Handloom textile made-up producers, mosquito net manufacturing and bus body building units, the three main engines powering the Karur economy, started resuming operations gradually here on Wednesday.
The micro, small and medium enterprises, which remained closed for over a month due to the lockdown, made a cautious resumption, amidst uncertainty over future prospects. Units in rural areas have been allowed to resume operations with 50% of staff and those in urban areas could open with 30% staff. All of them have been asked to strictly adhere to Standard Operating Procedure to ensure personal safety.
Collector T.Anbalagan inspected some units and checked whether safety norms such as use of face masks and personal distancing were being followed. He also verified whether thermal scanners and sanitisers were available in the units.
He said officers in the rank of sub-collectors have been appointed to monitor whether the units were following the norms. About 300 units in rural areas and 100 in urban areas have obtained permission to function. Units seeking permission to operate would be inspected by officials to ensure that arrangements have been made for following all personal safety norms. Units violating the directives would face legal action.
Handloom textile units are involved in manufacturing and export of made-ups such as table cloths, kitchen towels, bed sheets, curtains and other home furnishing products. Annual exports from the town is valued at about ₹5,000 crore. The industry employs about 1.50 lakh employees directly and provides indirect employment to an equal number. The industry had suffered heavy losses due to the COVID pandemic across the world leading to cancellation of orders and deferred payments.
On Wednesday, many units resumed operations seeking to execute pending works, which were brought to a sudden halt when the lockdown was enforced in March.
“Some of the units, which really wanted to, resumed operations today. Some others are planning to open by Monday. The District Industries Centre is approving applications swiftly. Teams formed by Collector to inspect units which applied for permission were expected to complete inspections today,” said A. Sethu, Chairman, Confederation of Indian Industry, Karur. However, supply chain of the industry continued to remain broken as dyeing and printing units in Erode district have not opened yet.
Bus body builders
Many of 60-odd bus body building units, which reopened on Wednesday, too faced an uncertain future.
Karur is the hub of bus body building industry in Tamil Nadu, churning out about 200 to 300 fully built buses (over chassis brought in by bus operators and companies) on an average every month. While a dozen odd units that execute orders for the government are on relatively firm ground, the rest are faced with bleak prospects. The industry provides direct employment to about 5,000 workers and indirect employment to another 15,000.
Even if many did not have orders at hand, they had to open to carry out cleaning and maintenance work on machines and equipment. “Some of us may complete a few pending works, which were halted when the lockdown came into force. As of now the future seems very uncertain. We may not have workload for even 50% of our workforce. However, we have resumed work adopting all safety norms” said M.Balaji, secretary, Association of Tamil Nadu Coach Builders, Karur.
Bus body builders are worried that the personal distancing norms that would have to be adopted in buses (as and when public transport is resumed) and the recent diesel price hike may adversely affect their prospects.
“The industry was reeling due to the need to comply with BS VI emission norms and the talk of introduction of electric buses. Not many were purchasing new vehicles. The pandemic has come on top of it. We do not know what is in store for us. Only those executing government orders are doing well,” said Mr.Palanisamy, president of the association.
The industry hopes that the Union government would come up with a good package for MSMEs. “Though a moratorium on loan repayment has been offered, we still need to pay interest. We need waivers. Besides, working capital credit limits should be enhanced without any additional collateral requirement,” said Mr.Balaji.
