‘Lack of govt aid, anti-industrial policies ruining cycle business’

INDUSTRY & LOCKDOWN

Rajneesh Lakhanpal

Tribune News Service

Ludhiana, June 7

Gurjot Singh Sachdeva is the owner of Shatabadi Cycles, a venture of Amrik Singh Sachdeva Group, engaged in manufacturing and trading of cycle parts for the past 58 years from Miller Ganj, Ludhiana.

He feels that the Covid-19 pandemic has hit the industry badly. Lack of aid from Centre as well as the state government and anti-industry policies have added to the woes of the industrial sector. Shortage of labour, non-availability of raw materials, price management, demand and supply fluctuations are being faced these days, which the industry has never faced since its inception and it may take years to bring things on track.

Numerous cycle manufacturing and trading units have been closed due to the lockdown. The decision to implement the lockdown was taken by the government without considering the interests of industry. The move has created chaos in the entire chain of goods, supply and receiving of payments. Most of the cycle industry used to supply goods on credit basis but due to the lockdown, payments got stuck as the dealers throughout the country faced monetary/financial crisis as there was a shortage of cash flow in market. Even new forms which have been formulated by the government are against industry. It is very difficult for any industry to have an effective and efficient production by complying with such norms.

How are you tackling issues related to labour?

As the decision of the lockdown was taken suddenly, most of the labour, especially the skilled workers went back to their native states and there are very grim chances of them returning to their workplace anytime soon. After the opening of shops and markets, there is demand of cycles and its products but due to the shortage of labour, the manufacturers are not in a position to manufacture the goods as per the market demands. During first three phases of the lockdown, the industry made all efforts to provide salaries and other basic amenities to workers with the hoping they will not leave for their homes. However, when relaxations were accorded in transportation almost 70 per cent of labour travelled back to their hometowns. Now, the labour is working on double rates and on their own terms and conditions which have increased the cost of production. It would adversely affect the pocket of the consumer.

Have the Centre and the state government offered any help?

No direct help was given by the Centre or the state government. No relief package has been given to the cycle industry by both the governments. Even the GST refunds were not being released. Cumbersome procedure has to be followed for the recovery of already paid GST by the industry to the government, which has resulted in the shortage of capital. Even no interest or loans have been waived off by the government for the industry. Anti-industry policies of both the Centre and the state government have broken the backbone of industry. Small scale industries are at the verge of closure and big business have been hit hard by the on-going crisis. Every business enterprises is running with the shortage of funds as during lockdown period they had to bear all the expenses of the labour, electricity bills, interests on bank loans, management and other miscellaneous expenses and that too without having any source of income.

What are the post-lockdown scenarios for the industry?

There is a need of appropriate policy to be formulated by the government for the promotion of export and manufacturing of Indian goods. Ludhiana is a manufacturing hub of cycle industry. Cycles and its products are supplied from Ludhiana to almost every corner of the country and even abroad. At present, our industry is facing the biggest challenge from China. Due to the lockdown, there is decrease in the production and most of the industry is lacking the funds of its own. Hence, we are not in a position to compete with China, where the production is high due to latest technology and advanced machinery.

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