Industries affected by the Covid-19 pandemic last year in the Coimbatore district are recovering little by little but now are pushed to the fall again due to the 2nd Covid-19 wave.
Coimbatore: Industries affected by the Covid-19 pandemic last year in the Coimbatore district are recovering little by little but now are pushed to fall again due to the 2nd Covid-19 wave.
There are over 1,50,000 small, medium and large enterprises operating in the Coimbatore district. About 60% of the factories, such as foundries, textiles, power looms, wet grinders, pumps and plastics, are located in rural areas and around 40% are in urban areas.
This includes about 325 large enterprises around the countryside and about 100 large corporations around the corporation areas. The Industries in Coimbatore employs about 5 lakh workers.
In Coimbatore, there are about 15,000 to 20,000 small and micro-entrepreneurs. More than 1 lakh workers are employed in their industries.
Small businesses rely mainly on job orders. Job orders include the manufacture of spare parts for the automobile industry, the manufacture of products required for the manufacture of pump set parts, and the manufacture of machinery for machinery in the textile industry are heavily affected due to insufficient labourers (migrant workers) and other human resources.
When asked about this to James, District President, Tamilnadu Industrial and Micro-Entrepreneurs Association, he said, “Before the Covid-19 curfew, businesses were already facing a major crisis and later they were hit hard by the curfew. None of the loan schemes announced by the Central and State Governments is available to most small and micro-entrepreneurs. Due to this, private finance companies use the loan for their benefits."
He said that companies have been running the business by taking loans from the private finances that charge overpriced interest. "Meanwhile, raw material prices have risen by 40 to 100% since last October.As a result, job order recipients were unable to produce the goods at the previously quoted prices," James added.
He alleged that the hike in raw materials is artificially created by private company owners. "They are making about 300 times as much profit as us. A separate monitoring committee should be set up to control the rise in raw material prices immediately. Many businesses have been shut down due to the rise in the price of raw materials," James said.
It is predicted that the 2nd wave of Covid-19 will have a heavy impact on all business. He stated, "Most job orders have been cancelled at many places. This is due to the lack of clear announcements about the lockdown being imposed again. Migrant workers in Coimbatore have begun to go back to their native places due to the uncertain situation."
James also said, "Over 2 lakh migrant workers went back to their native leaving only 75% of people working here in Coimbatore. In that, hundreds of migrant workers have begun to go back again leaving us stuck without man power. This situation to the Industrialists is very unfortunate. To prevent all of them from shutting down, a separate credit scheme must be introduced, also the loans must be cancelled for a minimum of 1 year."
He also advised that the Government must help people who were unable to repay their loan last year due to the Covid-19 pandemic.
There are over 1,50,000 small, medium and large enterprises operating in the Coimbatore district. About 60% of the factories, such as foundries, textiles, power looms, wet grinders, pumps and plastics, are located in rural areas and around 40% are in urban areas.
This includes about 325 large enterprises around the countryside and about 100 large corporations around the corporation areas. The Industries in Coimbatore employs about 5 lakh workers.
In Coimbatore, there are about 15,000 to 20,000 small and micro-entrepreneurs. More than 1 lakh workers are employed in their industries.
Small businesses rely mainly on job orders. Job orders include the manufacture of spare parts for the automobile industry, the manufacture of products required for the manufacture of pump set parts, and the manufacture of machinery for machinery in the textile industry are heavily affected due to insufficient labourers (migrant workers) and other human resources.
When asked about this to James, District President, Tamilnadu Industrial and Micro-Entrepreneurs Association, he said, “Before the Covid-19 curfew, businesses were already facing a major crisis and later they were hit hard by the curfew. None of the loan schemes announced by the Central and State Governments is available to most small and micro-entrepreneurs. Due to this, private finance companies use the loan for their benefits."
He said that companies have been running the business by taking loans from the private finances that charge overpriced interest. "Meanwhile, raw material prices have risen by 40 to 100% since last October.As a result, job order recipients were unable to produce the goods at the previously quoted prices," James added.
He alleged that the hike in raw materials is artificially created by private company owners. "They are making about 300 times as much profit as us. A separate monitoring committee should be set up to control the rise in raw material prices immediately. Many businesses have been shut down due to the rise in the price of raw materials," James said.
It is predicted that the 2nd wave of Covid-19 will have a heavy impact on all business. He stated, "Most job orders have been cancelled at many places. This is due to the lack of clear announcements about the lockdown being imposed again. Migrant workers in Coimbatore have begun to go back to their native places due to the uncertain situation."
James also said, "Over 2 lakh migrant workers went back to their native leaving only 75% of people working here in Coimbatore. In that, hundreds of migrant workers have begun to go back again leaving us stuck without man power. This situation to the Industrialists is very unfortunate. To prevent all of them from shutting down, a separate credit scheme must be introduced, also the loans must be cancelled for a minimum of 1 year."
He also advised that the Government must help people who were unable to repay their loan last year due to the Covid-19 pandemic.