-SATISH HANDA
Talking to The Financial World, industry owners of ‘Science City’ Ambala raised a question if packages assured by Union Finance Minister Nirmala Sitaraman recently would be implemented at ground level since corona virus epidemic outbreak has adversely affected trade and industry in the state as such more than thousand micro and small industry units manufacturing scientific instruments since past over 120 years in the town as well in the state has been turned as micro and tiny units due to 52 days lock down period. Sanjay Gupta president of Ambala Scientific Instruments Association (ASIMA) raised a question if industry would be able to utilize offered benefits announced by the government to avail collectoral security free loans from the banks since no bank will release loan amount without securityand small and micro industrial units will be deprived of benefits and announcement would prove merely a lolly pup for tiny and micro industry.
Rajiv Aggarwal former president of Scientific Apparatus Manufacturers Association (SAMA) said that it is tough time for Ambala scientific equipment industry since there was no sale since last more than two months as such over 70% units have become cashless unable to pay rents of their premises, salaries to workers and meet day to day expenses and large number of micro units have have been turned as tiny manufacturing units. Aggarwal said, entrepreneurs in the town have talent but there is no technical support by the government. He said, Ambala manufacturers are in a position manufacture thermal screener with technical support presently being imported from China and Taiwan and sold at the price nearly Rs 3000 each likely to be manufactured at the price Rs 1000 each.
According to Rajbir Choudhary president of Saha Industrial Growth Centre near Ambala Cantt, government has decided to extend financial help to collapsing industry by arranging loans from banks and it would be difficult to refund loan amount within four years along with amount of interest since government is financing only to losses already suffered by the industry due to lock down. He suggested, in case government wants to provide relief to industry should waive off or reduce GST. Rajbir predicted severe shortage of labour by industry in future since lakhs of skilled as well unskilled migrant labourers from U.P, Bihar, M.P and Uttarakhand has already left for their native states and government is still making arrangement for their shifting back to their native places at government expenses and nearly 50% of them are not likely to return and settle in their native states raising a question mark how industry will be able to function without skilled as well as unskilled labourers.
Information reveals, Micro, Small and Medium Enterprises (MSME) hold 45% shre in manufacturing, 40% share in exports and 30% share in GDP. Indian Banks Association had made a proposal for credit flow for MSME last month and banks expressed encouragement over government’s decision to provide hundred percent creadir guarantee on loans to MSME. Information also reveals that the banks are already worried due to Rs 10 lakh crore loans disbursed by them and according to Trans Union Cibil Report there are already bank loans of value worth Rs 2.2 lakh crore to MSME likely to become NPA.
According to industry entrepreneurs, although government has given permission to start production, but there neither orders with them nor availability of proper transport service so far. Shortage of raw material and labour already left for their native towns are another major problems faced by the industry. They were of view that with the opening of big industrial houses in the state like Jindal Steel Ltd at Hisar, Asian Paints, Asian Automotives, Aero Fasteners, Lotto India, Bosard, Micron Group of India at Rohtak where nearly 700 manufacturrs of nut-bolts in which nearly 27000 workers are employed have been permitted to start work the infrastructure in the area would arrive on the track to some extent although these organization are not having export orders in hand.
Information reveals, nearly 400 small and big industrial units at Karnal including Liberty Shoes, Oswal, Hindustan Pumps, Gee Laboratories, Anil Pumps an Nitin Pharma having strength of over 25000 workers has commenced production. Similarly, there are nearly 2000 industrial units involved in manufacture of textile goods, yarn, power loom, dyeing units and packing material at Panipat in which more than 23000 workers are employed has started production with limited number of workers started getting orders from United States and Britain. There are nearly 1500 MSME units having a strength of about 70000 workers at Bahadurgarh known as hub for footwears most of them opened their shutters after having permission from state government to start production but according to the entrepreneurs nearly 70% workers has not returned so far.
