While it cannot be denied that the new Corona virus or COVID-19 as it is scientifically known has had an awful affect on not only on Indian economy but on a global scale as well.
Through years of stubbornly low growth and sustenance, it almost felt that the Mining industry, especially the quarry and crusher segments might finally get a break after all, but it wasn’t meant to be even after passing sensible legislations banning the use of river sand through the state.
Given the fact that wasn’t a central rule but only for participating states, it was considered good omen for states like Tamil Nadu, Karnataka and Andhra Pradesh where there were a ton of new crushers popping up in these states. The respective governments were keen to give them the licensing for it because it helps the environment in a huge way.
Source: Livemint.com
Given the immense potential of the MSAND production in these states, this lockdown has brought everything to a grinding halt. We in the quarry and crusher industry, are in a severe bind. Not only those who own the units are wondering how the resumption of normality will affect their business but also most of those who work in these fields are laborers outside the states. Given the significant migration of labor, it will clearly downsize their production over time. The resumption to normal will take a long time than predicted by the economists.
Rest assured, the centers decision to implement this complete and total lockdown was not easy but what we are concerned is its short and long term effects on our industry. How long can we have a zero-value addition on our GDP? How will it affect small and medium enterprises and those that caters to the mining sectors such as software and other suppliers?
That remains to be answered. But from our predictions and analysis, the situation is indeed bleak.
