The Andhra Pradesh government on Tuesday reserved 75% jobs in private industrial units and factories for residents of the state, The Times of India reported. On Monday, the Andhra Pradesh Assembly had passed the Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019.

The new rules will apply to joint ventures as well as projects under public-private partnerships, the daily said. The law applies to existing units as well as industrial units which will be set up in the state in the future.

The new law says that if residents with the necessary skills are not available, the companies will have to train them in cooperation with the state government. Only the industries listed in the first schedule of the Factories Act – mostly producing hazardous goods like petroleum, pharmaceuticals, coal, fertilisers and cement – have been excluded from the ambit of the Act.

Companies will have to comply with the new Act within three years of beginning of its operations. They will also have to file quarterly reports about local appointments with a nodal agency.

“The Act is both good and bad,” Vijay Naidu Galla, president and chief executive officer of Tirupati-based Amara Raja Industrial Group, told The Times of India. “Good because it gives an indication of the government’s policy to promote local hiring in the state. But the government has to ramp up its skill development centres in the state to train locals to be ready to be hired in manufacturing and IT companies.”