Karnataka trade bodies to shut down factories, service establishments till March 31

The trade and industry bodies in Karnataka have unanimously decided to shut down labour intensive establishments including MSME units till March 31, 2020 to support the state government in containing the spread of coronavirus.

Trade bodies such as Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Karnataka Small Scale Industries Association (Kassia), Peenya Industries Association, representatives of garment and printing industries on Monday decided to shut down their manufacturing operations between March 24 and March 31.

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"We at FKCCI, Kassia and PIA having considered the health and safety of the workforce are prepared to adhere to the orders/directive of the government of India and the government of Karnataka requesting the member industries and trade to close their offices and units till March 31," said C R Janardhana, President, FKCCI and R Raju, President, Kassia in a joint statement.

They said an estimated 70 lakh workers employed in 6.5 lakh micro, small and medium enterprises and service establishments across the state will be given paid holiday till March 31. With this, the state will suffer a production loss of an estimated Rs 10,000 crore per week, while the state government will lose GST revenue to the extent of Rs 3,500 crore per week, Raju told DH.

However, based on the order (DD/SSU/COVID-19/17/19-20 dated March 22, 2020 of the GoK), essential services will be allowed to operate as an exception. There will be supply of food, ration, milk, vegetales, groceries, meat, fish, fruits, etc. Transport of all essential goods will functioin as usual. Police and fire services, governmet offices, ULBs and postal services will function normally.

The government, in its order, said all information technology and bio-technology units will ensure work from home except where it is not feasible to do so and in respect of the units and staff dealing with critical and essential services. All air-conditioned bus services of road transport corporation and private operators shall be stopped, it said.