Not Only Infosys But Many Companies Should Answer!

There is an uproar in Karnataka regarding the Infosys campus, which has acquired many acres of land to establish its company but is not providing jobs to the locals as per the agreement and understanding.

“If any company has acquired land at a subsidized rate, they have received a government incentive. In such cases, the company should offer jobs to those who have lost their lands, based on the educational qualifications of the family members. If the company fails to do so, we will withdraw the incentives and may also reclaim the land granted,” stated Karnataka’s industries minister MB Patil.

This concern was raised by BJP's MLA Arvind Bellad.

“We will investigate all such cases to determine what legal action can be taken. Instead of merely imposing penalties, withdrawing the benefits would be a stricter measure. If the company has not provided jobs after receiving the incentive, we will issue notices promptly and proceed with further action,” Patil also added.

He further concluded by stating, "Under the Industrial Policy 2020-25, companies receiving incentives from the government must offer 100% Group D jobs and a total of 70% jobs to Kannadigas. Whether it's Infosys or any other company, if people who lost land are not given jobs based on their educational qualifications, we reserve the right to withdraw incentives. We can also take stringent action to reclaim the land,” added the minister.

This issue is not unique to Infosys in Karnataka but is prevalent among almost all companies that have acquired land from the government at subsidized rates. Many of these lands are either being used for real estate purposes or are simply lying idle with little action taken.

“In the first place, when a company like Infosys has significant profits, assets, and value running into lakhs of crores, why would it need free or subsidized land to establish its campus? If it were for startups, it would be reasonable. However, for large corporations, why should such subsidies be provided? There should be a Public Interest Litigation (PIL) on this subject,” expressed a startup company owner.

“The big companies have numerous options across India, and they choose states that offer more attractive incentives. Moreover, they feel that the state is granting them land for real estate speculation around the area rather than primarily for local employment. It's an open secret. Despite clauses in agreements requiring employment for locals, they are often breached, and no government has ever pressured any company on this,” the startup company owner opined.

Considering all this, it is apparent that there should be stringent laws mandating employment for locals without any hesitation. Only then would allotting land to companies be meaningful for the common man.

Even international giants like KIA Motors have obtained subsidized land for their operations in Anantapur in Andhra Pradesh. Additionally, no taxes are levied on its business. If this is the kind of concession we grant to foreign companies in the name of development without actually fostering growth, then what is the use?

The central government should enact legislation to ensure that every point mentioned in the agreement is implemented without hesitation, and thorough scrutiny regarding the effective implementation of agreed points should also be conducted. Local employment should be the foremost criterion, while taxes on businesses should not be overlooked. Real estate business around the area should be considered a bonus, and that alone should not be the criterion for allocating land to big companies.