Industries face manpower crunch despite relaxations

Gurgaon: It has been over a month since the Centre announced lockdown relaxations and two weeks since the roll-out of a stimulus package for micro, small and medium industries, but most in the Gurgaon-Manesar belt are still operating at 20% to 25% of their capacity. With a resumption riddled with shortage of manpower, low demand and cash crunch, they are struggling to land on their feet, and industry insiders believe it will take at least two more months.
“While we have been allowed to open the industrial units, there is a serious shortage of workers as many have returned home. At the same time, the government is also facilitating their return home,” said Rakesh Batra, owner Shantispad Limited.
The exodus of migrants workers along with movement restrictions for those who have stayed back, have cumulated into a major hurdle, especially for the industries in Udyog Vihar industrial area. “Things have certainly improved with the Delhi-Gurgaon border opening up, and we are almost at 50% production capacity. However, many mid-management level people can’t come to work due to mobility issues and self-regulation of some RWAs,” said Animesh Saxena, who runs a garment manufacturing unit in Udyog Vihar.
The automobile sector is still reeling from the slump in demand. “Our production is dependent on the three major players including Maruti, Hero and Honda. While Hero has picked up pace in production, the other two are barely functioning at 25% of their total production capacity. Hence, the demand for parts is also low hurting the ancillary units,” said the owner of an automotive parts manufacturer from Gurgaon.
The relief measures for the MSMEs announced by the state and the Centre are yet to have their impact. “There is no money in the market and though the government has offered schemes for availing credit, they aren’t exactly what the industries need now,” said Deepak Maini, Industrial Development Association. Saxena concurs and says while banks are approving loans, it is actually more a financial burden on industries rather than a benefit. “Banks are offering credit at interest rates as high as 9.5%, which is apt for those who need money right away but in the long term, it will become a burden on industries,” said Saxena.