Industrial units seek relaxing spares supply

Telangana Industry association for opening of ancillary unit

By Author  |  Published: 11th May 2020  12:24 am
Industrial units
The industry has also sought support to bring back migrant labour into the workforce as production has resumed

Hyderabad: Even as industrial units have started operations from last week with minimum staff, many feel they do not have the support of the ancillary units, which are part of the supply chain. They are also looking for consumables and spares for a glitch-free production. The industries have now given a representation to the police asking them to allow the functioning of these units as well.

“The machinery has been idle for over 40 days. They need some spares and lubrication which is important for the safety of the factory,” said M Prabhakar Rao, convenor, All India Forum for Small and Medium Industries. Most of the spares dealers are located at Ranigunj and are closed as of now. This apart, various industrial clusters in areas like Balanagar, Jeedimetla, Cherlapally, Mallapur, Nacharam and Gandhi Nagar among others are served by spares dealers in that respective areas. These too are not operational as yet due to the continuing restrictions. Among others, the industries need belts, gears, grease, oil, switchgear, wires, rotating blades, bearings and a host of others. “We use different machinery coming from Tamil Nadu, Delhi and Gujarat. They use only respective spares and generic ones will not be compatible,” said K Sudhir Reddy, president, Telangana Industrialists Federation.

Ancillary units
Many industries have ancillary industries. While they are smaller in scale, they are part of the supply chain. These units depend on the job works they get from other industries. To avoid logistics, these ancillary units use three-wheelers to get the materials from the job-giving units, execute the orders and deliver the finished products back to the units or pass on the same to other players for further value addition. These services too are not available and as a result the companies are not able to use the relaxations given to them to start operations with one-third of the staff to an optimum, Reddy said.

Fixed costs
While the production remains low due to only a third of the staff available at the units, the average cost of production is higher. “Few people are working but we have to use the same resources as we would use for a full shift. However, there is little scope to pass on the increase in overhead costs to the customers,” said Prabhakar Rao. Industrialists under the aegis of TIF had recently met DGP K Mahender Reddy and gave a representation seeking opening of industry related shops supplying spares, tools, hardware, electrical in Ranjigunj and other industrial areas. They also sought support in bringing back the migrant labour wiling to come back as well as those staying back. They also asked permission to industrial workers to travel by showing their identity cards instead of seeking special permission from the police.

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