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Thursday, July 09, 2020

Majority of SMEs working on 20% capacity utilisation: MCCIA survey

The survey showed that around 108 out of 155 units have flagged supply chain issues as a major concern. Similarly, 107 units say cash flow is an impediment to smooth operations. Only 61 (39 per cent) units talked about labour issues as a major problem, while 84 have reported capacity utilisation between 20 to 100 per cent, and 71 have reported below 20 per cent utilisation.

By: Express News Service | Pune | Published: May 28, 2020 9:18:36 pm
coronavirus, coronavirus outbreak, migrant workers, migrant workers in punjab, migrant worker exodus from punjab, punjab industries, indian express news Most of the units have reported unpaid dues worth Rs 2 crore to Rs 3 crore from private as well as government units.

Close to half the small and medium scale industries have achieved 50 per cent capacity utilisation after operations restarted. However, a survey by Mahratta Chamber of Commerce Indutries and Agriculture (MCCIA) of 155 units located in Pune district stated that a majority of the units have complained of disruption in supply of raw material.

Industries have started calibrated steps to resume operations after being shut down for more than 60 days. Sanitising premises, thermal scanning of employees and distancing are the new mantra as the industry sector tries playing its part in reviving the economy in the wake of the Covid-19 outbreak.

Pimpri-Chinchwad Municipal Commissioner Shravan Hardikar had allowed industries to restart with 100 per cent manpower.

The survey showed that around 108 out of 155 units have flagged supply chain issues as a major concern. Similarly, 107 units say cash flow is an impediment to smooth operations. Only 61 (39 per cent) units talked about labour issues as a major problem, while 84 have reported capacity utilisation between 20 to 100 per cent, and 71 have reported below 20 per cent utilisation. Most of the units have reported unpaid dues worth Rs 2 crore to Rs 3 crore from private as well as government units.

Prashant Girbane, director general of MCCIA, said while economic activities had gone up, the sector still faced multiple challenges. “The government needs to closely monitor to ensure that banks transmit credit to the MSMEs,” he said. Similarly, the chamber has also asked to further strengthen the Employment Bureau to help industries meet the labour demand-supply gap. “Government at all levels and PSUs (public sector unit) need to publish periodic reports on delayed dues paid. We are hopeful that starting first week of June, there is further increase in economic activities,” he said.

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