AFVOA Newsletter May 2020

Section 3 - Memoirs Newsletter No. 1 / 2020 P a g e 70 | 101 The moment Force Majeure clause is lifted irrespective of at what rate we are starting and ramping up our operations, customers’ expectations will rise, and they will demand all projects to be completed ASAP. Supply chain will take at least three to six months to stabilize after shipping and air cargo is restarted. Not to forget that even at OEM premises work on assembly line was on hold and even they have invoked FM on us. Once the hardware is received, getting the specialists for its installation and commissioning will be an uphill task. Will such specialists come with a Corona Free Certificate or we will have to quarantine them are all such questions which are still unanswered? Under the circumstances, we are looking at some of the steps which the Government should take to bring Defence Industry like ours back on track and FICCI/ SIDM can play a key role in that: (a) Consider Defence Industry as a “strategic industry” and exempt it from total lockdown and allow at least 50% operations following the COVID precautionary norms. For the industries which are in rural areas, 100% resumption of operation should be allowed since local ecosystem also depends on these industries. (b) Allow movement of finished goods and raw material to be transported to/from various defence industries. (c) Provide monetary assistance to various Defence Industries for the amount spent on maintaining migratory labour, else, it should be considered as part CSR activity by a separate notification. (d) Payment of all dues to companies as on 31 Mar 2020 without any delay to ease their cash flow and support various MSMEs which are part of their supply chain. (e) Government should permit phase wise lifting of Force Majeure since no industry can straight away commence 100% operations view constraints of labor and inputs from various vendors. (f) Allow deviations in specifications if foreign supply is not possible and to use best available Indian substitute. (g) Minimise imports and concentrate more on indigenous production for all future acquisitions by easing out on stringent specifications which leaves