-SATISH  HANDA

Hisar known as ‘City of Steel’ in Haryana state having nearly 150 small and medium steel units holding about 20% share in steel business in the country about two decades ago manufacture steel tubes and other steel products. Ajay Batra,  General Secretary Hisar Udyog Sangh said, the manufacturing, sale and profit margins of steel industry has started  going down rapidly since after past about 15 years and the industry has been worst affected due to COVID-19 in past over a year as a result steel production in manufacturing units have now dropped to nearly 20% .at present.

Batra said, hit by the recession in domestic market due to COVID-19 this industry in the state has performed poorly in past over a year due to epidemic outbreak and repeated lock down declared by the government The entrepreneurs expressed worry over constant decline in production as well as sale since past many years since the steel is being dumped into the country from CIS countries and Korea. He said, as result of demand recession and repeated lock down steel industry in the town facing financial burden when producing hardly 15-20% of their production capacity.

Chairman of New Industrial Welfare Association Rakesh Bansal said, introduction of  PVC tubes had badly affected the sale of steel tubes industry as consumers preferred low weight PVC tube as compared to steel tubes and snatched more than 50% share from steel tubes. Demanding special packages especially to MSME units for their survival as well as concession in electricity tariff from the government Bansal said that since past over a year industry in the town facing severe economic crisis due to salaries to permanent staff, meet day to day overhead expenses and instalments payment against bank loans when industry is doing hardly 15-20% of their production capacity. He said, most of small scale manufacturers have become sick or already closed down their shutters.

As seen, many big units has cut down their production between 60-75% unable to get raw material or due to shortage of labour since most of the migrant labourers from U.P, Bihar and West Bengal had left for their native places when lock down was declared by the government in 2020 and never returned. The entrepreneurs of Hisar steel industry told that tough competition has taken the toll on the industry facing tough competition with  local manufacturers as well as manufacturers from Punjab having neck to neck price war as well as slump in market forcing local industry to utilise less than 25% of their production capacity. They said, industry in the town is facing shortage of labour since most of the skilled workers from U.P, Bihar and West Bengal left for their native places when lock down was declared in 2020 during first wave of COVID-19 not returned on work as such most of the units are working in single shift and some of them either turned sick or in the state of collapse or facing severe financial crisis. Information reveals, some of steel goods manufacturers has discontinued manufacturing because they are not sure when situation will be normal. There are nearly 35 big or mediem steel industrial units involved in production at Hisar, whereas others are small scale manufacturing units most of them are lying closed.