Centre should solve problem in the larger interest of economy: CII
Supply chain management is getting affected in several ways due to ongoing Samaikyandhra agitation even as the agitation against Congress’ decision to divide the State is turning into a people’s movement. With the rupee slide, imports have come down. Businessmen associated with logistic business have pressed the panic button over frequent dislocation in the movement of trucks, luggage carriers and goods trains. “The Centre should solve the problem fast in the larger interest of the economy.
Hotels are having just 25 to 30 per cent occupancy. Industrial production particularly MSME is affected by 25 to 30 per cent. Freight cost has gone up with trucks being held up at several places due to rasta roko agitations. The delivery schedules are also going haywire,” CII Vizag zone chairman G. Sambasiva Rao told The Hindu. Rupee depreciation has led to 20 to 25 per cent fall in import of coking coal, fertilizers and other cargoes. The port sector is already facing the problem of falling cargo due to recession. There is already a ban on export of iron ore.
Mr. Rao, who is the managing director of Sravan Shipping Services, said the pharma sector was paying a heavy price as they were not able to deliver their products as per original schedule.
Being labour intensive, the workers engaged in Jawaharlal Pharma City, Hetero Drugs and units located at Pydibhimavaram and Ranasthalam are having an uncertain time due to stoppage of vehicles meant for transport of workers regularly by the Samaikyandhra supporters. “The protests have cascading effect on the port sector, stevedores, railways, transport operators and warehouse owners. Hence, a solution to the prevailing impasse should be hammered out without any dilly-dallying,” general manager of Orissa Stevedores Limited J.K. Nayak said.
The agitation has also an indirect impact on sales of Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant, which on an average sells one million tonnes of its products across the State, a senior official said on condition of anonymity.