Karnataka Small-Scale Industries Association (KASSIA) has expressed concern over the likely consequences of the scheduled lockdown of Bengaluru from July 14 to 22 on the industry, in particular the micro, small and medium enterprises (MSMEs) which have barely recovered from the earlier lockdown.
At a press conference on Monday, KASSIA office-bearers said that while it was necessary for the government to take hard and effective measures to tackle the worsening COVID-19 crisis in the city, what was worrisome was the inevitable consequences all this would have on the small-scale industry sector, which may be “completely shattered” as a result. “As we have already conveyed to the government, close to an estimated 20% SMEs have shut down in the State because of the earlier lockdown and the decision to reimpose lockdown for a week will further drive a large number of units out of business as they will hardly be in a position to suffer the impact any more. Of MSMEs alone, Bengaluru has nearly 2,40,000 registered units, employing 25 lakh persons and with investments in the range of ₹40,000 crore. This is excluding the unorganised sector, which is close to the organised numbers. The economic and social impact will, therefore, be disastrous,” said K.B. Arasappa, president of KASSIA.
He also said that no entrepreneur would be able to pay wages under the circumstances and tens of thousands of workers may never be re-employed, even after normality returns.
The industry body asked for permission for industrial units to operate a single shift by following necessary protocols. It said that ensuring industrial units function is no less vital to the State and the economy than the supply of essential commodities.