ComMin blueprint ready for opening industries, MSME with safeguards
All eyes will be on Prime Minister Narendra Modi when he outlines various aspects that will regulate the two-week extension of the ongoing lockdown as agreed in the meeting with Chief Ministers on Saturday. The Commerce Ministry has prepared blueprint for opening up of major industries and MSME with requisite health safeguards.
Now that the two-week extension is a mere formality, people will anxiously wait for the PM’s announcement to see what sort of sectoral “opening up”, if any, is facilitated by the Government to keep the economy going. Opening up farm sectors to allow harvesting and storage of standing crops and incentivising sowing could figure in the PM’s speech. There is also speculation about limited opening up of civil aviation in some sector as well.
A day before the crucial announcement by Prime Minister Narendra Modi on the lockdown, the Union Commerce Ministry wrote to the Union Home Ministry on the need to open several industries and many business sectors with “precautions” to prevent the spread Covid-19. For lovers of liquor there is good news. The Commerce Ministry has suggested opening up of that sector too.
The Commerce Ministry has suggested opening up of industries with “single entry point for workers” and “keeping of social distancing” in work atmosphere.”
“It is felt that certain activities with reasonable safeguards should be allowed once a final decision regarding extension and nature of lockdown is taken by the central Government. These new activities are essential to improve the economic activity and provide liquidity in the hands of the people. These suggestions have been obtained on the basis of very detailed interaction of the Hon’ble CIM ( Commerce and Industries Minister Piyush Goyal) with various States and industry bodies, and the feedback,” said the letter written by Dr Guruprasad Mohapatra, Secretary, Department of Promotion of Industry and Internal Trade, Ministry of Commerce and Industry to Union Home Secretary Ajay Kumar Bhalla.
The letter follows with three page annexure of what all industries to be opened and what all precautions to be taken. Commerce Ministry suggested that Industries should be allowed to operate in shifts with 25-30 percent staff in each shift with proper social distancing, santisation methods for the staffers and premises. The Ministry also suggested that District level authorities must inspect on the working of the industries and check on the adherence of the rules to prevent the Covid-19 pandemic.
The Commerce Ministry suggested that big companies and MSMEs and export oriented units must be opened. The Ministry also said that vehicle movements would be opened up with checking and factories must be asked to transport the staffers. The opening of telecom and allied sectors, fiber cable manufacturing, heavy electrical items, compressors, steel, defence, cement, pulp, timber, glass fertilizer, agro and agro chemical, paints, dyes, automotive, gems, jewellery, special economic zones were suggested y the Ministry.
A positive interpretation of PM’s remark “Jaan bhi, jahan bhi” has already led to optimism that the second phase of the lockdown may witness graded opening up of activities in other sectors such as construction, road and industrial activities. Thw Government has already allowed fishing activities on the sea side in certain States.
The Prime Minister has already suggested specific measures for agriculture and allied sector, including the modification of Agriculture Produce Market Committee (APMC) laws to facilitate sale of farm produce. He said the crisis was an opportunity to become self-reliant and turn the nation into an economic powerhouse.
On Saturday while interacting with Chief Ministers via video conferencing in his third such meeting, Modi hinted at the need to strike a balance between saving lives and reviving economic activity. Suggestion to a phased opening of air service is also understood to have been given but health experts have apparently not approved it.
It is understood that while senior officials agree on the importance of the lockdown to save Indian lives, they want economic activity to be revived as ports are jammed with containers and major port cities such as Mumbai and Chennai are hit by the pandemic.
In the backdrop of the Prime Minister’s assertion to strike a balance between “lives and livelihood”, the Government may move towards a “smart lockdown” -with severe restrictions in affected districts, and partial lifting of restrictions in unaffected districts, along with the opening up of some sectors to meet the economic challenge.
The Government may also be considering demarcating the country into three zones - red, yellow and green - depending on the scale of the Covid-19 outbreak.
Maharashtra Chief Minister Uddhav Thackeray pointed out the challenges migrant workers were facing as industries did not have the money to provide for their wages and shelter interminably. He wanted the Centre’s assistance to facilitate the harvest of crops and grain procurement, relaxing of the FRBM (Fiscal Responsibility and Budget Management) Act cap of 3 per cent fiscal deficit to 4-5 per cent, release of MNREGA funds to pay wages to workers, and also their share of GST compensation.
The construction of highways may be also exempted from the total shutdown. According to sources, areas which are away from the urban centres and where there have been minimal to zero Covid-19 cases may be exempted from the lockdown and construction activity of roads should be allowed as it is essential for any economy.
It is believed that the Maharashtra Government may allow the construction of its marquee project -- Maharashtra Samruddhi Mahamarg, an expressway connecting Mumbai and Nagpur. The expressway once constructed would be 701 kilometres long and will include eight lanes - four on each side.
The Ministry of Road Transport and Highways and the National Highways Authority of India (NHAI) are also in discussions with various States to evaluate the situation on the ground. According to an official, some States and districts had sought permission to start road construction work where the density of population is low. They had also said the guidelines of social distancing would be followed to commence the projects. It is also learnt that districts and States will not be in a position to sustain the expenditure on the stay of migrant labour so they could instead be used for construction activity.