Public sector undertakings (PSUs) and the traditional industries sector that had to pay a heavy economic cost for the pandemic outbreak will need a substantial financial assistance to emerge from the loss.
Out of the 40 industrial units under the Industries Department, the Travancore Titanium Products, Kerala Minerals and Metals Limited, Travancore Cochin Chemicals, and Malabar Cements have revived production after a lull with Central nod, but the combined production loss of the sector following the lockdown has been pegged at about ₹400 crore.
Industries Department sources told The Hindu that as per rough estimates, the turnover of the units had slipped from ₹1,600 crore to ₹1,200 crore. Following the curbs on transportation, the units could neither move their finished products nor source raw materials to revive production. Even the units that have restored production will have to overcome major impediments for restoring normalcy.
Extended curbs
The current crisis does not offer any clue on lifting the lockdown and the restrictions are likely to be in place for at least a fortnight. All units have incurred a major production loss. The virus spread and the resultant lockdown have also stymied the government’s attempts to revive the PSUs from the red through various bailout packages.
The plight of traditional industries workers, mainly coir, cashew, handloom, fisheries and bamboo, artisans and such others, is much more pitiable.
The lockdown has expropriated their spending capacity. But for the government support by providing free ration and essentials, a majority of them, especially women, are finding the going tough.
Daunting task
Regaining the lost market is a daunting task, especially for coir, cashew, and handloom sectors that had been surviving on government support.
A scheme introduced by the government for producing school uniforms came as a major relief for the handloom workers who were reeling under a crisis.
The government would have to extend a financial assistance of at least ₹400 crore to the PSUs in the first quarter of the current financial year to restore normalcy.
An income support scheme has also become imperative for the workers in the traditional industries sector. Such issues are likely to be discussed in the weeks ahead, the sources said.
