The closure of firework factories in and around Sivakasi (in Tamil Nadu) is expected to create NPAs (Non-Performing Assets) in the banking sector, as reported by Business Standard. Banks, especially the PSBs (Public Sector Banks), will have to cover losses to the tune of Rs 16 Billion (Rs. 1,600 crores).
The Supreme Court in its 23 October judgement allowed for the sale of only ‘Green’ fireworks in Delhi/NCR. However, this is expected to put in jeopardy the livelihood of approximately 8 lakh workers supported by the cracker industry.
“We want to run the factory but cannot due to the court's order,” said E Mariappan of the Tamil Nadu Fireworks And Amorces Manufacturers Association (TANFAMA). He claimed that the sale of fireworks dropped by as much as 60 per cent following the SC order during Diwali. Thus, they are facing working capital shortages and are not able to repay their loans to the banks. “We fear whether we will be able to collect the money for whatever we have sold to the distributor.”
It should also be noted that the SC’s judgement left the vendors perplexed on what ‘Green’ crackers were and also, formulations for the same have not yet hit the markets.
Also Read:
Comments ↓
An Appeal...
Dear Reader,
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.
