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SEPTEMBER - 2019
Reviewing the After-effects of Economic
Slowdown in Peenya
authorities. If one of the issues is slackness in
the market, another is government policy
which needs to address the problems and
concerns on the ground. Overall, orders are
hit by around 40-50 per cent, and many
industries are virtually facing closure.
The need of the hour is for the Government –
Srinivas Asranna both at the State as well as at the Centre – is to
handhold the micro and small scale industrial
Stay calm. Don't get blown off by the sector at this critical juncture and empower
slowdown. The darkest hour is before dawn.
Peenya Industrial Area can yet, return with a them to face the crisis by a targeted and
bang: President, PIA increased focus on improving industrial
infrastructure in particular. At the ground
By nature, I am an eternal optimist, but I have level, there has to be a concerted effort to
to confess that the down-in-the-doldrums improve the ease of doing business, relax
feelings of my various entrepreneur-friends in inspection by ESI/PF authorities, simplify
Peenya, who declare that “there has never been guidelines related to renewal of factory license,
a more crazy experience in our industrial life”, and further relax NPA norms, among other
has left me shaken and stirred. The economic such initiatives. In this context, timing is the
slowdown in Peenya with special reference to key for many industry experts aver that there
the auto sector, is virtually in-your-face, and is little hope of a turnaround at least for the
there is no way one can brush it off or ignore it. next four to six months.
Many experts are of the view that the Here's an anecdotal evidence of the adverse
automobile sector slowdown is mostly a by- impact felt in Peenya. Now many of the
product of the shift from Bharat Stage (BS) 4 industries source their products from within
emission standards to BS 6 that is mandated the industrial complex itself. One such player
by the Central Government from April 2020. who is into wholesale and retail of critical
parts for big machinery used in Peenya
An accompanying paranoia was the move to
have electric vehicles (EV) as the norm for two- industries has seen his business fall by
wheelers in five years. Of course we all accept around 25 per cent, since July. Because of this
and realize that electric vehicles (EVs) are the crisis, he is not able to supply materials to
way forward, but you need infrastructure for industries. The company supplies the main
it. A better way would have been to push the BS parts for machines without which they will not
6 vehicles from 2025, offering it as a premium work and nobody is coming forward to
product along with EVs. What was the hurry to purchase them.
bring in BS 6 next year, barely two years after
BS 4, is a legitimate question that defines the Taking all factors into considerations, I would
quandary faced by people in the auto sector. still be true to my optimistic nature and say
that all is not lost yet. It is a fact that the crisis
Review findings by PIA is widely prevalent in Peenya, but the situation
is not that bad as is being portrayed
A preliminary assessment by Team PIA shows everywhere. Only some sectors and not all, are
that overall business in Peenya itself is down affected and if with the right kind of timely,
by about 40 per cent on an average. adequate and hassle-free support from the
Government both at the Centre as well as the
The review also revealed that Peenya has State, Peenya can yet regain its glory in style –
mainly micro and small industries, which are to the sound of humming machines in fast-
labour-intensive. We at PIA sent requests to the paced factory shop-floors. We are not going
State and Central governments. But for down – and we will not rest till we ace this
reasons unknown to us, whatever data we game.
have given is not taken seriously by
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