"Infosys Offers ₹50,000 Annual Incentive to Encourage Relocation to Hubballi Campus"
Infosys has acquired land for its Hubballi campus at a subsidized rate of ₹35 lakh per acre, significantly lower than the market value of ₹1.5 crore per acre.
According to The News Minute, Infosys has launched incentives to encourage employees to move to its Hubballi development center, responding to criticism over the lack of local job creation near the facility.
According to the article, this development follows criticism from Arvind Bellad, BJP MLA of the Hubballi-Dharwad West constituency. Bellad accused Infosys of failing to create local job opportunities around the development center and called on the state government to reclaim the 58-acre land where the center is situated.
According to the article, in February, Bellad highlighted in the Karnataka Assembly that Infosys had acquired the land at a discounted rate of ₹35 lakh per acre, well below its market value of ₹1.5 crore. He also noted that many farmers in his constituency had given up their lands in the hope that Infosys would generate employment opportunities locally.
Reports indicate that Infosys intends to offer a relocation incentive of ₹25,000 to its employees in band 3 and below upon their initial move to Hubballi. Additionally, these employees will receive an additional ₹25,000 every six months for a period of two years. Furthermore, employees relocating to Hubballi are slated to receive ₹1.25 lakh at the conclusion of 24 months.
According to the article, band 4 employees will receive ₹2.5 lakh, band 5 employees ₹5 lakh, band 6 employees ₹6 lakh, and band 7 employees ₹8 lakh at the end of 24 months, in addition to the initial relocation incentive.
In February, amidst similar allegations raised in the Assembly against other large firms in the state, Karnataka's Minister for Commerce and Industries, MB Patil, pointed out that this practice contravened the Industrial Policy 2020-25. The policy mandates that companies receiving government incentives must ensure 100% employment for Group D positions and achieve an overall 70% employment rate for Kannadigas.
According to the report, he warned that the state government would withdraw incentives from companies that fail to generate job opportunities for local residents.
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