EFSI seeks spl relief package to revive TN industries

Citing a severe slump in business

due to lockdown necessitated by spread of COVID-19, Employers' Federation of Southern India, representing the MSME sector and traders in Tamil Nadu, has urged the state government to come out with a special relief package to revive the industry.

The association, representing over 750 companies having presence in textile, sugar, cement, plantation and leather, said several companies have halted production and were facing issues like piling of huge inventories, inreasing raw material cost and loss of revenue.

The coronavirus pandemic has so far claimed 11 lives in Tamil Nadu.

The government has announced a lock down till April 15, 6am.

 

"There has been a severe slump in business, resulting in some industries facing heavy losses and paying employees full salaries even though the factories were not operated for many days", EFSI President R Srikanth said in a letter to the State government, a copy of which was shared with PTI.

With no idea of whether the lockdown would be lifted after April 15, the future for the industries is "unpredictable and uncertain", EFSI said.

The Association, which is in its centenary year, suggested that the government announce relief measures to tide over the situation so that all stakeholders resume normal operations over a period of time.

Some of the suggestions include extension of time limit for renewal of licenses, submission of returns under various labour enactment and extension of inspection related approvals upto June 30, 2020.

The traders' body also sought permission to operate 12 hours shift for six months to reset production lines to a higher capacity and exemption to work compensatory days for the lock-down days.

EFSI also suggested payment of 50 per cent of wages in respect of workers earning more than Rs 24,000.

Srikanth suggested that the revision of Dearness Allowance with effect from April 1, 2020 be deferred by six months

"We request the government to consider our recommendations as such relief is crucial for the growth of industry in the state and to provide employment to millions of citizens," he said.

He suggested that the government consider an interactive session with senior industrialists through video conferencing to seek their views in order to revive economic activity in the state.