TNR Desk
Shimla: The persistent farmers’ agitation, primarily centered around Delhi, is sending shockwaves through industries, particularly impacting the steel sector in Himachal Pradesh. With Delhi under lockdown due to the ongoing protests for the past five days, the steel industry, heavily reliant on scrap from the capital, is grappling with severe disruptions. The consequences are evident as steel operators are forced to shut down their units, anticipating shortages that could lead to production halts and financial losses.
Delhi Closure Hinders Supply Chain
The heart of the issue lies in the blockade caused by farmers at various points in Punjab and Haryana, including the Shambhu barrier, preventing the smooth flow of goods and transport towards Delhi. The steel industry’s crucial supply chain, involving the inflow of scrap and the outflow of finished goods to and from Delhi, has come to a standstill. The impact is significant, disrupting production in various steel industries listed in the Bhakra Beas Management Board (BBMB).
Closures Begin to Surface
While initially, around a dozen steel industries were part of the BBMB, the current scenario reveals a reduction in operational units. Among the surviving entities are Jay Jwala in Barotiwala, Prime Steel, Kuland Loh Udyog, Monten Steel, Friends Alloys, Radiant Casting, Timko Udyog in Nalagarh, and Siddhi Vinayak Udyog. Faced with a dual challenge of goods stagnating in storage and an unfavorable market, steel operators have made the difficult decision to initiate partial shutdowns during specific hours.
Financial Strain on Operators
Sanjeev Sharma, the Pradesh Mahasachiv of Laghu Udyog Bharti, shed light on the predicament faced by operators. The blockade has disrupted the flow of finished goods to Delhi and the influx of raw materials, compelling operators to consider shutting down their industries. Daily operational expenses, worker wages, bank loans, and minimum electricity charges are becoming increasingly challenging to manage. This has triggered a wave of partial shutdowns from 6 pm to 10 pm among steel industries.
Difficulties of Running a Steel Industry Amidst Agitation
Rinku Singla, the operator of Kundal Loh Udyog, expressed concerns about the viability of running the steel industry amidst the ongoing unrest. The lack of movement for finished goods and raw materials poses a serious threat to the sector.
As a response, the steel industry operators have initiated partial shutdowns for four hours, emphasizing the challenges faced not only in operations but also in navigating the complexities of political decisions affecting their livelihoods and the economy. The situation is further compounded by the potential loss of revenue for the government due to the hampered operations of these crucial industries.
