‘Relief package must for speedy revival of small-scale industries’

Industry & Lockdown

Naavniit Miterr, the Chairperson of CII, Amritsar, and the managing director of Syska Miterr Pvt Ltd, says the Covid-19 crisis and lockdown will hit hard the small and medium scale manufacturing units in Amritsar.

“I personally feel that many will perish as they will not be able to bear the financial burden even after the lockdown ends,” he said. With lots of automobile parts manufacturing units based in Pune, Uttarakhand and Amritsar, Miterr, whose company has a turnover of 200 crore and employs 500 persons, spells out challenges that MSMEs face in Amritsar due to the lockdown. Here are the excerpts of his interview with Neha Saini.

How has lockdown impacted auto parts manufacturing industry?

Most units are already shut down after the MHA notification and the global crisis has hit the production by at least 30 per cent. Demand and supply chain disruptions are being experienced. We, too, have shut down operations in our three units temporarily. Recently, we have got the permission to open our Uttarakhand unit on the condition that all the required arrangements must be made under the Covid-19 safety protocol guidelines. We have 125 employees working in our Uttarakhand unit, but at this time we will run the facility with only 30-40 employees.

The industry will see a very painstakingly slow pace for the next few months after the lockdown is lifted. The local wagers might find their life back on track once industries open but we do not have reserves to support sustainability of small and medium enterprises. Unless relief packages are given by the government, the road to recovery will be very slow. Naavniit Miterr, Chairperson of CII, Amritsar, and MD of Syska Miterr Pvt Ltd

What is the biggest challenge you face in operating the unit?

The biggest hurdle is the MHA directive that states criminal action will be taken against the management of any industrial unit if any Covid-19 patient is found in its premises. How can the state expect industrial units to start operations after this warning? Many industrial units are ready to open, but only if the clause is defined with practical relaxations. The interpretation of the law is not business-friendly. Also, with only 20-30 per cent staff is working, the social distancing norm will automatically apply.

How are you bearing costs and wages of your workers?

We have been giving them financial as well as other support for now. As per the guidelines, we are already paying them ESI and paying the monthly premium that they can access if required. But in the longer run, it will be difficult for MSMEs to bear such costs as there is hope of no revenue generation at least for two months ahead.

What would be the situation like after the lockdown?

I think that Amritsar’s small-scale cottage industry, including weaving and knitting units, will be forced to shut shop. Also, after the lockdown, the biggest challenge will be to arrange for labourers, most of whom have returned to their native villages in UP and Bihar. The labour cost will be high and production slow, which will have an impact on the demand supply chain.

What, according to you, should be the roadmap for revival?

The industry will see a very painstakingly slow pace for the next few months after the lockdown is lifted. The local wagers might find their life back on track once industries open but we do not have reserves to support sustainability of small and medium enterprises. Unless relief packages are given by the government, the road to recovery will be very slow.