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Cyclone Hudhud delivered such a knockout punch to the industry in Visakhapatnam, Vizianagaram and Srikakulam districts of Andhra Pradesh earlier this month that even the major units such as the Visakhapatnam steel plant, the Hindusthan shipyard and the HPCL refinery are not in a position to resume production till now. The plight of the small-scale units and the medium scale units is even worse and they are badly dependent on the Government assistance for any sort of revival.
It is estimated that in Visakhapatnam district alone 1,900 SMEs suffered badly and the loss, according to the industry sources, is in the region of Rs 1,000-1,200 crores. Power is being restored to these units at autonagar, Kancharapalem industrial estate, Peda Gantyada and Gambhiram only now and many of them are still groping in the dark.
According to Ramakrishna Narappareddy, the founder-president of the Autonagar SSI Association, almost 60 per cent of the units do not any insurance cover and even those units having such cover it is becoming difficult to get the full claim amount due to various factors. “Many of these units depend on the bigger PSU units such as the steel plant for their survival. Even the bigger units are in a mess now and it is virtually impossible for the smaller fish to survive the storm, unless the Government rescues them,” he said.
He said the industry had sought the State Government to defer payment of power bills for at least six months and at least 30 per cent rebate to SMEs on power bills in cyclone-hit areas. “The Union Government also promised a special package for the four Rayalaseema districts and the three north-coastal districts at the time of bifurcation of the State. The package should be expedited and the incentives should be extended to the existing SMEs as well and not merely to the new units. Otherwise, many of the units have no option but to down shutters,” he said.
Visakhapatnam district industries centre General Manager Lakshman said a report had been sent to the State Government and the industries department on the loss suffered by the SMEs and the Government would take a decision on the matter.
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