Apr 24, 2020
MSME, an important industry organization representing micro, small and medium enterprises has advised its members not to rush into opening or restarting their units and facilities as tough disciplinary measures include an FIR against the CEO if a Covid-19 positive case is found on their complex.
MSME, an important industry organization representing micro, small and medium enterprises has advised its members not to rush into opening or restarting their units and facilities as tough disciplinary measures include an FIR against the CEO if a Covid-19 positive case is found on their complex. If disrupted supply chains, erratic movement of goods and severe cash crunch were not enough, entrepreneurs have to brace for threat of imprisonment if any coronavirus-related case comes up in their factories, MSME spokesperson said.
“The prosecution provision under Section 188 and other laws in the guidelines to restart factories in case of any non-compliance and covert threats by local officials of sealing of factories and imprisonment of owners have left MSMEs deeply worried,” said Animesh Saxena, president of Federation of Indian Micro and Small & Medium Enterprises (FISME).
FISME, a group consisting of over 700 MSME associations, advised the members to exercise extreme caution before restarting and suggested waiting for a more rational set of guidelines from the ministry of home affairs. This news comes a day after industry body CII submitted a detailed memorandum to the government for clarity on guidelines as companies set ready to open up businesses and factories.
It said, “Some local officials have become anxious after some chief ministers publicly said district magistrates and local administration will be held responsible if new cases are reported from their districts, which has made things worse. Each state has come out with its own process and onerous requirements”.
The group said, “FISME is working with health experts and some international organizations to develop a more pragmatic set of guidelines to restart operations, which are to be more realistic of an MSME working environment”.
Social distancing which cramp the labour into tiny spaces among smaller units, will pose an issue, the sectorial experts said. Further, it is compulsory for factory owners to obtain medical insurance for the employees, labours and workers who are not covered by ESI.