Meeting of executive of wire drawing units held in Ludhiana 

Ludhiana: Today a meeting of executive of wire drawing units held in Ludhiana to discuss the impact of corona crisis on Industry. Around 200 wire drawing units of Ludhiana are badly impacted due to this pandemic. 

The major issue with the industry is delay of payments, lack of demand, labour scarcity, unavailability of raw material & new terms with buyers and sellers. 

The wirerod is the main raw material for wire drawing units and wire is used for making all kind of fasteners, bicycle parts, hardware, agriculture and all kind of products. 

The wirerod mills refused to give the material on credit and told the wire drawing units to deposit the payments in advance for getting the deliveries, earlier the same mills were supplying the material on credit upto 40 days. 

The major decision taken in the meeting is to curtail the delay of payments. It was decided that all customers of wire will have to deposit the payments of before lockdown period to wire drawing units on or before 18th of June. The wire drawing industry is paying the interest to the banks since last three months. So as the lockdown was opened from 18th of May the customers of wire will have to pay the interest of 2% from 18th May till the receipt of payment. In case the customers won’t pay the payments before 18th June, on the request of the affected units their names will be circulated among other wire drawing units. If any customer delays the payment of any wire drawing unit no wire drawing unit will supply the material to such units.  

It is decided that no wire drawing unit will supply the material on credit to any customer. 

It was further decided that as the prices of conversion increased to 40% due to low production and high expenditures the wire drawing units will charge the minimum drawing rate of 3000 Rs per ton.  For the annealing material the units will charge 12000 Rs per ton.
 
FOPSIA will setup free consultation office of delayed payments to help the members for recovery of their payments from customers. 

The other decision taken by the units is not to swap the workers of other wire drawing units. Every unit will certify from the worker the reason to leave the previous job. 

The wire drawing units also decided to take the advantage of NSIC policy for getting Raw Material Assistance scheme for getting the material from the wire rod mills.