Facing massive losses estimating to be around Rs 25,000-30,000 crores due to blockade of rail movement in Punjab, the state industries have urged the State Government to resolve the issue and save the Punjab industry from huge loss and resultant economic breakdown and labour unrest.
“Punjab industry is suffering heavily due to current farmers’ agitation… A rough estimate of loss to industries due to blockade of rail movement is estimated to be around Rs 25,000-30,000 crore,” said PHD Chamber of Commerce and Industry (Punjab State Chapter) chairman Karan Gilhotra on Tuesday.
“The actual loss will be more than that as cancellation of export orders and corresponding loss can only be ascertained at a later stage,” he added.
He said that the hosiery industry, which is well established in the State, has reported a loss of around Rs 8000 crore due to shortage in supply of raw material.
Gilhotra maintained that the state’s industry was on the path of revival after the lockdown due to COVID-19, “however, due to current agitation by the farmers in the State and resultant rail blockade, the functioning of the industry in the State has been seriously affected”.
“Due to non-movement of containers and rail goods traffic, the supply chain of the raw material and finished goods is affected badly since last one month,” he said.
He added that the power plants are also facing acute shortage of coal forcing them to impose power cuts on industry, and as a result, “the prices of raw materials like pig irons and fuel prices have increased many times and stocks are getting depleted”.
Adding further, he said that the movement of containers for import-export operations is highly disturbed and the import-export orders and payments are getting cancelled. “Therefore, we urge the Government to resolve the issue and save the Punjab industry from huge loss and resultant economic breakdown and labour unrest,” he added.