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Export Promotion Council for EOUs and SEZs Urged PM Modi to Intervene in Policymaking

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The Export Promotion Council for EOUs and SEZs (EPCES) has written a letter to Prime Minister Narendra Modi over difficulties being faces by industry and traders due to sudden sealing of borders, especially around Delhi NCR.

EPCES represents more than 7000 EOUs & SEZs with exports of USD 113 billion (1/3rd of national exports), direct employment of more than 2.5 million people with an investment of more than USD 70 billion.

In the letter, EPCES said due to uncertain sudden sealing of state borders, it is very difficult to operate the business.

“We are finding it difficult to run factory in the absence of trained operators to even to 50% operational capacity,” the letter said.

In NCR industrial areas adjoining Delhi are NOIDA, in UP Faridabad, Gurugram, Kundli in Haryana most of the owners and senior staff live in Delhi.

States have issued e-passes to workers within the state that too to work in situ that is to stay in the factory with one-time entry pass to Delhi staff to work and stay in factory, the letter said.

EPCES noted that the owners of the factories are unable to get travel permission and are finding it difficult to reach their factories in the industrial areas.

We submit industrial towns are on the national highway and state governments have sealed borders, inspite of Supreme Court orders not to seal borders, EPCES said adding that this is causing 3 to 5 km traffic jam.

The letter also said that the sealing the borders of the highway is hampering in running the business.

Exporters are being told to increase export at any cost on the other hand state governments are not providing any assistance to the exporters and daily revising their guidelines to operate.

“For IT/ITES, working from home is OK but for manufacturing, physical presence is necessary. In manufacturing 70% cost is raw material, 20% is labour cost and only 10% is the gross margin,” EPCES said.

“Instructions issued that owners have to stay in factories, is not acceptable as we also have loving families at home and have to attend our old parents and household matters as well,” EPCES said.

EPCES requested PM Modi that either a nationwide stable policy may be issued, applicable in all the states of India for running the business.

SMEStreet Desk

SMEStreet is fast growing platform dedicated to entrepreneurs from small and medium sized businesses (SMEs). Committed to facilitate Knowledge & Networking for Business Growth, SMEStreet offers value added content which shows the actual voice of Indian MSMEs.

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