Amritsar MSME units face existential crisis

Neeraj Bagga

Tribune News Service

Amritsar, May 7

The industrial sectors, including hospitality, textile, pharmaceutical and engineering, have recorded unprecedented job loss due to the lockdown.

The pan-India shutting down of economy is having a catastrophic socio-economic impact as it is expected to wipe out considerable capital of the MSME (micro, small and medium enterprises) units, which will further lead to job loss and reduction in industrial output.

APS Chatha, president, Amritsar Hotel and Restaurant Association, said global and national hospitality chains operating luxury properties in the holy city had already fired nearly 25 per cent staff and effected salary cuts between 50 and 70 per cent.

In the unorganised sector, where a majority of the hotels fall, proprietors have conveyed to their staff that they would be re-employed only when hotels resume functioning.

Job loss in the MSME units is immense where the proprietors are claiming their capital was being eroded with each passing day.

Amarjit Singh Asal, a Left leader, said, “Construction and domestic workers have lost jobs. Thousands of workers earning their wages as per their daily output and on job work basis like weavers have lost their livelihood.”

Johny Dhawan, who runs an embroidery unit, said about 5,000 people were employed in nearly 170 embroidery units, most of which saw a decline following import of high technology machines. He said there was nearly 50 per cent salary cut of employees in April.

Warp knitting is a leading arm of the textile unit in the city. The total turnover of Punjab’s warp knitting industry is around Rs2,000 crore with Amritsar contributing a major share. Wrap knitting fabrics are used in a range of items including upholstery of cars, home textiles, travelling accessories and men’s and women’s wear.

Ajay Mehra, president, Amritsar Warp Knitting Association, said: “Salaries for March were paid. For April, a decision was yet to be taken after talks with workers. He said the ration need of the workers and their families was being taken care of.”