Foxconn, Wistron need state & district administration nod to open manufacturing in Tamil Nadu & Karnataka

Industrial activity is at best limited a week after the Centre allowed some economic operations to resume. Lack of local clearances, shortage of workers and raw materials, piled up inventory and regulatory confusion are all contributing to Indian business still remaining largely locked down.

Foxconn and Wistron have suspended production. They face shortage of imported parts such as PCBs, chips and displays. Production of medical electronics is also hampered by absence of critical imported spares. Plants of Samsung, LG, Vivo, Oppo, Realme, OnePlus, Godrej Appliances and Panasonic remain shut.

Foxconn and Wistron need state and district administration clearances to open manufacturing in Tamil Nadu and Karnataka, respectively. Industry body CEAMA said some consumer electronics makers will wait till lockdown is over to resume production. This is also because there’s an inventory pileup.

Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA) had earlier said that the industry is permissions based on no infringement of home ministry guidelines. “Restarting manufacturing operations is challenging but feasible…we have given world-class health SOP’s which the industry will adopt and follow.”

Mohindroo added it will take seven to 10 days from the day of grant of permission for factories to start operations, but cautioned that it would take a further roughly four weeks to get to even 50% capacity.

Despite Centre allowing 50% staff to work from office, majority IT services employees are still working from home. Most companies are unsure about the ramifications of opening up office spaces.

Way Forward: Industry body Nasscom has told TCS, Infosys and Wipro that they should look at staggered opening of campuses. But employers will need local permissions in some states as well as clarity on use of cabs for employee transport.

―Gadgets Now