Industrialists said that over 20% of their employees have been reporting late or not turning up for work as they wait in lines to exchange scrapped notes or withdraw money from banks and ATMs. Production in city-based factories has been hit badly.
The government had removed ₹500 and ₹1,000 notes from circulation on November 8, due to which people have been queueing up at banks to exchange these notes and also withdraw money regularly due to the cap.
There are over 8,000 enterprises in the city, which employ more than 5 lakh workers. Factory managements said they are finding it hard to cope with the situation.
Harish Joneja, the secretary of Noida Entrepreneurs Association, said, “Our production has been badly hit in the last 20 days. We are unable to meet our commitments of delivery. Initially, 30%-35% of the workers were absent from work. This was the case with every small, medium and big factory.”
“Every worker has the same problem. They have no option but to stand in queues at ATMs and banks, despite repeated failed attempts to withdraw cash or exchange scrapped bank notes. Some of them would come in late while others would not turn up at all. This continued for the last two weeks as most of them had to run from one ATM to the other,” Joneja said. He runs a factory, with a workforce of 100, that is involved in manufacturing moulding compounds.
Ram Shankar Prasad, 38, who works at J&S Wirelinks Private Limited in Sector 59 of Noida, said, “I reached office after 12 noon (the reporting time) for the last few days and I was also absent for two days in the last twenty days, to exchange scrapped notes.”
Surender Singh, who works at a factory in Sector 8, said, “I had planned to return from Bihar on November 11, but could not as I had to arrange money for my family members in my village as well as in Noida. I informed my employer and extended my leave by a week.”
NEA members urged the government to recalibrate ATMs to dispense the new ₹500 notes, and stock them with other notes to the maximum capacity.
“Even almost 20 days after the demonetisation, 90% of the ATMs are mostly out of cash or remain out of order. This situation should be addressed immediately,” Vipin Malhan, president of NEA, said.