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Andhra Pradesh passes Bill for 75% jobs to locals in factories

Andhra Pradesh Legislative Assembly passed Andhra Pradesh Employment of Local Candidates in Industries and Factories Bill, 2019. The bill mandates reserved employment of at least 75% state candidates (locals) in all private industrial units and factories, irrespective of whether companies get financial or any other help from government. With this bill Andhra Pradesh became 1st state to reserve jobs for locals in respective units.

Key Features of Bill

  • The 75% reservation to local is provided in private jobs across all categories such as- factories, industrial units, joint ventures (JVs) as well as projects taken up under Public-Private Partnership (PPP) mode.
  • If locals with necessary skills are not available, then companies must train them in association with state government and hire them.
  • Existing industries, factories, joint ventures and PPP projects will have to comply with these provisions within a period of 3 years from date of commencement of Act. Companies will have to provide quarterly reports about local appointments to a nodal agency.
  • Only those units that are listed in 1st schedule of Factories Act (mostly hazardous industries like petroleum, pharmaceuticals, coal, fertilisers and cement, among others) will be exempted from the new Act, after government approval.


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