Small, medium enterprises in shambles, seek state aid
About 90 per cent of 600 SMEs suffered heavily
By : DC Correspondent
Update: 2014-10-16 05:23 GMT
Visakhapatnam: While PSUs can get aid from the Union government to recover losses, it's an irreparable loss that cyclone Hudhud caused to small and medium scale industries in Vizag. These units, mostly in Autonagar -industrial area, have been suffering huge losses since 2011 owing power outages. And, now as there is no power at all, several units suffered major damages.
There are around 600 mic-ro, small and medium scale industries in the district and they all put together make a turnover of '200 crore per year. About 20,000 workers depend on these units, directly or indirectly.Small and medium scale industrialists felt that they had never witnessed such a calamity till now and it is impossible for them to revive until government announces assistance and bailout package.
In 2011, owing to Sakulaj-anala Samme in Telangana, when the separate state movement was at its peak, there was power holiday for almost five days in a week. Though the power holiday was restricted to three to two days in a week, load relief at peak hours has dampened their spirits and were running at only 40 per cent production and a wafer thin profit which was spent for workers with fear of losing them.
The Autonagar industrial estate is in shambles with only walls remaining, while roof slabs collapsed, and machinery and other equipment have been damaged totally. They are also seeking assistance to buy new machinery. “Hudhud has left a trail of destruction where 90 per cent of industries suffered heavily. It is difficult for some of the organisations to recover from this damage and also for some industries, it will take at least three to six months to restart their operations. In view, the insurance companies must have liberal attitude and also state and Centre must support the industry in this situation.
The Central and State governments can reschedule the existing loan in consultation with the RBI and give clear instructions to bankers to defer the payment of installments Also, local bodies must support and waive off municipal taxes and concessions s should be given in power tariffs,” said CII Vizag chapter former chairman, G. Sambasiva Rao.