ASSOCHAM estimates loss due to violence at Rs 25,000 Cr
13 September, Bengaluru
The ongoing agitation on Cauvery watersharing issue in Karnataka had resulted in an estimated loss of Rs 22,000 to Rs 25,000 crore, according to Industry body ASSOCHAM.
In a release here today it said violence and the weeklongagitation across Karnataka had led to damage vital urbaninfrastructure,vinterruption in the transport including, roads, railand air and inability of the workforce to safely move to and fromoffices and factories.
”Violence in the state capital and other parts of Karnataka hasseverely dented the image of Bengaluru as Silicon Valley of India,home to almost all the Fortune 500 companies,” said ASSOCHAM whilemaking a fervent appeal for peace in both Karnataka and Tamil Nadu.
”The way the violent incidents had spread is demoralising thebusiness and industrial community, particularly in the capital cityof Karnataka. The image that India built around Bengaluru as its’Silicon Valley’ is being sullied,” said ASSOCHAM SecretaryGeneral, D S Rawat.
”The authorities in Karnataka and Tamil Nadu should not allowunder any circumstances the law and order to be compromised. Whilethe water is a basic requirement and an emotional issue, thesituation is being exploited by miscreants, scaring away the peaceloving workforce which has settled in both Bengaluru and Chennaifrom all over the country and even abroad,” he added.
According to ASSOCHAM, widespread loss would accrue to IT andITES facilities due to poor attendance for the last several days.Besides, the inter-state tourism, articularly involving pilgrims,domestic travellers, has been affected. Cancellation of air ticketshave also been reported to and from Bengaluru.
Likewise, industrial production, movement of cargo and retailtrade including malls, cinema halls, restaurants, have been halted.”All these losses would run between Rs 22,000 crore and Rs 25,000crore, besides of course immense damage to the goodwill of the stateas an attractive investment destination” it said
ASSOCHAM urged the Centre to effectively monitor the situationand ensure that peace is restored in the two states. ”A lot ofdamage has already been done to the trade and factory output withmovement of the vehicles hit by the agitation which is takingviolent shape. There is a huge stake for the country’s showpieceinformation technology in both Bengaluru and Chennai.”