Covid 19: Companies allowed to resume work post lockdown, not able to start

The central government has given a green signal to various companies from different sectors to start their operations in order to give a boost to the economy. The governments of various states have also advised the start of economic activities.

All the rules are passed but the companies aren’t able to work. The major reason being the shortage of labor and raw materials. This was revealed in a nationwide survey of the Confederation of Indian Industry (CII). About 39% of the company owners said that there was a breakage in the supply chain of the raw materials.

According to a survey conducted by the CII, 39% of the respondents in the survey admitted that there was a hurdle in starting work and there was a delay in the movement of raw materials and finished goods. 23 percent said that there was no availability of goods to start the operations. Only 15 percent of those surveyed admitted that goods were moving on time. 42 percent believed that there is a delay in giving the pass of the employees or the passes are not available. Similarly, two-thirds of those surveyed admitted that transporting employees from factory to home and from home to the factory is also a big issue.

58 percent companies have less than 25 percent employees

There are 58% of companies that have less than 25% employees to work because the labour force has gone back to their home town. Through this, CII has concluded that they are following the norms of social distancing.  It has also been noted that it is essential for the companies to bring back these employees in order to grow and make some profit. No profit often leads to a salary cut. Most of the companies surveyed admitted that the State Governments had clearly communicated the guidelines issued by the Ministry of Home Affairs on April 15 and 16 to start a business in urban and rural areas.

46 percent companies did not get permits

46 percent of the companies surveyed by CII said that they have not received a permit or are delaying the permit to start the operation. A very small chunk, of about 20% said that they got the permit easily. CII has stated that there should be a specific time frame for granting the permits. Quite a few companies said that they are operating at 25% capacity and about 10% were operating at half capacity.

Major supply chain issues

The biggest issue going on right now is regarding the supply chain management. Often, workers aren’t given the passes easily and the huge number of hurdles in the supply chain management has delayed the whole process of working of a factory. Chandrajit Banerjee says that CII survey has revealed that the enterprise permits, passes for workers, and supply chain movements are becoming the biggest hurdles in getting the industry out of lockdown. He also says that the companies shouldn’t be told to have permits because it leads to various issues. Banerjee said that workers should be given permission to travel with their vehicles on the basis of a letter issued by the company.

Only when these small glitches are resolved, the economy can actually come out of the large downfall it has undergone.