Uttar Pradesh MSMEs finding it difficult to operate amid Corona curfew
UP MSMES representative body said it may have to shut down units for the time being.
A body representing Micro, Small and Medium Enterprises (MSMEs) says restrictions on transport and shortage of manpower has made continuation of operations difficult during the Covid-19 lockdown in Uttar Pradesh. They said they may be forced to consider shutting down shops till the situation normalises.
Indian Industries Association (IIA) has pointed out that though the state government has exempted industrial activity from the ongoing corona curfew, production and maintenance work has been affected in almost all units
“As transport services are off the roads, industries are finding it difficult to procure raw material and send finished products to stockists,” says Manmohan Agarwal, senior vice president, IIA.
Agarwal adds that the state has not accepted some of their demands making resolution of the problem difficult.
“We have requested the state government to exempt transport companies from the purview of corona curfew. Unless offices of transport companies are allowed to open, there will be no movement of trucks on roads. In such a scenario, industries cannot be run,” Agarwal said.
He adds that if the situation continues like this, MSMES will have to shut down for the time being.
Another association member pointed out that MSME units in Noida and Meerut were working at minimum capacity due the disrupted supply chain and low work force.
“...Workers have left for their homes, fearing the pandemic,” said Rajiv Bansal, national secretary, IIA.
According to the association, Uttar Pradesh has around 30 lakh MSMEs comprising 90% micro units and 8% small units. The body says that while 180 out of the 240 units at Noida Special Economic Zone (NSEZ) are currently operational, the manpower has shrunk significantly due migrants returning to their hometowns.
Bansal says only around 5,000 workers are currently available in Noida against 50,000 capacity and since all shops are closed except for those related with essential items, it is also hard to get maintenance work done at industrial units.
“We have also requested the government to allow all essential shops related with industries to open at least for two days in a week so that maintenance work may be carried out, if required,” said Bansal.
Uttar Pradesh government has imposed curfew like restrictions till 7 am on May 24 to contain the spread of coronavirus in the state.