The Chamber of Commerce of Shivamogga on Saturday indicated that it will seek relief from the government in view of the impending slowdown in production at the foundries here which cater majorly to the automobile sector.
The foundry industry has been grappling with a slowdown due to sluggish demand from the domestic and abroad automaker clients. There are 40-50 major foundries in Shivamogga which have 4,000 to 6,000 employees.
"In Shivamogga, we have 40-50 major foundries which have 4,000 to 6,000 employees. The foundries are majorly engaged in the production of auto components. These components are exported to USA, UK, Australia, Brazil and Middle-East countries. Now, a stage has reached to lay off the employees because of negligible orders from the automobile sector," Vasudev, President of Chamber of Commerce, Shivamogga said.
"We are looking forward to having a discussion with the factory owners along with the chamber of commerce. We are not asking for any subsidy but a relief from the government. Since the economy is undergoing a slowdown, we need a relief to alter the NPA status of loans taken from the banks based on the payback period. In this way, the industries will be able to sustain itself if it gets more time to do the loan re-payment," he said.
Vasudev said that the slowdown in the auto sector is being witnessed due to a boost given to the E-vehicles by the government as a result of which the conventional vehicles are facing a slower demand than usual.
"Many manufacturers produced conventional vehicles are lying in the godowns because of the boost to E-vehicles. As an effect of this, manufacturers have slowed down their production. Because of this, the ancillary units are also affected because they supply parts to the automobile industry. There is a shortage of buyers due to the shortfall in production," he said.
( With inputs from ANI )