From Our Special Correspondent

Daijiworld Media Network

Bengaluru, July 13: Karnataka Small Scale Industries Association (KASSIA) has expressed its deep concern over the likely consequences of the one-week-long lockdown in Bengaluru Urban and Rural districts from July 14 night to July 22 morning on the industrial sector, particularly MSMEs, which have barely recovered from the earlier closure on account of the COVID-19 crisis.

While it is certainly necessary for the State Government to take hard and effective measures to tackle the worsening pandemic in the city, KASSIA President K B Arasappa said the inevitable consequences on the wholly beleaguered small industry sector were a matter of worry as the sector may end up completely shattered as a result.

``As we have already conveyed our apprehensions to the State Government about an estimated 20% SMEs being shut in the State due to the earlier lockdown and the decision to clamp a fresh lockdown for a week will further drive a large number of units out of business as they will hardly be in a position to sustain the impact anymore,’’ he said.

He said Bangalore has nearly 2,40,000 registered MSME units with an employment of 25 lakhs and investment in the range of Rs 40,000 crore. ``This is excluding the unorganized sector which close to the organised numbers. The economic and social impact will, therefore, be disastrous,’’ Arasappa warned.

While enterprises will bleed and never be able to recover disempowering the small entrepreneur with all likely negative outcomes, the effect on labour and jobs will be extremely harmful.

``Allow at least single shift work’’ ``No entrepreneur will be able to pay wages under the circumstances and tens of thousands of workers may never be reemployed, when normalcy returns,’’ KASSIA President said.

``While we are with the government in the fight against the pandemic, we nevertheless would like to urge the Chief Minister to seriously consider possible ways to allow industry to operate at least a single shift in the prevailing situation following the necessary protocols,’’ he said in a press release.

Arasappa said KASSIA believes that ensuring industry, particularly MSMEs, to function is no less vital in the best interest of the state and the economy, than maintenance of essential supplies.

It was roughly estimated that the earlier one month lockdown cost the state Rs 10,000 crore in revenue and Bangalore being the major source of up to 70% of these revenues, it is not hard to estimate the loss from one week of closure of the metropolis to the exchequer, he pointed out.

It is also to be noted that there is need to bring a sharper focus on the wards in the city to contain the spread of the disease by more effectively using the elected representatives and the local government machinery in everyones interest.

KASSIA, would fervently appeal to the Chief Minister and the government to seriously weigh the consequences of the measure employed on livelihoods of the vulnerable and the impact on productive sectors.

``While we completely understand the need to contain the spread in everyones interest, the measures must be well thought of and sustainable. Our earnest appeal to the government is to make all possible efforts to help industry function at least on a single shift, by ensuring necessary logistics in the larger interest while all of us do our utmost to control the pandemic collectively,’’ he added.