Ranchi: around 1,600 industrial units in Jharkhand have folded since the Covid-19 pandemic hit the country in March last year, the state government said.
The Government of Hemant Soren, who has held a Roadshow of Investment in New Delhi and Mumbai for the past two years in an effort to attract large ticket investments in diverse sectors, has no record of ill units that are on the threshold closure.
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This revelation came on Tuesday on the second day of the Jharkhand assembly winter session.
On Tuesday, Poriyahat MLA Pradeep Yadav questioned the government whether plans to revive the sick industrial units in the state facing closure.
Answering on behalf of the government, Minister of Water Resources Mithilesh Thakur said the industry department was on track to form an asset restructuring company (ARC).
“Arc will identify the affected industry and on the threshold and work towards their resurrection by giving them subsidies, incentives and tax holidays for electricity, water and other things,” said Thakur to the house.
When YADAV emphasizes whether the country has a note of the sick unit, Thakur said, “No.” According to sources in the Jharkhand Small Industry Association, micro, small and medium enterprises (MSMEs) are bulk folded units during a pandemic.
“After the pandemic hit and the lock began, MSMEs struggled to fulfill their delivery on time because the workforce returned to the house and the supply line of thinning raw materials.
The market for finished goods is also evaporated due to economic decline.
On the other hand, operational costs, which include electricity.
Taxes and water, remain like that.
The entrepreneurs, who ran in the capital were low, sustained almost three to four months before they hit the rock bottom, “said a city-based entrepreneur with anonymity requirements.
Yadav warns the government.
“The government had previously made policies after policies, toured the country and abroad and held a Mega event but did nothing to help local units.
This government must be proactive in overcoming local industry concerns or, the Jharkhand industry climate will not change,” he said.