SICCI pegs industry’s flood losses at Rs 10,000 crore
It is estimated that the entire losses would exceed Rs 10,000 crore with a serious impact on the TN economy.
Chennai: The South India Chamber of Commerce (SICCI) has estimated the losses suffered by industry in Chennai and rest of Tamil Nadu during the rains and the consequent flooding at Rs 10,000 crore.
Palani G Periasamy, president, SICCI, commenting on the economic impact of flooding in Chennai said the city contributes nearly 3 per cent to India’s GDP and an impact from such a natural calamity will have serious ramifications at both the local and national levels, leading to huge losses.
The Chennai region’s vulnerable micro and small industrial sector has estimated losses of nearly Rs 840 crore every week due to floods, while the textile traders could suffer financial losses to the tune of Rs 400 crore, the loss due to stoppage of production in the pharmaceutical industry could be at Rs 150-200 crore, the logistics industry (both air & sea) at Rs 200 crores and the overall loss to the entire automotive sector could be around Rs 1,200-1,500 crore this week.
It is estimated that the entire losses would exceed Rs 10,000 crore with a serious impact on the Tamil Nadu economy. Rains not only hampered production for days, but also triggered shortage of essential supplies and the work force for production to resume.
SICCI has sought government’s intervention in the short term, in easing the monetary burden of the industry in this regard and provide rescheduling loans, rebuilding the damaged units and easy access to working capital, he urged.
According to Tamil Nadu Vanigar Sangangalin Peramiappu, president A.M. Vikrama Raja, more than one lakh shops in Chennai have been affected during floods and the government should take steps to rehabilitate small-time traders who had incurred heavy losses running into crore.
Retail and wholesale traders in Chennai, Tiruvallur, Kanchepuram and Cuddalore have suffered the maximum damage. Particularly provision stores, medical shops, eat outs and, rice godowns have been adversely affected.
Direct loss to traders will cross Rs 2,000 crore in the four districts. The state is enumerating the relief for residents and traders should also be enumerated and compensated. The centre through Micro Units Development and Refinance Agency Bank should provide interest free loans to bail out TN farmers, Raja added.
Download the all new Deccan Chronicle app for Android and iOS to stay up-to-date with latest headlines and news stories in politics, entertainment, sports, technology, business and much more from India and around the world.
