Chennai: Employers’ Federation of Southern India has sought relief measures from the Tamilnadu government, including the commencement of operation of the industries in the interest of all stakeholders.
In a letter to the State government, a copy of which was shared with the media, the federation’s president R Srikanth said, “while we appreciate that the measures taken by the government for the larger interest of the public, we would also like to place for the due consideration of the government, the impact due to stoppage of work in progress, carrying huge inventory, cost of raw materials and finished products, suspension of storage and distribution, loss of revenue generation, etc, would pose severe challenges in working capital management besides taking care of the employee’s interest in this hour of crisis.”
He urged the State government to come out with a special relief package to revive the industry. The association, representing over 750 companies having presence in textile, sugar, cement, plantation and leather, said several companies have halted production and were facing issues like piling of huge inventories, inreasing raw material cost and loss of revenue .
With no idea of whether the lockdown would be lifted after 15 April, the future for the industries is unpredictable and uncertain, EFSI said. The association suggested that the government announce relief measures to tide over the situation so that all stakeholders resume normal operations over a period of time. Some of the suggestions include extension of time limit for renewal of licenses, submission of returns under various labour enactment and extension of inspection related approvals upto 30 June, 2020.