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21/10/2021 04:14pm

Flashfloods rattle MSMEs in Auto supply chain in Uttarakhand

image Flashfloods rattle MSMEs in Auto supply chain in Uttrakhand

New Delhi, 21 Oct (KNN) The flash floods in Uttarakhand had wedged the auto component manufacturing units in the state especially the ones located in Nainital district and near Ramnagar and Rudrapur piling on the strain in production caused to shortage of semiconductors.

“Operations were halted for 2 to 3 days with 50 per cent drop in production, as local workers could not come to the unit due to floods,” informed Rakesh Chhabra, Managing Partner, Sonipat based Choudhary Enterprises also having a manufacturing facility in Haridwar.

Uttrakhand has a good number of automobile and auto-component manufacturers, with Pantnagar and Haridwar as important auto hubs.

Speaking with KNN on this matter, Pankaj Gupta of Uttrakhand Industries Association said, “MSMEs are still trying to come to term with pandemic, and now due to this floods there’s a possibility we lose the market.”

Gupta urged that, “Uttarakhand is a disaster prone area hence, the Government should provide some financial assistance to small businesses from all sectors. We are always at high risk in such situation for this reason we need a government sponsored insurance scheme.”

Further, Rajiv Chawla of IamMSMEofIndia added that, “Fortunately, our Haridwar plant is functioning in full swing, however, we did stop for a day. But the remote and hilly areas are drastically affected. Administration should restore internet and road connectivity as it has disrupted lives.”

The giant automobile manufacturers, including Tata Motors, Bajaj Auto, and Ashok Leyland and their suppliers have plants in Uttarakhand which was closed for a day on Tuesday.


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