The Utkal Chamber of Commerce and Industry (UCCI) has welcomed the extension of the lockdown till April 30 to combat the rapidly-spreading COVID-19 pandemic, but at the same time, in a letter to Chief Minister Naveen Patnaik, has voiced concerns about the State’s economy and said that some sectors need special attention for their survival.
The UCCI, an apex chamber representing major, medium, small, minor industries as well as trade and commerce, said the major issue before all businesses during the lockdown is logistics, without which no one can plan, execute manufacturing or provide services.
“Seamless transportation is a necessity, for which instructions, across the line, should be issued for allowing transportation activities because overenthusiastic villagers at many places are causing trouble,” UCCI president Ramesh Mahapatra said in the letter to the CM.
He said major industries are facing the problem of transporting raw materials to factories and extraction of finished goods.
Similarly, acute labour shortages in factories, warehouses, transport sector and distribution have broken the supply chain to a great extent, Mahapatra said.
This is a grey area which needs to be handled after the lockdown is lifted; but even now, certain allowable activities should be continued, he said.
With the closure of most of the establishments, payment of wages to employees has become difficult since the lockdown measures have severely impacted cash flows; and many establishments might close down their businesses if they are unable to comply with the labour department directive. “We request the State Government to look into the directive again as the lockdown has been extended,” he said, adding, “We sincerely appeal that the wages should be paid at a reduced rate for at least six months.”
The UCCI also urged the Government to waive the demand charges and also the electricity duties for the lockdown period and claimed that similar steps have been taken in Punjab, Rajasthan and Gujarat.
“To induce cash flow into the business, we propose to provide loan against GST paid by the business at 3% rate of interest,” Mahapatra said.
The hotel and tourism sector is the worst-hit, he said, adding that suitable revival packages would bring back the industry on a survival path.
Therefore, excise fees, levies, taxes, and power and water charges should be waived for the tourism, travel and hospitality industry for the April-June 2020 quarter, he said.
Prawn farming has also suffered a major blow because of the closure or partial running of processing plants, he said, adding that a suitable stimulus package to the fishing community, fish farmers and processors may be considered.