Gujarat companies get oxygen with government help
In the last one and a half years, 1938 companies in Gujarat have been shut down due to the financial crisis and lack of working capital due to the Koro epidemic. However, these figures are lower than the pre-covid level. In the calendar year 2019, a total of 2961 companies of Gujarat were closed down.
Top companies, including 80 per cent MSMEs, were on the verge of closing due to the lockdown. But with the government’s financial support and relief, companies living on ventilators have found refuge. According to figures released by the Ministry of Corporate Affairs, 12578 companies from Gujarat have registered new ones in the wake of accelerated economic activity since Kovid. A total of 119627 companies are registered. Out of which 39611 companies have closed. Only 76720 companies are operating.
A ray of hope for companies on the verge of closure
- 3300 crore allocation under PLI scheme
- 2.82 lakh crore loan disbursement under ECLGS
- Allocation of 14 thousand crore in self-reliant Gujarat
Working Capital, Raw Materials Prices Challenging
Gujarat’s industrial units have recovered quickly with more than 100 per cent capacity. But amid rising prices of raw materials as well as supply constraints, there has been a massive shortage of working capital. If the new variant Omicron is banned again, it will have a big impact on exports. – Ajit Shah, President, Sanand Industry Association
Companies closed in Gujarat in last 3 years
- 33827 companies closed from June 20 to October 21 across the country
- 1429166 Registered companies operating in the country
- 40-70% share of Gujarat in Chemicals, Pharma, Textile segment
- 780105 companies arose out of a total of 2248969 registered companies