Industrial turnover declined by 70 per cent

Aurangabad, May 26:

The second wave of coronavirus has hit the industry hard. The economic turnover in the sector has declined by 70 per cent. While the source of income is closed, loan installments, workers salaries, electricity bills and other establishments continue to be spent. Therefore, a new crisis is facing the entrepreneurs. Industry experts have estimated that if the lockdown continues the sector will face a loss of Rs 3,000 crore in the financial year 2021-22. The demand for a separate financial package for entrepreneurs has come as the growing outbreak of corona has had a major impact on business.

The second wave of corona had a serious impact on the industrial sector. The supply of raw materials is disrupted due to disruption of the transport system. About 5000 trained migrant workers have left for their villages at the beginning of the lockdown. Most companies now lack trained manpower. Therefore, there is also a shortage of workers. Likewise the local staff are not ready to come to work. As industries producing oxygen are ordered to sell oxygen only for medical purposes, the oxygen required for the industrial sector is not available. As a result, it has become impossible for welding, steel, scrapping companies to work. While most SMEs are closed, workers have to be paid. The electricity bill, other costs and loan installments continue. The lockdown has slowed down consumption of goods in markets, hence resulting in low demand for produced goods. As a result, the turnover fell by 70 per cent. Therefore, it is difficult to say how many entrepreneurs will survive the third wave.

Raw materials are not available

There is a shortage of workers, restrictions and no supply of industrial oxygen. So we have to face many difficulties. Even there is a shortage of raw material. The salaries of the workers, installments and other expenses continue. Entrepreneurs are in a tremendous crisis, said CMIA president Kamleish Dhoot.

Box:

Might lose 30 per cent business

If the ongoing economic crisis continues then the industry might lose 30 per cent of business in the current financial year. The supply of raw materials and sale of goods has been disrupted. The total loss might be up to Rs 3,000 crore, said Massia president Abhay Hanchanal.