Impact of COVID-19 on Economy & Industry Dr. T K Chand, Industry Expert & Former Chairman of Nalco
DR.TAPAN KUMAR CHAND, INDUSTRY EXPERT, FORMER CMD, NALCO, CHAIRMAN ALUMINIUM ASSOCIATION OF INDIA,
EX-CHAIRMAN CONFEDERATION OF INDIAN INDUSTRY, STATE COUNCIL(CII)
BHUBANESWAR: In an exclusive discussion on Impact of COVID-19 on Economy & Industry Dr. T K Chand, Industry Expert & Former Chairman of Nalco told that while the impact of COVID_19 was minimal on large industry & Mines, it’s impact on MSME is disastrous. Since more than 90% of MSMEs are micro industries, these are inherently weak and lock out impact is quite damaging. So these units need hand holding to come back. Large number of MSMEs are holding finished product inventory & need marketing support to convert it to cash.
NAlco: For sustainability of MSMEs in manufacturing areas Dr Chand suggested a cashless model under which inputs will be given by Mother plant & finished product will be taken back for marketing through appropriate binding agreements. This will be a win-win situation for both.Realisation of Mother plant will increase & MSMEs will get assured return.
In service areas of trade, entertainment, tourism etc there is likely that difficulty may continue for sometime & their problems need study for mitigation measures.
He said MSMEs may be given interest free advance to be recovered in installment for payment of wages to worker for lockout period & upto six month after lock out. This will bring back the labor to work & increase their purchasing power & consequent demand in market.
Agriculture contributes 17%of our GDP and there may not be much impact as this year as per IMD there will be normal monsoon & activities have started in time despite COVID-19