Kolkata - West Bengal's <link _top>foundry industry has plunged into a crisis and is forced to reduce working hours as domestic sales and exports have drastically come down in the wake of global economic downturn and recession in the West.
"Out of 350 <link _top>foundry units in the state, around 70 are already closed and by the end of the current fiscal year, the number may exceed 100," Engineering Export Promotion Council (ER) Chairman and promoter of a <link _top>foundry unit in the state Ravi Sehgal said here.
The situation is so grave that the industry has to reduce production by more than half in recent times to 15,000 tonnes per month compared to around 32,000 tonnes per month earlier.
"This has compelled industry players to reduce working hours for its employees. The industry is not going for lay- offs now as it is anticipating good times to return in the near future," Sehgal said.
Coupled with domestic sales, exports in recent times have also come down by as much as 40 per cent in value terms due to poor demand from the US and European markets, he said, adding that volume-wise, the demand might be far less.
The existing units are running 60 per cent below the installed capacity, he said.
Meanwhile, Indian <link _top>Foundry Association's newly-appointed Chairman Pawan Sureka said that IFA would develop a common facility centre at Santragachi in Howrah with an investment of Rs 15 crore excluding the cost of land.
