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MSMEs seek exemption from lockdown restrictions in Dakshina Kannada

Our Bureau Mangaluru | Updated on July 14, 2020 Published on July 14, 2020

A closure will not only impact production but also cause loss of jobs

The Mangaluru-based Kanara Industries Association (KIA), previously known as Kanara Small Industries Association, has urged the Dakshina Kannada district administration to exempt MSMEs (micro, small and medium enterprises) in the region from the lockdown restrictions. The district will go for a week-long lockdown from July 16.

Ajith Kamath, President of KIA, said MSMEs in the region have slowly resumed their operations after the Centre relaxed lockdown restrictions. Most of the MSMEs are now operating at a bare minimum of 40 per cent of their total capacity and are slowly gaining momentum.

Stating that the industrial sector from the region contributes around 26 per cent to the GSDP of Karnataka, he requested the district administration to grant exemption to the industries from the lockdown restrictions.

A closure at this stage will not only impact production but also cause loss of jobs. It will also cut the GST collections, hampering the revival of the State economy.

He said it will also cause reverse migration of workers who have just started coming back to the district.

“In this regard, we are confident that the administration will follow examples from other places such as Chennai, Pune and Delhi where lockdown was imposed but industries were allowed to operate with adequate safeguards, as the imposition of lockdown on the industries will severely impact industrial production and curb attempts to restore normalcy,” he said.

Urging the district administration to exempt industries from the lockdown, he requested it to consult the industry stakeholders while formulating guidelines on lockdown.

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Published on July 14, 2020
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