Industry on a whole is going through a major lockdown mode. While certain bigger corporations are still functioning at lessened capacity the micro and small industries have been the hardest hit.
Vizag which is home to some of the most prominent PSUs in the country has a large SME base which depend on these bigger organizations.
‘There is total zero activity and zero communication. The micro and small enterprises are in a full closure phase’ stated Mr Balaji president of VASSIWA speaking to Vizag Industrial Scan.
It is informed that close to 3000 micro and small units have temporarily shutdown in the city with the Autonagar area alone having 2000 units.
‘I would estimate that at leastRs200crores worth of business has already been affected just in this period’ stated the president VASSIWA.
Mr Krishna Mohan of Inspiredge solutions states that this is a dire situation for all SMEs across the board.
“We have closed down all our plants across the country. We too are in a total lockdown situation. Albeit our industry has been going through a rough patch since a long time, despite this we are not laying off people’’ —Mr RK Saraf, FACOR
‘Unfortunately companies and job creators are not given due recognition. Over regulation and excessive monitoring often stifles our growth. More over in a situation like this if the government doesn’t come to our rescue in a big way am afraid the situation can go from bad to worse’ stated the founder and CEO of Inspiredge.
Suggesting an economic relief package for companies Krishna Mohan who is also a SME council member in NASSCOM proposes the government to lend an interest free loan to companies re-payable over a 5 year term.
‘I suggest to the government that 50% of all the taxes that have been paid by a company in the last 5 years is given back to them as an interest free loan payable over a 5 year period. This will substantially help SMEs in navigating these unprecedented times’ opined Mr Krishna Mohan.
Ferro Alloy Units
AP’s Ferro alloys industry which was already in the doldrums has been further pushed into a bleak situation.
‘We have closed down all our plants across the country. We too are in a total lockdown situation. Albeit our industry has been going through a rough patch since a long time, despite this we are not laying off people’ stated Mr RK Saraf of FACOR.
Many larger corporations on the other hand are functioning but at reduced capacity and with enhanced precautions. Vizag steel plant has undertaken a slew of measures to protect their staff’s health and safety.
‘RINL-Visakhapatnam Steel Plant has initiated various measures to fight against the COVID-19pandemic’ stated Mr PK RathCMD, RINL.
Some of these measures undertaken by RINL include awareness campaign by emphasizing social distancing, sanitization of all areas. It is also informed that more than 100 Thermal scanners have been provided at various places in the plant.
The plant however has stopped one of its blast furnaces and is functioning with 2 blast furnaces.