The Kerala State Small Industries Association has called on the State government to convene a stakeholders’ meet on labour laws in the time of a pandemic.
Industries feel that Kerala should take a cue from States such as Uttar Pradesh, Rajasthan, Orissa, Madhya Pradesh, Punjab, Gujarat, Karnataka, and Rajasthan in changing labour laws to suit the current situation.
About 50 days of lockdown to contain the virus and subsequent restrictions on production have dealt a body blow to thousands of micro, small, and medium enterprises, which is the heart of the economy, said KSSIA leaders in a communication to the Chief Minister.
There is no certainty as to when the sector will achieve normality. Loss of capital, raw material, and finished products have immobilised the sector, said M.A. Khalid, KISSIA president, on Wednesday.
What is needed at this point is substantial changes in labour laws along with financial support for the SMEs. There is a reverse flow of Malayalis from the Gulf. It will be impossible for the government to provide them jobs. At the same time, the government has envisaged drawing capital investments to the tune of ₹10 lakh crore. The government has also made its mind clear that it planned a ₹3,425-crore package for small and medium industrial units.
The sector will wholeheartedly support any initiative to revive the sector. The MSMEs account for about 40 lakh jobs from around 1,56,000 units as of now. If another 1.5 lakh small units can be launched another 40 lakh jobs can be generated over the next two years, the association said.
The government has showed its positive intentions by amending seven Acts and 10 rules to make the State more business-friendly. The government has also allowed units with investments up to ₹10 crore (outside red category) to begin operations rightaway without licence and permit provided they obtained the necessary clearances within three years.
While these orders are in place, a recent note from the Chief Minister that new units should be cleared to begin operations within a week has created confusion. The industries demanded that the confusion should be cleared, it said.
