India lockdown: proposal to reopen labour intensive units at min capacity

As India mulls extending the nationwide lockdown due to the coronavirus outbreak by two more weeks, the country's Department for Promotion of Industry and Internal Trade (DPIIT) has proposed that labour-intensive industries be allowed to resume operations at 20-25 percent capacity with strict adherence to social distancing and sanitisation norms.

The department also suggests resuming operations at sectors like automobiles, steel, defence and electronic manufacturing at 20-25 percent capacity in a single shift initially, maintaining proper safety precautions to avoid crowding.

In a letter dated April 11 to Indian Home Secretary Ajay Kumar Bhalla, DPIIT Secretary Guruprasad Mohapatra suggested that "big" companies in textiles, automobiles and electronic manufacturing that follow proper sanitation and distancing norms be allowed to restart operations at 20-25 percent capacity in a single shift.

Apart from the industries operating as essential services, certain other activities should be allowed, with reasonable safeguards, once the government takes a final call on the extension and nature of the lockdown, according to the letter. 

"These new activities are essential to improve the economic activity and provide liquidity in the hands of the people," he said in the letter.

It said housing and construction sectors need to be allowed to restart operations if labourers stay at the sites with all facilities and safeguards and contractors ensuring safety, sanitation and distancing norms.

The letter was the result of a "very detailed interaction" of Commerce and Industry Minister Piyush Goyal with various states and industry bodies.

The DPIIT has proposed that certain repairing units like those for mobile, refrigerators, automobiles, air conditioners and television also be allowed.

"This will help the citizens under lockdown to avail these critical services and also provide them cash liquidity, which is required very much. Also, these services do not lead to any crowding. E-commerce entities providing such repair services may also be allowed," the letter said.

It also said that micro, small and medium enterprises with export commitments "need to be allowed to operate with minimal manpower and necessary movement of material".

The letter also proposed that ancillaries catering to essential industries like pharmaceuticals and healthcare may also be allowed to operate. This includes certain segments of the rubber industry and those producing medical equipment like gloves, hospital rubber sheets, medical devices, catheters, anaesthesia bags and ventilator bellows.

"Timber, plywood and wood-based industry provides packaging material to pharma companies, FMCG and other companies producing essential commodities. These should also be allowed by the state authorities," the letter read.

Among other sectors that have been recommended for resumption of operations with minimum manpower, the letter listed makers of telecom equipment and components, steel and ferrous alloy mills, power looms, cement plants, all types of food and beverages, plastic manufacturing units, big and organised gems and jewellery sector units, automotive units and all SEZs and export oriented units.

Industries allowed to operate would have to ensure safety measures like single entry points for workers, sufficient space to ensure social distancing, use of separate transport for ferrying workers or arrangements for their stay and "high quality" regular sanitisation of the premises, the letter said.

"State and district authorities, while allowing these activities, should ensure strict observance of these conditions," it said.