BENGALURU: Industries have termed the weeklong lockdown in Bengaluru “misguided” and a big blow to their revival plans.
Srinivas Arasenu, president, Peenya Industries Association, said labourers waited whole April and started leaving for home in the first week of May. “Now, they have returned and some are on their way. Enforcing a lockdown at this juncture will be a setback for us,” he said.
Karnataka Small Scale Industries Association (KASSIA) president KB Arasappa said the move will take a toll on
industry
which is yet to recover from the earlier closure. “We estimate 20% of SMEs have already shut in the state due to the earlier lockdown. Bengaluru has 2.4 lakh registered SME units, employing 25 lakh. We hope the government will revise its decision,” he added.
Devesh Agarwal, president, Bangalore Chamber of Industry and Commerce, said businesses are equally keen on pandemic measures, but a lockdown is not the way forward. “We can assure the government that industries take adequate precautions and put in place the best practises. If we look at cities like Chennai, Pune and Delhi, the government realises economy and jobs are as important as health,” he said.
A major issue industries are facing is financing. Avinash Bandari, who runs Mesha Industries, employs over 200 workers. Despite being eligible for the 20% additional financing under the Centre’s SME scheme, his loan application for Rs 1.8 crore has not been disbursed.
Dayanand Reddy, president, Bommasandra Industries Association, said SMEs are on the verge of bankruptcy. “We are only asking for the 20% additional working capital announced by the Centre. But banks are not interested in lending to industries like us with cyclical cash flows. They prefer businesses like petrol bunks, where there’s daily cash flow,” he said.