-SATISH HANDA

Large number of micro and small industrial units in Haryana involved in job work for automobile parts working on contract basis with big automobiles manufacturers like Maruti, Honda, Hero, JCB and other manufacturers situated  at Faridabad, Gurugram, Rohtak, Rewari, Sonepat, Jhajjar and few other areas in Haryana state as well as in the neighbouring U.P state at Noida and Ghaziabad. According to owners of these small scale units involved in job work on the basis of long term agreement without any provision for revise in rates for large players, they are facing severe financial crisis since April 2020 when lock down was declared in the state due to epidemic outbreak as a result several manufacturing units had to close down their shutters or facing severe sickness, moreover the prices of basic raw material used to manufacture auto parts is constantly rising since then as such automobile sector passing through severe economic crisis since all automobile manufacturers place orders for job work for a specific period of contract. Information reveals, most of the tiny units have already been closed down in past about a year or many others have turned sick.

According to Veer Bhan Sharma IMT Industries Association Faridabad, the cost of raw material used to manufacture auto parts has increased between 30 to 73% and association has already written to Union MSME Minister Nitin Gadkari to constitute a Raw Material Domestic Price Regulatory Committee to maintain price control of raw material produced in the country and large automobile manufacturers should make available raw material to micro and small auto parts man8ufacturers involved in job work for them at concessional price and small manufacturers to make supplies after adding reasonable margin towards cost of production. The association also demanded entry of two members from MSME units in the regulatory committee.

J.N. Mangla President Gurugram Industrial Association said, a request has been made to  MSME Minister Nitin Gadkari  to have control over constantly rising prices of raw material otherwise all small scale manufacturing units will collapse. He forwarded a list of some basic raw materials used in manufacture of automobile components witnessed drastic increase in prices in past sometime which include price of Black Carbon from Rs 67 to 116 per kg having 73% increase, Cr Sheets from Rs 49 to 82 per kg having 67% increase, HR Sheets increased from Rs 43 to 69 per kg having 60% increase, Copper from Rs 600 to 900 per kg having 50% increase, Steric Acid from Rs 68 to 95 having 40% increase and natural Rubber  from Rs 129 to 169 oer kg having 31% increase.