Confusion over industrial operations in Bengaluru during lockdown, which commenced on Tuesday night, has cost the sector dear. Without a clarity on industrial operations, a sizeable workforce moved out of Bengaluru before the lockdown curfew began, affecting the operations on Wednesday.
The industry estimates between 40% and 50% of the workforce remained absent on Wednesday as industries did not have clarity over lockdown norms, and about 30% of industries remained closed. If the guidelines issued on Tuesday morning by Chief Secretary T.M. Vijaybhaskar allowed industrial operations in food processing industry, pharmaceutical, medical instruments and packaging industry among a few others, it was only later in the evening that Department of Industries and Commerce clarified that all industries could function.
“However, by the time we received clarification, most industries had allowed workers to leave early as the lockdown curfew would kick in by 8 p.m. Our estimation is that about 50% of the workforce, mostly dependent on public transport and hotels for their food, have left,” Federation of Karnataka Chamber of Commerce and Industries (FKCCI) president C.R. Janardhan told The Hindu. “The confusion also arose as one of the Ministers had earlier asked those who wanted to leave Bengaluru during the lockdown to leave before curfew. We had been earlier informed that there will be no exemptions,” he said.
The Karnataka Small Scale Industries Association (KASSIA) put the number of workers remaining absent on Wednesday around 40% while about 30% of industries remained closed. “As it is, 20% of the industries have not reopened after the first lockdown, and this local lockdown has further affected the industries,” KASSIA president K.B. Arasappa felt.
Not consulted
For the industrial sector that had barely started normalising operations after being allowed to start on May 18, this round of lockdown is another blow. Not only are the operations affected, the supply chain has also been disrupted. What has hurt the industry more is that it was not consulted, it is learnt. The government was adamant about total lockdown, only to rescind by Tuesday evening.
In fact, Mr. Janardhan said efforts were made to convince the administration to spare the industry citing examples of how other States such as Tamil Nadu, Maharashtra, and Gujarat had allowed industries to function. “The administration was sympathetic, but there was no clarity,” he added.
According to him, though lockdown in Bengaluru would be in place for seven days, those industries that shutdown anticipating a total lockdown would require at least about 10 days to resume work. “Machineries have been cleaned up and they have to be reconditioned. Workers have to return to work,” he said.
Losses estimated at ₹ 5,000 crore
The lockdown in Bengaluru that shut down trade and business and has affected industrial operations could result in an overall loss to be about ₹5,000 crore over seven days, the FKCCI has estimated.
The industry body president C.R. Janardhan said that this will not only dent the turnover of businesses, but also affect the revenue collections for the government as Bengaluru is the biggest revenue earner for the exchequer in real estate, liquor, and transportation fee collection.
