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Industry check: Pune runs under virus prevention cover, Pimpri-Chinchwad units see 20% worker absenteeism
While small scale industries in Pune has reduced working hours and follow prevention norms, the manufacturing industries in Bhosari Maharashtra Industrial Development Corporation (MIDC) see 20 per cent absenteeism of labourers
Pune:The industry in Pune and Pimpri-Chinchwad has been affected by the coronavirus outbreak. While small scale industries in Pune has reduced working hours and follow prevention norms, the manufacturing industries in Bhosari Maharashtra Industrial Development Corporation (MIDC) see 20 per cent absenteeism of labourers.
“The industrial units within Pune city are running and following the virus prevention measures,” said Ramesh Rathod, vice-president, Gultekdi Industrial Estate area, one of the oldest small scale industries units in Pune.
“There are 40 small scale industries here employing over 1,500 workers. We have not yet stopped work, but do not extend our daily task beyond 5 pm and follow the required preventive measures. We will close the industries if the government gives a directive.”
Prashant Girbane, director general, Maharashtra Chamber of Commerce, Industries and Agriculture (MCCIA) said, “First of all, the governments at the central, state and local level are doing a very good job of managing the health crisis. We all as citizens and industries need to support them. Following their direction of ‘social distancing’ and maximising on ‘work from home’ is very important.
This health crisis will lead to economic crisis world over and also in India. Pune region is an important manufacturing and IT hub and hence it will also get impacted negatively.
Given that this economic crisis will begin with supply side shocks, monetary policy (further rate reduction) is necessary, but not sufficient. Next few weeks and months will see challenges of delayed payments and non-performing assets (NPAs) and hence financial lenders must be given space to provide moratorium for a defined period of time. Liquidity would be stretched and hence a sizeable fiscal stimulus would be needed. One of the most urgent things to do would be for public sector undertakings (PSUs) to immediately pay their dues worth lakhs of crores to private companies.”
The manufacturing industries in Bhosari Maharashtra Industrial Development Corporation (MIDC) see 20 per cent absenteeism of labourers after Covid-19 (coronavirus) cases were reported the industrial town of Pimpri-Chinchwad. The panic labourers are planning to leave for their hometowns.
Sandip Belsare, president, Pimpri Chinchwad Small Industries Association, said, “Industries here are facing a hard time. It had revived from an economic slowdown only a few months back before the virus fears hit the sector again. Pimpri-Chinchwad has reported one of the highest virus positive cases in the country. Though the government gave the ‘work from home’ facility, but it cannot be applied in manufacturing industries. We are facing 20 per cent worker absenteeism and the figure is expected to rise if the situation does not improve.”
Belsare said that at least two lakh labourers, mostly hailing from Uttar Pradesh, Andhra Pradesh, Bihar and rural parts of Maharashtra, are employed in Pimpri-Chinchwad industrial area.
“We tried to convince the workers from going to their hometowns, but they said that their relatives are pressurising them to return. We have provided the labourers with masks, sanitisers and soaps, and have advised them to not come for work if they are unwell. We appealed to them to postpone travel by at least a few weeks, but they were not in a state to listen.”
The official said that the industrial units are yet to receive a total lockdown directive from the government.
Abhay Bhor, president, Forum of Small Scale Industries Association, said, “The virus pandemic across the globe has affected the industries located in Pimpri-Chinchwad belt, Chakan and Talewade that deal with export and import. Pharmaceutical and electrical engineering units here mostly depend on raw material from Europe and China that are now in the grip of virus. At least 1,000 electrical engineering units in Bhosari E block have been affected by the virus outbreak.”
He said, “The auto component units have been affected because of lack of supply of imported spare parts. These units had already heavily invested to upgrade to BS-VI emission standards and were settling down before the virus spread hit the sector again.”
The automotive industry faced one of the worst slowdowns ever and the transition to BS-VI emission standards on April 1, 2020, forced the units to upgrade its machinery.
BS VI or Bharat Stage VI is the new emission standard that all vehicles in the country will have to adhere to from April 1, 2020. The sale of BS-IV vehicles will also cease from this day. The Supreme Court in its October 24, 2019 ruling stated that no BS-IV vehicle would be sold with effect from April 1, 2020.
