Gujarat suffers losses worth Rs 15,000 crore

The torrential rains, which lashed Gujarat, have crippled the state’s economy by paralysing several crucial industries amounting to los...

The torrential rains, which lashed Gujarat, have crippled the state’s economy by paralysing several crucial industries amounting to losses in excess of Rs 15,000 crore.

Industries worst-affected by the flooding on account of incessant rains in central and south Gujarat are pharmaceutical, dyestuffs and chemicals, textile and the diamond industry.

Preliminary estimates indicate heavy losses due to stoppage of production, loss to industrial machinery/equipments along with heavy absenteeism in the flooded industrial areas.

Story continues below this ad

President of Gujarat Chamber of Commerce and Industry, Rajendra Shah said, ‘‘Industries are undergoing losses to the tune of Rs 400 crore per day and the routine production work has not yet started. Total losses will be to the tune of Rs 15,000 crore, including over Rs 5,000 crore for the physical loss suffered by industries.’’

Chairman of Indian Drug Manufacturer’s Association (IDMA) of the Gujarat board, N.C. Dalal said, ‘‘Out of 1,500 pharmaceutical units in Gujarat, around 400 units are affected due to heavy rain. Besides the production loss, the primary statutory losses are almost in excess of Rs 500 crore. The finished export goods have been damaged due to rising water level.’’

Former chairman of IDMA, Kamalesh Udani said, ‘‘Industrial areas of Surendranagar in Saurashtra and Vadodara have suffered heavily due to the rains.’’

‘‘The estimated loss of industrial units is pegged at Rs 1,000 crore. Out of 3,000 SMEs in the chemical/dyestuff sector, more than 50 per cent are closed,’’ said past president of Gujarat Dyestuffs Manufacturer’s Association, Shailesh Patwari.

Story continues below this ad

According to president of South Gujarat Chamber of Commerce and Industry (SGCCI), Dilip Chasmawala, ‘‘Losses to textile and diamond industry in the region have been in excess of Rs 750 crore. The diamond industry has been the worst-affected sector where losses of Rs 50 crore were registered amounting to Rs 500 crore to the industry.’’

Commenting on the current status of industries in central Gujarat, president of FICCI (Western region), Amit Goradia said, ‘‘The communication network including the road connectivity has been completely lost. This has resulted in stoppage of raw material. Production is likely to start in next three to four days as the rains have stopped. However, chemical industries will take a longer time to actually start commercial production.’’