Industrial black out in Punjab
FICO seeks immediate solution from the government
Ludhiana: The power crisis in Punjab elevated on 1st July when industries with Large Supply Power Connection located in the Punjab’s Central Zone comprising Ludhiana, Mandi Gobindgarh, Khanna, Amloh and Sirhind and North Zone consisting of Jalandhar, Phagwara and Hoshiarpur were asked for compulsory shut down their units for 48 hours, which later turned out to be weekly off varying from 3 to 4 days per week. Manufacturing units in these areas constitute 90% of the State’s Industry. There is a situation of panic amongst the industrialists. Federation of Industrial & Commercial Organization (FICO) seeks immediate solution from the Government.
Gurmeet Singh Kular President FICO said it is an industrial Black Out in the state, as government has failed to live up to its promises. The government has put Punjab at least 15 years back, as the similar was the situation was seen back in 2006. The government has ordered to shut down the large industry, which is either provides the raw material to the small industries, or the large industry consumes the products manufactured by the small industries. Either way, closure of large industries is directly hitting hard the vulnerable small industries who also needs to shut their operation due to non-operating of the large anchor units. This is mere Industrial Black Out in Punjab. if the immediate solution is not provided, than the loss will be uncontrollable.
Vipan Mittal Vice Chairman FICO said that the situation is worse in the textile & hosiery sector. These weekly off’s shaken the seasonal hosiery industry who have to honour commitments made to both local and international clients. Working amid such uncertainty is causing huge financial and reputational losses. Now as the international markets are opening up the buyers, the exports orders are being placed with extreme tight schedules, with the factories almost non-functional the delayed shipments are to be shipped by air at our cost. So, either the factories operate on generators incurring a daily expense of lacs or send the delayed goods by air at our cost. It is the manufacturer who is hit the most. Immediate solution needs to be provided otherwise the Covid hit Industrial sector might not be able to stand up again.
Baldev Singh Amar Vice President FICO said that the It is government’s complete failure for the industrialists in Punjab. repeated weekly offs are only worsening the situation, large units who manufactures the raw material are non-operational, the entire supply chain system is broken. Manufacturers are apprehending losing orders and delay in meeting export commitments, a huge loss to the industry. If the problem is not resolved at the earliest, then the condition will be un-imageable.
Gagnish Singh Khurana Head FICO’s Agricultural Implements Division said that the due to non-operating there is delay in production which not only results just in cancellation of orders, but the reputation is at the stake for the exports. Even for the India market suppliers, as the crisis is confined to Punjab only, it is difficult to explain to the buyers of other states that how bad is the situation here. He said government really needs to pull up something extra-ordinary and normalize the things for industry in Punjab.