Rajasthan: Factory capacity utilisation at 40%, industry jittery over rising Covid cases

JAIPUR: The spurt in number of positive cases in the industrial regions of the state is bringing back fears of another lockdown for the industry which is struggling to increase capacity utilisation.
The second round of lockdown in some states to control the spike in infections is playing on the mind of industry in Rajasthan where the pandemic seems to be going out of control with larger case load in the past one week. Industry associations in Bhiwadi, Jodhpur, and Jaipur said any fresh lockdown will be more damaging because if the labour goes back now, it would be impossible to bring them back.
“After much difficulty, the industrial units have brought back some of their employees. Even though it is a struggle, the companies have restarted their operations. But if there is any new curb on industrial activity, all the efforts to resurrect manufacturing will be futile,” said B M Mittal, president of Bhiwadi Manufacturing Association. Industry representatives in Jaipur said with demand recovery yet to gain momentum, manufacturers are unable to raise their production capacity which is stuck at about 40%.
“Demand from domestic market is rising very slowly. Export orders still remain minuscule. Shortage of labour has become a handicap. There is fixed cost to all businesses. Businessmen cannot keep their factories shut for a long time as the liabilities will keep on piling up. While most have restarted their operations, it is very difficult for them to raise the production capacity which is stuck at around 40% now,” said Suresh Agarwal, president of Federation of Rajasthan Trade and Industry.
Businessmen in Jodhpur, which has recently seen a sudden spike in cases, are also apprehensive, but they said the world has to live with the threat and there is no point in putting curbs on economic activities which are in any way not in a great shape.
“Fortunately, there is not a single industrial worker found positive. But the bigger challenge is not to take any decision that would impact industry. Already, the industry is operating at a very small scale. Economic activity will be the key to provide jobs and livelihood to people. The corona pandemic will stay here for some time and we have to learn to live with it,” said Sunil Parihar, patron of Marudhara Industries Association in Jodhpur.