India File

Paralysis in Maharashtra

Radheshyam Yadav | Updated on June 30, 2020 Published on June 30, 2020

Pune district has over 1.3 lakh registered MSMEs and 650-700 large-scale units. Together, they employ 17 lakh people, a quarter of them in the IT/ITeS sector.

The Pune region, one of India’s largest auto hubs, houses Tata Motors, Mahindra & Mahindra and Bajaj Auto, apart from international majors such as Volkswagen and Mercedes.

The industrial sector is facing a severe crisis owing to the lockdown. “As per the latest update from the tweet of the Finance Minister, the total amount sanctioned by PSBs and private banks is close to ₹75,000 crore (under the ₹3-lakh crore credit guarantee scheme). However, Maharashtra accounts for only ₹4,150 crore. That makes it 5.5 per cent of the total sanctioned. This is far lower than Maharashtra’s leadership with 16 per cent share in India’s GDP”, says Prashant Girbane, Director-General, Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA). The survey conducted by MCCIA in Pune district found that under the Emergency Credit Line Guarantee Scheme (ECLGS), 80 per cent did not apply and 18 per cent applied but have not yet received credit. Only 10 per cent of those who applied have received credit so far.

The Pimpri Chinchwad Small Scale Industries Association (PCSSIA) President, Sandeep Belsare, says the original equipment manufacturers (OEM) have stopped work, affecting 12,000 MSMEs in the auto sector. With migrant labourers going back to their home States, the industrial sector is facing labour shortage. The majority of the units are functioning at half capacity, adds Belsare.

MSMEs account for over 80 per cent of the total employment in Maharashtra, according to the State government’s latest industrial policy. More than three million MSMEs form the backbone of Maharashtra’s economy, accounting for about 40 per cent of exports.

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Published on June 30, 2020
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