Garment units at the knitwear capital in Tirupur are set to start production on Wednesday. These units deliver goods worth about Rs 50,000 crore to the domestic and global knitwear market.
Raja M Shanmugham, president, Tirupur Exporters Association has confirmed the development and said that the decision was taken at the meeting held today at Tirupur District Collectorate.
It has been decided to permit for opening of the units tomorrow just by submitting application with the District Collectorate.
He added that the inspection would be carried out later and there is no need to wait till it is done.
The decision will allow all units, including over 1,500 domestic ones, 1,100 export-oriented set-ups, and some 3,000 allied units to kick start operations on Wednesday, Shanmugham said.
The industry will commence production at 25 per cent capacity for the next few weeks.
Responding to a question on the workforce, Shanmugham said, the industry employee around 500,000-600,000 people, including 150,000 migrants mainly from Jharkhand, Odisha, West Bengal and other states. While most of them them have stayed back, even if thy decide to head home, the industry can manage.
The units will not run in 100 per cent capacity as global buyers yet to come out of the crisis, he added.
For the sampling and other orders, the units would require less than 40 per cent of the workforce, which can be sourced within the state, even the 150,000 migrants who are still at Tirupur decide to go head back home.
Shanmugham was also of the opinion that many of the migrant workers would prefer to stay back for reasons of livelihood. Many aren't too sure how they would be received in their respective states.
Around 90 per cent of the units it Tirupur are MSMEs, for whom liquidity is greater challenge than labour shortage. Most of the funds have dried up and banks are not willing to give working capital. These MSMEs want the government to follow countries like Bangladesh, which have announced special packages for industries.