75% reservation for locals in private sector: Ggm industries mull shifting base to Noida

Gurugram: With the Haryana government having approved the law for making it mandatory for private companies to reserve 75 per cent jobs for the local population, industries in Gurugram and Manesar — the cities that drove the state's corporatisation and industrialisation — are looking to move to NCR cities of Noida and Greater Noida.

Dependent on the skills of several workers from outside the state, several garment export units, as well as auto-ancillary units, have now begun discussions with authorities in Noida and Greater Noida for setting up their bases.

Several owners from garment export units highlighted how they are dependent upon skilled workers most of whom come from Chhattisgarh, Madhya Pradesh, Uttar Pradesh and Bihar for employment. With new law setting in, owners have highlighted the problems of having to continue their operation without being able to bring in the required number of skilled workers.

In addition to Noida and Greater Noida, the companies are also considering areas in Rajasthan bordering the Capital.

The same is the case with several small auto ancillary units in Gurugram that have also now begun to explore options of moving out of the state. Several big and small firms that are based in Gurugram have already expressed their disappointment in the law in its present form and have not shied away from stating openly that this law is going to reduce investments in Gurugram in the coming years.

"The government has taken an easy route of creating reservation in the private sector which has done well and created jobs for the citizens even without the government's help in many cases. Rather than providing infrastructure and creating laws that allow more private sector organisations to come in and invest in Gurugram, now there is a fear that if this law remains, it will only result in more companies moving out of Gurugram and moving to newer places like Noida and Greater Noida where infrastructure and labour laws are better than Gurugram," said Manasi Kaushik.

Most of the private firms in Gurugram remain unhappy despite the Haryana government announcing that there are going to be several new commercial and industrial townships that are going to be set up in Gurugram to balance the fallout from the reservation law.

"The government agencies in Gurugram are constantly working with private firms to make sure that they do not face any challenge in conducting their businesses over here. Haryana is not new in making reservations and there are several states that have done this earlier," said a senior official from Haryana government.