are defined as people living in the state for the last 15 years. The criterion has now been reduced to seven years.
As per the state’s current policy, industrial units taking various incentives or benefits from the government to set up or run their business have to hire 85 per cent of their workforce from the local population.