Even as state governments have asked the Centre to consider extending the ongoing lockdown beyond April 14, there is pressure on the central government to allow certain industries to resume operations partially and with caveats to follow the mandatory protocols for health care and social distancing. Since the lockdown was announced on March 24 to check the spread of Covid-19, only those manufacturing units such as pharmaceuticals or those that form the supply chain for essential items are being permitted.
According to a few BJP lawmakers, during their interaction with the state administration and party workers across the country, the need to restart a certain section of industries such as food processing, bottling and packaging, and textiles, has been repeatedly flagged.
A Member of Parliament (MP) from Bihar said many industrial groups (which he declined to name) expressed concern that it might be difficult to bring back the migrant workers who have moved back in large numbers to their respective native states.
“There is a concern that with states looking after the essential needs such as food and ration and the Centre fast-tracking direct benefit transfers, workers may not return once the lockdown conditions are eased. In that case, there may be a crippling impact in many sectors in the absence of the workforce,” the MP quoted above said.
A second MP from Maharashtra said that with the Covid-19 cases now being reported from at least two districts in the state, monitoring of migrant workers and movement of people needs to be further enhanced. The MP said the demand to ease restrictions have been made by the micro, small and medium enterprises, which has expressed inability to foot wages unless they are allowed to function.
“The MSMEs have requested that in a phased manner, in regions where the spread is limited, production should be allowed after April 14, even if the lockdown is extended,” the second MP said.
A group of BJP MPs have also given wide-ranging suggestions to cope with issues related to economy and job creation in the aftermath of the coronavirus pandemic to party president Jagat Prakash Nadda.
According to a person aware of the details, these MPs presented first part of the report before the nation-wide lockdown was announced on March 24, which gave suggestions on how to mitigate the impact of the pandemic which has left 149 dead in India.
Suggestions such as increasing liquidity, increasing the duration of MNREGA work and relaxations to the MSME sectors were also shared with the finance ministry that announced the Rs 1.70 lakh crore relief package.
While three of the MPs who were part of making this report declined to comment, the person quoted above said the second part will have more focused suggestions on how to meet the challenge of job creation when the economy has taken a hit, ramping up agriculture produce and scaling production in the MSMEs.
These suggestions will be shared with the government, which is working on an economic stimulus package expected soon.
The All India Manufacturer’s Association has claimed that 70 per cent of the MSME establishments were unable to pay either partially or fully the wages for March. Sudrashan Sareen, president of the association said in the absence of generating revenue plus on account of unpaid dues from the government, MSMEs across the country are reeling under a financial crisis.
Govind Lele, general secretary of the Laghu Ugyog Bharati (LUB), an affiliate of the RSS that works with the MSMSE sector said while it was true that small manufacturers are facing the brunt of the lockdown, easing restrictions to resume production cannot be done without assessing the impact it will have on checking the spread of the pandemic.
“In smaller manufacturing units social distancing is not possible and there is no way to certify workers (to be free from the virus) so that production can be resumed without fear,” he said.
“The fear that industries will come to a grinding halt if workers show unwillingness to move back is exaggerated,” said Amitabh Kundu, distinguished fellow at the New Delhi-based think tank Research and Information System for Developing Countries.
“I think that the fear that migrant workers who have moved back to their villages may not return after three months, is a bit exaggerated. The total purchasing power in the rural areas is low and the demand for labour will come down significantly after this present season. These migrants are likely to return once the industries begin operations,” Kundu added.
