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Violence takes toll of Rs 100 crore daily for MSMEs in Muzaffarnagar

Updated: Sep 09, 2013 04:52:50pm
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From Swati Dayal

Muzaffarnagar, Sept 9 (KNN)  Apart from bringing normal life to a halt, riots and violence in the city and near-about areas have resulted in a daily loss of over Rs 100 crore for the trade and micro, small and medium enterprises, hitting  daily workers the most.

“Everything is shut. Livelihood of transporters, drivers, daily wage workers, ancillary service owners is on stake…..There are about 2,500 MSME units in the area while traders are about 6,000.  Total work force, including transport, rickshaw pullers, construction workers etc are about 30,000. They are willing to resume their work but cannot come out of their houses because of curfew in the area,” Neeraj Kedia, Managing Director of the city-based Chakradhar Chemicals Private Ltd said.

Kedia, who is also the past President of the Federation of Indian Micro, Small and Medium Enterprises (FISME), said it is estimated the MSME sector alone is suffering a daily loss of Rs 100 crore.  The city hosts a number of small and medium enterprises engaged in chemicals, steel, paper, pharmaceuticals and sugarcane crushing.

According to district officials, the curfew in the city is not likely to be relaxed in the next 24 hours. They said the situation is tense but under control today.  As many as 29 people have lost their lives in the district with the clashes spreading to rural areas in the last few days.  

Kedia said the violence and the loss of confidence in the area are expected to delay the ensuing sugarcane crushing which generally begins after middle of September. “Jaggery processing factory owners would have invested and it is going to be delayed."

Director of Dayachand Engineering Industries Naveen Jain said, “Industry is completely shut down. It would take at least a week to rebuild confidence and a sense of safety among workers to resume work.  Steel and paper industries are incurring major losses. Low wage workers, daily wagers, vegetable vendors, rickshaw pullers and drivers are suffering the most. There is a complete failure of law and order.”  Jain who is also the Central Executive Committee Member of FISME said on average a small unit employs 10 persons and there are about 3,000 MSMEs in the area.

However, the situation in the neighbouring Meerut city is normal, Managing Director of Meerut- based Sai Electricals Girish Kumar said adding that Shamli and Muzaffarnagar districts are affected. But transport on the Highway Number 58 (Delhi-Dehradun) is affected. (KNN/SD)

 

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