Why in news?

The new Karnataka Employment Policy, 2022-25, has mandated investors to increase the number of jobs for locals while expanding their industrial units or setting up new industries in the State.

Highlights:

Availability of workforce

• The vision is to ensure ample availability of the relevant workforce across Karnataka and provide job opportunities to a larger base of the State’s workforce to reduce unemployment in Karnataka.
• The increase in the number of jobs would depended on the category of the industry and investment. If an industry is categorised as medium-scale, where the minimum employment is 20 and it agrees to create seven more jobs, then the policy will allow for an additional investment of up to ₹10 crore,.
• Similarly, if an industry has proposed to increase working capital by ₹50 crore, it has to generate a minimum of 30-50 jobs. If the investment is ₹100 crore, a minimum of 35 additional jobs should be created, the Minister said.

Minimum job guarantee

• The government has increased the minimum job generation requirement for industries.
• Ultra mega units, which were earlier required to create a minimum of 400 jobs, will now have to generate 510. T
• The minimum job requirement of large-scale industries has increased from 50 to 60 and that of medium-scale industries from 10-15 to 20.

• If the entrepreneurs have to invest additionally, they will have to create extra jobs based on the criteria explained in the policy.