Punjab’s stricter norms make industries uncertain

The stricter government guidelines, coupled with supply chain disruptions, retail still not being open and the prevailing business environment, have left a majority of them in doubt about restarting their production, according to industry leaders in different parts of the state

Chandigarh With the state government making norms for allowing industrial activities from April 20 more stringent amid the covid-19 crisis, most industries in Punjab are unsure about resuming operations.

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The stricter government guidelines, coupled with supply chain disruptions, retail still not being open and the prevailing business environment, have left a majority of them in doubt about restarting their production, according to industry leaders in different parts of the state.

The Centre had announced the relaxations four days ago. The state’s home department, which imposed additional conditions on Saturday for permitting industrial activities outside the containment zones, has made it mandatory for all categories of industries and industrial establishments employing 10 or more persons to make boarding and lodging arrangements on their factory premises for workers, or provide transport.

The Union ministry of home affairs (MHA) had, in its guidelines issued on April 15, imposed this condition only on manufacturing and other industrial establishments in Special Economic Zones (SEZs) and Export Oriented Units (EoUs), industrial estates and industrial townships.

Additional chief secretary, industries, Vini Mahajan, said the government is being cautious to make sure the situation does not get out of hand. “We want to see industries restart operations, but have to focus on containing covid-19 spread at the same time. If necessary, some recalibration can be done,” she said.

CHALLENGING SITUATION, TOUGH GUIDELINES

Raman Batta, president, Bathinda Chamber of Commerce and Industries, said district authorities are not allowing industries to transport workers and asking them to be accommodated within factory premises. “How many medium-scale factories have the space and facilities for boarding and lodging 100-150 workers? In this situation, only 10-12% of units will resume production,” he said.

Badish Jindal, president of Federation of Punjab Small Industries Association (FASII), and Upkar Singh Ahuja, chairman of Chamber of Industrial and Commercial Undertaking (CICU), said strict conditions, such as accommodating labour within the factory premises and holding the owner responsible if any worker contracts the infection, have also made many owners reluctant. “If authorities want industry to work, these guidelines will have to be changed,” Ahuja said.

Of 2.52 lakh registered industrial units, roughly 2,200 – a tad less than 1% - have been running their operations after the state government, on March 29, asked industrial units to start operations with conditions related to boarding and lodging of labour, to prevent the exodus of migrant workers. Things have not been smooth for them.

Ashok Sethi, director, Punjab Rice Millers and Exporters Association, said rice shellers started operations about 10 days ago at 20% capacity and faced many challenges, including operational difficulties, supply chain issues, cancellation of orders and payments. “We are only doing packing right now, but still it is tough. If I can achieve 50% of my production target this year, it will be an achievement,” said Sethi who is a member of the 20-member task force set up by the state government on covid-19.

OFFICIALS HEDGE BETS ON RESPONSE

Initially, state government officials expected 40% industrial units to resume operations from Monday onwards, but have scaled down expectations after the state home department’s order on consolidated guidelines with additional riders. “Our expectations were in line with the guidance given by the Centre, but the state guidelines were issued on Saturday. We will have to wait until Monday to see how many industrial units resume operations. Also, our hotspots and containment zones are mostly in industrial towns,” said industries director C Sibin, refusing to hazard a guess on the response.

TWO-THIRDS OF COVID-19 CASES

FROM INDUSTRIAL DISTRICTS

SAS Nagar (Mohali), Jalandhar, Patiala, Ludhiana, and Amritsar districts, where most of the micro, small and medium enterprises (MSMEs) are located, account for two-thirds (66%) of 234 Covid-19 cases in the state to date.

In Ludhiana, 650 of 95,000-odd units have taken permission in the past two weeks to operate. “Most of those granted permission are running their operations, but not many fresh applications for permission have been received,” a district official said.

Of 12,000-odd units (mostly MSMEs) in Mohali, 65 are operational. HS Pannu, general manager, district industries centre (DIC), said he had received 10-12 queries in the past 24 hours. Mohali has the maximum number of 61 positive cases in the state.

Strap/Blurb

WAIT AND WATCH

Initially, even govt officials expected 40% industrial units to resume operations, but have scaled down expectation after state home dept’s order on consolidated guidelines with additional riders