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Air Pollution: Production at 3.4 M MSMEs hit in Punjab, Haryana, Delhi

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The severe smog in northern India has impacted factory output with delay in supply chains and lower efficiency of workers resulting in higher cost of production, industry chambers said, prompting companies to undertake mitigation measures.

As per the estimate by the PHD Chamber of Commerce and Industry (PHDCCI), production at over 3.4 million micro, small and medium enterprises in Punjab, Haryana and Delhi, employing about 7 million workers have taken a hit due to the smog.

"In view of the same, the enforcement of Stage IV of the Graded Response Action Plan (GRAP) in the National Capital Region (NCR) has affected the transportation, halting all construction and demolition activities in the area, impacting the industrial activities, leading to rise in costs of production and delay in supply chains," Hemant Jain, president, PHDCCI told ET.

"The additional impact on the health of the workers due to prolonged exposure to smog has affected factory productivity, which is further adding to delays in output," Jain added.
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According to Jain, the industry is taking proactive measures to mitigate the impact of smog by following health safety measures, installing air purification plants wherever possible, using cleaner fuels based vehicles and providing safety gears such as masks to the workers.

The northern regions of India, especially Delhi-NCR, have been hit by severe smog over the last few days, mainly caused by stubble burning, vehicular emissions and surge in construction activities, among others.

According to Jaideep Aahuja, chairman, Confederation of Indian Industry (CII) Delhi state, the industry body is collaborating with the government to work on both long-term and short-term measures to address this problem.

"CII is collaborating with all northern states to reduce stubble burning through innovative techniques and had earlier proposed to both the state as well as central government to undertake cloud seeding which could bring temporary relief to the capital city," he said.

Ahuja feels that while work from home is not a solution across most sectors, it is important to quantify the production loss due to absenteeism of workers due to smog related health problems.

"Persistent issue of severe air pollution, especially in Delhi-NCR, could also impact investments in the services sector by multinational companies and start-ups in the region, purely for health reasons, thereby severely impacting the state's economy in the long-term," he cautioned.

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