Earlier in the day, the National Association of Software and Service Companies (NASSCOM) had expressed concerns over the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024, urging the state government to withdraw it.

NASSCOM observed that such restrictions mandated by the bill could "force companies to relocate as local skilled talent becomes scarce".

"The bill's provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state," the IT industry body said in a release.

Lokesh responded to NASSCOM's letter on X and said, "We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data centre cluster at Vizag."

He said that the Andhra Pradesh government, without any restrictions, will offer them the "best-in-class facilities, uninterrupted power, infrastructure and the most suitable skilled talent for your IT enterprise".

"Andhra Pradesh is ready to welcome you. Please get in touch!" the Minister said in his X post.

Karnataka IT Minister Priyank Kharge responded to Lokesh, saying that the state government's goal is to "develop a global workforce using local talent, while also encouraging global investments and creating employment opportunities".

"By the way, wouldn’t you also like to ensure that every company invested in Andhra Pradesh employs deserving, trained and skilled individuals from Andhra Pradesh?" Kharge asked Lokesh.

The Karnataka Minister also reassured NASSCOM that the government will not do withstand any legal scrutiny, adding that this will always be "your Government and as always we are just a call away".

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was cleared by the state Cabinet on Monday and was expected to be tabled in the Assembly on Thursday.

However, following massive backlash from several private firms, the bill has been put on hold.

The bill, approved by the Siddaramaiah-led government, provides 50 per cent reservation for local candidates in management categories and 70 per cent in non-management categories in any industry, factory or other establishments.

The bill makes it mandatory for private firms to reserve jobs for Kannadigas.