Rajesh Kumar, a 55-year-old entrepreneur, who had arrange an auto part manufacturing unit in Peenya Industrial Area (PIA) in North Bengaluru, needed to shut it down in August 2022 following extreme loss in enterprise, particularly after COVID-19 pandemic.
Mr. Kumar, who had arrange his firm a decade in the past, was profitable in working the enterprise till points pertaining to the rising prices of uncooked supplies through the pandemic compelled him to close down the unit, which led to lack of jobs to 85 workers.
“Steep rise in prices of raw materials over the past two years has severely affected us as well as many other Micro, Small, and Medium Enterprises (MSME) in the PIA. My company had long-term contracts with big companies without a price hike clause. The price rise affected my manufacturing unit, and it became difficult to sustain, especially after the pandemic. I had no option but to close down the business,” Mr. Kumar mentioned.
PIA includes 1000’s of small and micro enterprises that make use of lakhs of staff. Manjunath. H., President of PIA, mentioned round 20% of firms based mostly within the industrial space have shut down after the pandemic.
“According to our internal report, we have seen that 20% of MSMEs in our industrial area have shut down. The main reasons MSMEs are shutting down are increased raw material rates and industries not being able to repay bank loans. During the pandemic, most industries didn’t run due to the lockdowns. After the industries shut down, thousands of employees have lost their jobs and gone back to their hometowns,” Mr. Manjunath added.
The Peenya Industrial Area is a vital infrastructure because it manufactures virtually 50% of machine instruments produced in your complete nation and accounts for over 60% of Karnataka’s whole manufacturing of machine instruments.
“The COVID-19 pandemic further exposed the vulnerability of the MSME sector in Peenya. During the pandemic, our industrial area was the worst hit on account of the demand and supply shocks caused and the measures taken later to curb the spread of infection. The sector is still struggling to survive and recover from the pandemic-induced issues, while the post-pandemic issues also led many MSMEs to shut down,” Mr. Manjunath identified.
A file photograph of a labourer working at one of many manufacturing models within the Peenya Industrial Area in Bengaluru.
Civic infrastructure deficiencies
Once thought of to be southeast Asia’s oldest and largest industrial space, Peenya has additionally been grappling with civic mismanagement points in the previous couple of years. Bad roads, strong waste administration points, poor underground drainage methods, and a polluted lake and groundwater, moreover being poorly lit and crippled by irregular energy and water provide, are widespread complaints.
Mr. Manjunath complained that waste was typically not picked up with civic staff claiming that it’s industrial waste.
“Garbage lies in heaps on roads; the drains are clogged, and sewage overflows. Apart from this, sewage is also getting mixed with the drinking water. The best example is the sole water body in Peenya, the Shivapura lake; if you look at the lake, it is completely destroyed. The local authorities have done nothing to prevent encroachment or letting sewage into it. The area around the lake stinks and it is unbearable,” Mr. Manjunath mentioned.
Prathap Raj, an worker in one of many industries, mentioned the native representatives will not be within the space. “No elected representatives and civic officials are interested in improving infrastructure here as they don’t get many votes from an industrial area, while officials just do not care for our repeated complaints,” he alleged.
PIA members mentioned industries within the space contribute crores of rupees as taxes, however the infrastructure supplied to them is poor.
In protest towards the steep rise in costs of uncooked supplies, companies in Peenya noticed a bandh in December 2021.
| Photo Credit:
Okay. MURALI KUMAR
PIA awaits township standing
The space remains to be awaiting a township standing, virtually three years after the B.S. Yediyurappa-led authorities proposed to arrange the required infrastructure for the township backed by a budgetary allocation of ₹100 crore.
“After decades of our constant follow-ups came the breakthrough in the form of a budgetary allocation of ₹100 crore and the proposal for the township in the last budget. However, it has still not been approved by the government. We are continuously meeting the Chief Minister and the file is in his office, but not yet approved. The Electronics City Industrial Association came much after Peenya but became a township long ago and Peenya is still waiting for it,” mentioned Mr. Manjunath.
The Karnataka Small Industries Development Corporation (KSIDC) had been given the accountability of getting ready an in depth venture report (DPR), and based on a commerce consultant from the Peenya Industries Association, the DPR is prepared, and cupboard nod is pending.
“In 2022, there was a high-level meeting involving representatives from the government and all departments concerned and office-bearers of PIA to discuss the matter again. After that, we have constantly been following it up. Allotting a township status to Peenya and constituting a statutory authority is not a big task for the Government. It can do it in a month itself. Our only request to the government is not to delay any further,” he added.
“As Asia’s largest industrial zone, Peenya Industrial Area has a pre-eminent status, and the government should expedite the formalities involved in converting it into a township authority, as this would give it a fair amount of autonomy which would go a long way in improving the maintaining the amenities and industrial infrastructure. As per the 74th amendment to the Constitution, once given township authority status, Peenya Industrial Area would be excluded from the jurisdiction of BBMP, which would inject much-needed freedom for the industries themselves to maintain the infrastructure on their own,” Mr. Manjunath defined.
