Assocham estimates impact at Rs 2,000 cr

Finance Minister P Chidambaram today said he did not see "a great fiscal impact" of the tsunami tidal wave that rocked south India on Sunday. He, however, added that it was too early to assess the damage.

Chidambaram said India was well equipped to manage the situation and funds would be made available as and when required. "We can manage the crisis and money needed to manage it will be found," he told reporters at the sidelines after inaugurating the 77th annual general meeting of the Federation of Indian Chambers of Commerce and Industry (Ficci).

In the first estimate of the damage, Assocham today said that based on feedback from its affiliated chambers like Madras and Cochin Chamber of Commerce, Federation of AP and Karnataka Chambers of Commerce, the loss could be estimated at over Rs 2,000 crore.

"The losses estimated for Andaman and Nicobar Islands exceed Rs 1,000 crore. Over losses in Tamil Nadu and states such as Pondicherry, Kerala, Karnataka and Andhra Pradesh have been estimated at Rs 800 crore," Assocham said in a statement.

Assocham chief Mahendra K Sanghi said neither manufacturing nor any other economic activity was going to be adversely affected due to tsunami barring the shipping industry and tourism in Kerala and in the Andaman and Nicobar Islands.

Three ships had been damaged in the Chennai port, while the major part of Port Blair had been severely damaged, he added.

Meanwhile, the department of telecommunications is rushing in special teams to southern states and the Andaman and Nicobar Islands to help Bharat Sanchar Nigam Ltd and other private-sector telecom operators in restoring the communication network in the tsunami- affected region.

According to an impact assessment presented to the crisis management group, 12 exchanges in Tamil Nadu and two in Kerala have been damaged. In the Andaman and Nicobar Islands, eight satellite stations are out of commission, though communication with the exchange in Port Blair has not been disrupted.

The circle managers were working overtime in assessing the damage and restoring the system, wherever possible. "The basic emphasis is on restoration of lines within the shortest possible time," said a telecommunication department official.

"In certain places, even basic equipment is difficult to trace," the official said. The problem has been compounded as some of the areas are still inaccessible, he added.

The country's oil sector, initial reports suggest, has not been affected significantly. The tidal waves touched the Oil and Natural Gas Corporation's Karaikal fields in Pondicherry but did no damage. Officials said communication and transport links were restored last Sunday night. Work that had come to standstill started again at around 10.30 am.

Indian Oil Corporation reported no damage to its properties in Sri Lanka, the country worst affected by the tragedy.