Coimbatore: After the state government granted permission to reopen all shops, including stationary, footwear, electrical, electronic and hardware from 9am to 7pm from Monday, the city is getting ready for a march towards normalcy.Permission has been granted to operate export and auxiliary units with full workforce and other industries with 33% workforce.
On the first day, business is expected to be dull as most of the traders and industrialists would be busy with maintenance work because the premises would be reopened after two months.J James, district president of Tamil Nadu Association of Cottage and Micro Enterprises (Tact), said that industrialists using machines like computer numeric control (CNC) machines would take at least one week to 10 days to repair them.
“We have to shell out at least Rs 8,000 to Rs 10,000 to repair machines, apart from reinvesting in the business.
Many industrialists, especially micro industry owners, would have exhausted most of their savings during the lockdown and will be in desperate need of fund,” he said.Industries would require support from banks to resume operations, said Codissia president M V Ramesh Babu.
“At this crucial time, bankers should come forward to lend without looking at last year’s balance and transactions.
If not, many industrialists would approach private companies and fall in their trap.”As many as 30% of cottage and micro industry owners might leave the field due to loss while others might pledge properties and jewellery to arrange money, said C Sivakumar, president of Coimbatore Tirupur Districts Micro and Cottage Entrepreneurs Association (Cotma).
“Due to lack of support from bankers, industrialists will approach private finance companies that levy 22 to 28% interest.
Several of them have already taken loans from them and are struggling to pay dues,” he said.Industrialists are also worried about rising cost of raw materials, buyers not accepting price revision and vaccination for workers, said Babu.
“While industrialists have been making transportation arrangements to bring back workers, many of the workers in other districts have decided to come on their own.
We expect the government to allow us operate with full workforce from next week.”Shop owners and traders are expecting their business to pick up in another week.