Corona curfew hitting production, UP industrialists tell govt
The ongoing statewide corona curfew has derailed economic activity despite the government’s clearcut orders to keep industrial units running during this period.
In a virtual meeting with state industrial development minister Satish Mahana and MSME minister Sidharth Nath Singh on May 11, industrialists apprised the government of their problems, including disruption in transport services across the state.
The two ministers convened the meeting after reports of slowing down of industrial activity. Industry lobby bodies have also made several suggestions to the state government to bring business activity back on track.
Transport services disrupted
After the state government imposed corona curfew to check spread of Covid-19, offices of almost all transport companies, including those in the state capital, were shut. As a result, raw material could not be delivered to the manufacturer.
“After the corona curfew was announced, most of the offices of transport companies got shut. Fearing action by cops, no one is willing to open office,” said Manmohan Agarwal, national senior vice president, Indian Industries Association
(IIA). “We have requested the state government to allow offices of transport companies to open and allow their staff to commute,” Agarwal added.
Export orders stuck
Manufactures also apprised the government that export orders were stuck due to non-availability of raw material.
“Exporters are not able to deliver orders due to non-availability of raw material. Several exporters have complained that their orders will get cancelled if they are unable to fulfil them by the end of next month,” said Agarwal. Export orders from several Latin American countries and Russia are stuck due to scarcity of raw material.
Maintenance in factories
Maintenance work in factories has also been affected. Industrial units are not able to get workers and necessary spare
parts if there is any technical problem in the machinery.
Extension of loan moratorium
Industry lobby bodies have requested the state government to take up the issue of extension of payment of interest on loan availed by them last year with the Centre. They have requested to extend this moratorium period by a year.
“We do not want waiver of interest on loan but extension of loan moratorium by another year as industrial activity is yet to revive due to intense second wave to Covid-19,” said Agarwal.
Any decision on this issue has to be taken by the Centre. Last year, the Centre had offered emergency loans to industrialists and had given a moratorium of a year on payment of interest. This period will expire by the end of this month.