New Delhi: Due to 21-day nationwide lockdown in the wake of coronavirus outbreak, the domestic auto component industry is suffering a loss of around Rs 1,200 crore per day, the industry body Automotive Component Manufacturers’ Association (ACMA) said on Friday.
Given the unprecedented situation, the auto component industry is trying to mobilise all possible resources and assets that can help the Government and front-line workers fight the pandemic, ACMA said in a release. In a bid to mitigate the immpact of COVID-19, ACMA has sought relief from the government and also put forward the request for ease of NPA recognition norms by extending moratorium on payment of principal and interest by at least 1 year.
Commenting on this situation Deepak Jain, President ACMA, said “With complete stoppage of production in the vehicle industry and scarcity of working capital, the situation in the component manufacturing units, including the tier-2s and tier-3s has become quite acute, threatening their survival. We have requested the government for helping us with immediate relaxation of borrowing norms & statutory payments, extension of moratorium on payment of principal and interest of loans for a year, among others. We are also seeking support of SIAM and the OEMs to ensure minimal disruption of the supply chain.”
He further said, “We have requested the government for helping us with immediate relaxation of borrowing norms & statutory payments, an extension of the moratorium on payment of principal and interest of loans for a year, among others. We are also seeking the support of SIAM and the OEMs to ensure minimal disruption of the supply chain.”
The industry body said it has also created a task force that is evaluating the possibility of manufacture of facemasks, hand-sanitizers by its members.
Several component companies have shown keen interest to manufacture ventilators and members are evaluating the option to import them through their CSR funds.
The association said it has also sought guidance from the government on the standards for such equipment and the quantity needed.
ACMA has issued an advisory to all its members to maintain the safety & security of all permanent and contractual employees, ensuring no layoffs and timely salary for the month of March.
It claims that over 1 lakh contractual employees have already been paid their salary for the month of March.