Covid-19: Pune industrial sector expect 37% business turnover in next quarter

Industries in Pune are expecting a 37 per cent of business turnover in the next quarter (July-August-September 2020) as compared to the same quarter in 2019, according to a survey conducted by the Mahratta Chamber of Commerce Industries and Agriculture (MCCIA).

“I am certain that, with further unlocking, this number will progressively increase upward from 37 per cent,” Prashant Girbane, Director General, MCCIA, told BusinessLine.

This is the third survey conducted by the MCCIA and the first after Lockdown-1. Over 125 participants from Pune district participated in this survey. Pune district has more than 1.3 lakh registered MSMEs and 650-700 large scale units. Together they employ 17 lakh employees of which a quarter work in the IT/ITEs sector.

The surveyed companies are expecting a 25 per cent of business turnover in the quarter (April-May-June 2020) as compared to the same quarter in 2019.

The survey found that 80 per cent of applicants did not apply for the Emergency Credit Line Guarantee Scheme (ECLGS) and 18 per cent of those who applied have not yet received the credit. Two per cent applied and received additional credit. That makes it only 10 per cent of those who applied got the credit so far, added Girbane.

“The reasons for not receiving credit would be a mix of both incomplete documentation and delays from banks or work in progress,” he said.

About 56 per cent of participant companies in the survey were from the manufacturing domain while 26 per cent from services and the rest that involved both manufacturing and services.

The surveyed companies said that on an average, 24 per cent of their labour is from outside Maharashtra and, on average, 31 per cent is from the State but from outside Pune district. A total of 19 per cent companies said they are not facing challenges when it comes to labour while 50 per cent said they are facing “moderate challenges”. About 22 per cent faced “severe” labour challenges and 9 per cent “ very severe” challenges.

As per the latest update from the tweet of the Union Finance Minister the total amount sanctioned by PSBs and private banks is close to ₹75,000 crore. However, Maharashtra accounts for only ₹4,150 crore. That makes it 5.5 per cent of total sanctioned. This is far lower than Maharashtra’s leadership with 16 per cent share in India’s GDP, said Girbane.