Noida factory owners: Worst of note ban is over

City-based factory owners said that the worst phase of the cash crunch is over. The said that with the relaxation of norms by the Reserve Bank of India and increase in cash liquidity, the future of Indian economy is positive.

City-based factory owners said that the worst phase of the cash crunch is over. The said that with the relaxation of norms by the Reserve Bank of India and increase in cash liquidity, the future of Indian economy is positive.

Factory owners said they have ensured that workers salaries are paid. (Burhaan Kinu/HT File)

Demonetisation, which was announced as an effort to tackle black money and corruption across India, also brought cash crisis and hit the unorganised labour sector and small-scale industries, as payments were pending and salaries were held.

In Gautam Budh Nagar, more than 5 lakh daily wage workers are engaged in skilled/unskilled jobs in several industries.

Ashish Malhotra, the managing director of Ashish Manufacturing company, said, “I believe the worst period was the first 30 days after demonetisation when there was no cash. However, in the past 60 days, the situation has improved and cash withdrawal norms, relaxed. In the first 30 days, people deposited cash to exchange for new notes. This resulted in an increase in cash liquidity in the market.”

Malhotra, whose company is engaged in manufacturing aluminium products, said that digital medium of transactions is the future of Indian businesses.

“We had already opened salary accounts of our employees, so we never had an issue with their salary payment. It was difficult for the employees to withdraw cash from ATMs and bank branches but at least it was ensured that their salaries were paid. I believe with demonetisation and subsequent digitalization of the Indian economy, many due payments have been cleared,” Malhotra said.

RK Bansal, the chairman of Indian Industries Association, Noida chapter, believes that industrialists in Noida have defeated the cash crunch by adapting to cheque and card payment system.

“I ensured that more than 500 employees in my company (Celestial Knits and Fabs private limited) have opened salary accounts. When we send our men to places such as Sadar Bazaar and Nehru Place to buy commodities in bulk, we always paid in cheque and card. The situation has improved now,” Bansal said.

However, many small-scale vendors are still trying to cope with the cash crisis. “We have to buy raw material from Sadar bazaar to manufacture soles of shoes and sandals. As a small business, we have been facing issues regarding payment. In fact, it is much cheaper to buy shoes from Sadar than to manufacture it here and sell,” Liyaqat, an employee at a shoe manufacturing unit, said.