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Coronavirus Lockdown 2.0 Guidelines: Conditions eased for manufacturing companies to restart operations

Companies in auto, steel and capital goods sectors had either stopped production, or curtailed it, after the COVID-19 outbreak

April 15, 2020 / 11:30 IST
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    The government has taken steps to ease conditions for the manufacturing sector to resume operations.

    The steps include allowing industries outside limits of municipalities and municipal corporations to start operations, freeing up transportation of goods and setting guidelines for the movement and stay of labour.

    The guidelines were released by Ministry of Home Affairs, on April 15.

    The steps could help companies in sectors such as steel, auto and capital goods to re-start operations. Companies who had cut production, can now plan to bring back operations to normal levels.

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    Most of these companies, including Bajaj Auto, Maruti Suzuki in the auto sector; and Tata Steel, JSW Steel and AM/NS in the steel sector, had either shut production units, or had curtailed operations.

    "We are looking to start using full capacity by the end of April," said a senior executive of a major steel company, after the guidelines were announced. The company had earlier cut its production.

    Though steelmaking was already listed under essential activity, companies were struggling to move goods, and find labour.

    Easing movement

    The released guidelines look to ease conditions on both counts.

    While till now only those trucks carrying essential goods were allowed to move, now all goods traffic has been allowed to ply. The guidelines specify protocol to be followed:

    "Movement of all trucks and other goods carrier vehicles with two drivers and one helper.... an empty truck/vehicle will be allowed to ply after the delivery of foods or for pick of good," say the guidelines.

    To ensure better working conditions for drivers and helpers, the government has allowed vehicle repair shops, and dhabas on highways, to open.

    On labour

    For manufacturing units that are based in SEZs, or are export-oriented and have industrial townships, the government has laid guidelines that could help companies ensure supply of labour.

    "These establishments shall make arrangements for stay of workers within their premises as far as possible and, or adjacent building...transportation of workers to work place shall be arranged by the employers in dedicated transport by ensuring social distancing," said the guidelines.

    Follow our real-time coverage on COVID-19 here.

    Moneycontrol News
    first published: Apr 15, 2020 10:58 am

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