KOCHI: The crippled plywood industry in Perumbavoor is seeking immediate government intervention to revive the badly damaged units. The nearly 70 small and medium plywood units, which were devastated in floods, have not yet received any support from the government. There are nearly 450 plywood units in Perumbavoor and nearby areas.
The entrepreneurs are finding it tough to raise funds for repairing and re-installing the machineries. Unless the government intervenes, a few of them will have to abandon the units due to financial constraints.
"Though the Saw Mill Owners and Plywood Manufacturers' Association (SOPMA) has submitted a memorandum to Industries Minister E.P Jayarajan seeking a special relief package, no measures have been taken," said M. M Mujeeb Rahman, state president of the Association.
Seventy plywood units were damaged of which 40 had suffered serious destruction in deluge. Raw materials, machineries and finished products were lost in floods.
"The total loss will be to the tune of Rs.200 crore with each unit suffering a loss of Rs. 10 to Rs.15 lakh to Rs.2 to Rs. 3 crore," he added.
"The only relaxation given to entrepreneurs is more time to pay the power bill for the month of July," said Nizar M.M, a unit owner from Allapra.
The manufacturers also urge for waiver of interest on existing loans. The unit owners are also concerned of the timely settlement and disbursal of insurance claims. "The insurance companies have not yet completed the assessment of damaged units. With no financial support from government or any other agencies, the entrepreneurs have to raise funds for refurbishing the units. Many of them availed fresh bank loans or assistance from private agencies to revive the units," added the Association president.
With no work, most of the migrant workers have left for native place and there is shortage of raw materials. It will take two or three months to recover from the crisis situation, according to manufacturers.
