No one can forget the lockdown caused due to Covid pandemic and its after effects, which can be witnessed till now. According to experts, from April 2020 to February 2021, around 500 companies in Chandigarh had to shut down their business due to the lockdown, which left many unemployed. Many had to leave the city or start some other work. These figures were presented in the Lok Sabha during the proceedings of the House on behalf of the Ministry of Corporate Affairs.
It was said that more than 10,000 companies closed down voluntarily in India between April 2020 and February 2021under Section 248 (2) of the Companies Act, 2013.
Studying the statistics, startup experts said that after the shutdown of the companies, the administration did not support the young industrialists. Work came to a standstill during the lockdown period, but the bank loans continued and loan instalments kept going. The supply chains completely broke down and some companies tried to stay in business with the help of their capital, but to no avail.
An industrialist in the city said that closure of companies meant that people had become unemployed. “The government should have stored data on the number of people who lost their jobs due to the closure of the companies. However, UT administration officials say they do not have any data in this regard.”
An industrialist, who used to run a cloud kitchen in the city, on the condition of anonymity said that he used to supply food items to many shops. “Business was going well and as per the plan, the target was to open 10 to 12 stores only in Chandigarh by the year 2022-23. Work was on to meet this target but due to Covid lockdown, the entire supply chain broke down. Many of the shops to which I used to supply food closed down. Demand kept decreasing and the debt kept on growing, due to which I was forced to close the company.”
