Industries in Bengaluru have been exempted from the seven-day lockdown imposed in Bengaluru Urban and Rural districts starting July 14 night.
A day after industry bodies cautioned the state government against a total lockdown paralysing the economy and impacting industrial production, the state government relaxed the lockdown norms.
The department of commerce and industries has issued guidelines that allow the industries in the industrial estates to operate. The districts of Bengaluru Urban, Rural, Kolar, Ramanagara, Chikballapur and Tumkur will be considered as a single one unit to facilitate movement of people [employees] from Bengaluru and vice-versa. All the employees working in these units will be allowed to travel with a valid identity card issued by their company.
The government, in its order dated July 14, has listed the various sectors that will be allowed to operate and that includes both government and private industrial establishments outside the containment zones: "All production units that require continuous process and their supply chain, food processing units, manufacturing of essential goods including drugs, pharmaceuticals, medical devices and oxygen, their raw material and intermediaries, manufacturing of packaging material, units with access control in special economic zones, export-oriented units, and industrial township adhering to the national directives for COVID-19 management, animal feed manufacturing units and their supply chain, milk and milk products processing units, hatcheries and poultries, and manufacturing of fertilisers, seeds and pesticide".
Soon after the government announced re-imposition of the lockdown in Bengaluru, the industry bodies like FKCCI, KASSIA and PIA had appealed to the chief minister to exempt the industries from the lockdown. "In Karnataka, the industries have just started functioning after the 54-day lockdown. Re-imposing of the lockdown will paralyse the state economy as industrial production will be affected. The industrial sector contributes 26 per cent of the GSDP. Closure of industries at this stage will not only impact production and hit the jobs but will also impact state GST collections," said FKCCI president C. R. Janardhana.
According to the industry experts, Bengaluru contributes to around 70 per cent of the gross state domestic product (GSDP). Companies in aerospace, agri business, food processing, aero space components, machine tools, pharmaceuticals, garments and automobiles operating in the city are engaged in exports. Many industries in Bengaluru, especially in the manufacturing sector, have slowly started operating second shift in the last few days to fulfil export orders. At this stage, another lockdown would only destroy the morale of the managements and workers and cause unbearable losses too.
"COVID is rampant in Maharashtra, Tamil Nadu, Gujarat, but none have imposed lockdown on industries. Even in cities like Pune, Chennai and Delhi, it is only a social lockdown and industries are being allowed to operate with adequate safeguards. Karnataka is in fifth position in coronavirus cases and the industries can be allowed to operate by adhering norms prescribed as per MHA guidelines," said the appeal made by the industries.
The industry also warned that the lockdown would impact the financial institutions which have disbursed around 65 per cent of the loans sanctioned as a part of the Rs 3 lakh crore emergency package announced by the finance minister.
