Depleting factory assets, market shutdown put metal SMEs' survival at stake

These units continue to incur costs like wages and interest on loans; worse, shipping lines and container services continue to dump them with demurrage in defiance of official directives

Small and medium enterprises (SMEs) engaged in secondary metal production are facing huge financial stress due to the gradual depletion of their factory assets, further extension of the nationwide lockdown and consequent delay in market opening. To make matters worse, these units continue to incur fixed costs like wages and interest on working capital loans.

For units that depend upon imported raw materials, a steep rise in the cost of inputs due to levy of demurrage and detention charges during the lockdown and difficulty in availing further working capital loan have been causing additional stress.

"Around 6,000 SMEs and micro SMEs (MSME)