The Karnataka Cabinet has approved a 4% reservation for Muslim contractors in government tenders up to ₹1 crore under the Karnataka Transparency in Public Procurement (KTPP) Act, 1999. This move aligns with the existing reservations for SC, ST, and backward communities. Additionally, the tender limit for SC/ST contractors has been raised to ₹2 crore.

Chief Minister Siddaramaiah defended the decision, stating it aims to uplift marginalized communities. However, BJP criticized the move, calling it "appeasement politics" and against the Constitution. State BJP President B.Y. Vijayendra argued that the government is ignoring other marginalized groups and prioritizing Muslim contractors for political gains.