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Covid-19 Pandemic and the Prolonged Lock - Down That Ensued

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Covid-19 Pandemic and the Prolonged Lock - Down That Ensued Maharaja Ranjit Singh Death Anniversary (June 27) 2 Punjab Advance June-2020 Editorial Amid mounting economic woes, the Punjab Cabinet has decided to seek a fis - cal stimulus of Rs 51,102 crore from the Centre to help the state tide over the financial crisis triggered by the Covid-19 pandemic and the prolonged lock - down that ensued. In addition to direct fiscal stimulus of Rs. 21,500 crore, the state government has sought waiver of the long-term CCL debt as imperative for the fiscal re - covery of the State Government. To explain to the average reader, what is this long-term CCL debt? Well in October, 2016, just a few months before the 2017 Vidhan Sabha elections, the SAD-BJP government took a Rs 31,000 crore loan as part of the cash credit limit (CCL) from banks for carrying out procurement of rice and wheat for the Cen - tral pool. This massive loan entailing payment of an annual instalment of Rs 3,200 crore for 20 years was inherited by the Capt Amarinder Singh Government when it took charge in 2017. This inheritance, with empty coffers and the resultant cash crunch, stands out as a thorn in the flesh for Capt Amarinder Singh. But the Fauji Chief Min - ister took it in his stride. He was confident that the Centre would find a solu - tion so that the food bowl of the country could keep the nation properly fed. He sought the Centre’s support in settling the Rs 31,000-crore debt. His re - sultant meetings with the Prime Minister, Union Finance Minister and Union Food Minister seeking the setting up a review committee to examine the mat - ter afresh has shown positive response, minus the action. The state government would require Rs 3,240 crore to be spent every year on debt servicing for the next 20 years at the cost of the welfare schemes of the state. Besides, the Rs 18,500 crore interest on Rs 12,500-crore CCL legacy gap is exorbitant as it would mean that the state would end up paying Rs 270 crore every month for the next 20 years. This would incapacitate the state with regard its welfare schemes. Punjab has remained the ‘annadata’ of the nation being the biggest con - tributor to the country’s food bowl for the past 60 years. It is time now for the Centre to compensate the state and its farming community. June-2020 Punjab Advance 3 s t 10 14 Halt in labour exodus Sowing of rice begins Hockey ic n is n e t n o C 06 Capt signals revival of industry 4 Punjab Advance June-2020 24 30 38 on Balbir Singh Rishi -a treasure trove of Bhai Vir Singh, no more talent father of modern Pun - jabi literature Punjab www.punjabadvanceonline.com June - 2020 Advance LVOL›6 L ISSUE›7 Room No. 1, 5 th Floor, Punjab Civil Secretariat, Chandigarh-160001, Ph. : 0172-2740668, Email Id: [email protected] C.E.O. - Anindita Mitra (IAS) Editor - Donald Banerjee Designer - Karan Kumar Publisher - Information & Public Relations Department, Punjab Disclaimer: The views expressed by the authors in the articles published in PUNJAB ADVANCE are their own. They do not necessarily reflect the opinion of Punjab Government or the organization they work for. Editor reserves the right to edit, abridge or expand the articles submitted. In case of any dispute, legal jurisdiction will lie in Chandigarh based courts.Published and Edited by Ms. Anindita Mitra (IAS) on behalf of the Information and Public Relations Department, Punjab at Room No. 1, 5th Floor, Civil Sectt., Chandigarh June-2020 Punjab Advance 5 Cover Story Capt signals revival of industry v Curbs go, but caution is the key word v CM thanks labour force for staying back Donald Banerjee ith the highest num - Weasing ber of 95,202 of more curbs registered in - under Lock - dustries, 45% down 4.0, the of the units industries in are func - Punjab are tional. Simi - steadily limp - larly, 60% of ing back to the total normalcy. As 20,200 indus - per figures tries are available of operational the total num - in Amritsar, ber of 2.59 while 90% of lakh industries the total in the state 18,170 regis - more than 1.5 lakh units have resumed opera - tered industries have resumed operations in tions. Jalandhar district. In Nawanshahr, 82% of the All categories of industries have been allowed total 2,200 industrial units have begun work. to function in rural as well as urban areas and no With industrial activity abuzz and construction separate permission is required for resuming op - work expected to resume in the real estate sec - erations. tor, there has been a change in the mind of mi - In the industrial hub of Ludhiana, having the grant labourers, who are now preferring to stay 6 Punjab Advance June-2020 Cover Story back. This follows the feedback about the plight The resumption of operations in these small of migrants who have reached their native vil - units, which normally have labour living on or in lages in UP and Bihar. In the past one week there the vicinity of the premises, will be subject to re - has been a big drop in the migrants boarding the quirements of access control and strict compli - Shramik trains.The dwindling rush in UP and ance with Covid SOPs. Bihar trains is visible with just 40 per cent occu - The Chief Minister said repeated requests had pancy of the total allotted berths been received from industry associations to allow The Chief Minister has thanked the large opening of industries in mixed land use, with ac - chunk of labourers who have chosen to stay back cess control in non-containment zone of Ludhi - and contribute to Punjab's economic strength, ana District, subject to adherence of all Covid adding that “this is your state and you are part of SOPs / guidelines. State Industry Minister Sunder it.” It is vital for industry to function for ensuring Sham Arora had also suggested that such small livelihood, he said, urging all to keep following units should be allowed to function in order to social distancing norms stringently at work places enable the bigger industries to start operations, to beat the virus at every step. “Given the way he added. we have controlled the situation, we will not The Chief Minister said he had been informed need a strict lockdown again,” he added. that industry in certain industrial areas in Ludhi - This industrial revival got a further boost, with ana is not yet open despite being permitted to the Chief Minister, Capt Amarinder Singh giving operate under the recent guidelines allowing in - the go ahead to tiny/cottage industries in non- dustries falling in SEE/EOUs /Industrial Estates / containment mixed use areas of Ludhiana to im - Focal Points / Designated Industrial areas, as per mediately resume operations, in order to support Master Plan of Ludhiana, to resume operations. the opening of bigger industries that are de - Notably, Ludhiana is an Industrial city having pendent on the small ones for components etc. approximately 95,000 MSMEs, offering employ - June-2020 Punjab Advance 7 Cover Story ment to more than 10 lakh skilled and non-skilled Relief package for industrial workers. These workers belong to var - ious states of the country, and as a result of the real estate sector prolonged lockdown, have become unemployed Capt Amarinder Singh has announced a slew and are facing great hardship, the Chief Minister of relief measures for the beleaguered real estate noted. sector. These measures include a six-month ex - Unfortunately, he observed that despite eas - tension in the permissible period of construction ing of restrictions, only 6,900 of the industries in of plots/projects for all allottees, whether private Ludhiana have so far resumed activities. Many of or allotted by state urban authorities, either the industries are not able to start their works as through auction or draw of lots. they are dependent on various small and tiny cot - The stimulus package for both allottees and tage industries which provide them components developers, is aimed at providing them with im - etc, and most of these small / tiny / cottage in - mediate relief, while arresting the slowdown in dustries are located in mixed land use areas as housing sector. The relief measures are applica - per notified Master Plan, pointed out the Chief ble to all the Urban Development Authorities of Minister. the state, and shall be restricted to amount due The micro/tiny industries in mixed land areas from April 1, 2020 to September 30, 2020. constitute about 50% of the industrial set-up in Referring to the financial implications of the the district, and employ about 5-6 lakh workers. 6-month extension in construction period, the Established about four decades back, these have Chief Minister pointed out that since the devel - been granted industrial connections and, for all opment authorities annually receive non-con - practical purposes, these mixed land areas are struction fee of nearly Rs 35 crore, this particular considered as industrial pockets for green indus - relaxation would lead to reduction in receipt to tries. It is also worth mentioning that these units the tune of Rs.17 to 18 crore for all the authori - are being operated by their owners themselves, ties put together. and employ only a few other workers who reside All the urban development authorities have in the same area. also been directed not to charge non construc - tion charges/extension fee/license renewal fee for the period from April 1 to September 30, 2020.
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