Issues with implementation of the ordinance

♤ May not pass the legal scrutiny- It is violative of Article 14 (Right to equality) and Art 16 (Right to equal opportunity). Moreover, Article 16 does not empower the state government but rather the Parliament to provide reservation in jobs on the basis of residence but that too is limited to public sector.

♤ Dangerous for unity of the country- Such moves could lead to a Pandora’s box where other

states start implementing such policies, which result in fractures in the unity of India.

♤ Concerns of the Industry- Although, most of the units employ locals only, however, there are certain sectors like chemical technology, textile and biotechnology, where it may be difficult to find locals for the jobs and the units are forced to search outside.

o It will likely facilitate corruption and create another barrier to ease of doing business.

o Difficult to attract investments- Such a decision may lead to relocation of industries elsewhere and also alienate the potential investors. Lack of investments could further drop the job creation.

o Plan may not impact micro or smaller units as they can still engage localites. However, medium and large- scale companies and MNCs like Auto industry which contributes more than 25% of the state GDP of Haryana will be adversely impacted.

o Since these industrial units cannot ‘import’ labourers from elsewhere; the burden of

imparting the requisite skills to, and of employing, locals will fall on the units.