Several industries and business establishments both in Vizianagaram and Srikakulam districts are worried about payment of salaries, repayment of loans to banks scheduled for the first week of May.
Many industries could not pay salaries to the staff and wages to workers in the first week of April, leading to agitations in places like Kothavalasa industrial zone of Vizianagaram district. Steel Exchange of India-Lakkavarapukota employees have been agitating for salaries for the last few days. Controlling them during lockdown period has become a tough task for the Police Department. It has deployed additional forces at the company. The police anticipated more such agitations in the next few days as managements of several companies are reportedly not in a position to clear their financial commitments including salaries and bank loans.
As many a 43 major industries, including jute, sugar, steel, and ferro alloys are located in Vizianagaram district. Srikakulam has more than 50 industries including pharmaceutical units. Except, pharma companies, other industries are facing deep financial crisis due to the impact of lockdown.
Business establishments, including textile shops in Vizianagaram, too are facing a similar situation. The rents of the shops rang from ₹30,000 to ₹3 lakh per month. They have also other commitments like power bills and salaries of workers.
Waiver sought
Vizianagaram Chamber of Commerce president-elect Kapuganti Prakash has urged the government to waive the interest on loans to all industries and business establishments. "Temporary moratorium on loans for three months is a small favour. All the managements needed to be given breathing time to fulfill their financial commitments. The government should not insist on payment of employers' contribution for Provident Fund at least for three months," says Mr. Prakash while speaking to The Hindu.
INTUC State general secretary Mantri Rajasekhar has sought direct financial assistance from the government for employees and workers. "Revival of economic activity will take at least six months. Against this background, the government should come to the rescue of employees and workers. It should also issue guidelines for industries and business establishments with regard to payment of wages and salaries. They should not be allowed to cut salaries, citing their financial distress as a reason since its impact more on employees' families," he adds.
