E-Paper
UP: MSMEs awaiting relaxation in guidelines
Even after four days of the government’s initiative for a staggered lift of the lockdown for industries and resumption of partial production, there has been no response from industries across the state.
Even after four days of the government’s initiative for a staggered lift of the lockdown for industries and resumption of partial production, there has been no response from industries across the state.
Stringent guidelines of the government for running an industrial unit have proved to be a deterrent for industrialists.
On Thursday evening, however, there was some assurance from the Centre to India Inc to roll back the FIR clause in the guidelines.
Industry associations are opposing the guidelines, including lodging of an FIR against the factory owner if any of his employee tests positive for coronavirus.
“If the government is able to address major concerns of the industry, then from coming Monday onwards we can see resumption of some industrial activity in Uttar Pradesh. The government has assured to roll back the FIR clause in the guideline,” said Pankaj Kumar, national president, Indian Industries Association (IIA).
After directives from the Centre, the Yogi government had permitted industries to resume production from April 20 onwards. For this, the government had made following of guidelines in all industrial units mandatory to check spread of coronavirus.
Barring industrial units in ‘essential goods’ category, all are shut across the state.
Out of an estimated nine lakh micro small and medium enterprises (MSME) registered with the Indian Industries Association (IIA), an industry lobby body of MSMEs, only a handful of around 7000 were operational across the state on Thursday.
Even these were working on half the capacity and facing problems in continuing production.
“No MSME has resumed production across the state. Only those listed in ‘essential goods’ category are operational. We have come across three cases in which FIR has been lodged against factory owners,” said Manmohan Agarwal, general secretary, IIA.
“One case is of Kasna industrial area, Greater Noida, Uttar Pradesh and the other two are of Thana district, Maharashtra,” added Agarwal.
Ministry sources in the state government said that they were also looking at ways to address problems of the MSMEs but could do little as the guidelines had been framed by the Centre and they were in no position to dilute them.
“Any relaxation in guidelines has to come from the Centre. The union MSME ministry has to take a decision in this regard,” said a state government official.
The biggest challenge for small business owners is dwindling operating capital.
