Thiruvananthapuram:
Kerala Chief Minister Oommen Chandy today said India hopes to amicably resolve with Saudi Arabia the situation arising out of Riyadh's new labour policy that could potentially affect lakhs of Indians working there.
"We expect to resolve the matter amicably as India has friendly trade relations with Saudi Arabia," Mr Chandy said, adding that there was no "panic situation".
Saudi Arabia's labour policy titled 'Nitaqat' is part of its efforts to give more jobs to locals. The decision has triggered apprehension in Kerala, from where lakhs have gone to the country to work.
Kerala has taken up the issue with Prime Minister Manmohan Singh and External Affairs Minister Salman Khurshid. It has approached central ministers from Kerala, seeking the Centre's intervention so that Saudi Arabia takes a liberal view on the issue.
Mr Chandy said though the policy came into force in July 2009, the Saudi Arabia government decided to strictly implement it now. "Under the policy, 10 per cent of the total jobs should be for locals," he said.
He said efforts were underway to prevent an exodus of expatriates from Saudi Arabia, but the government would work out a rehabilitation package for those returning, including concessional air tickets.
As per 2011 estimates, around 5.7 lakh people from Kerala work in Saudi Arabia.