Surat rain losses at Rs 1500 cr

Torrential rains, which have lashed Surat for nine consecutive days, have crippled the city's economy, with the industry suffering losses of an estimated Rs 1500 crore.

"Surat, the hub of the textile industry, has been badly hit by the continuous rains. The daily production of Surat's textile industry is Rs 200 crore, but this has witnessed a 25 per cent fall in the last nine days, mainly on account of water logging," Dilip Chasmawala, president, The Southern Gujarat Chamber of Commerce & Industry (SGCCI), said.

"The textile industry has suffered production losses to the tune of Rs 400-500 crore in the last nine days, which is in addition to material and physical losses of a few crores," he said.

"With no delivery of goods taking place because of disruption of railway traffic and submerged roads, the industry has literally come to a halt," the chamber president added.

The diamond industry has also suffered heavy losses. "Exports of diamonds have literally come down to zero in the last nine days. This has resulted in losses of hundreds of crore," SGCCI vice-president Pravin Nanavati, said.

"According to our estimates, the diamond industry has accumulated losses in the region of Rs 900-1000 crore in the last nine days.

"It would be some days before the production returns to normal, and it would not be surprising if the industry's losses increase by a few hundred crores by then," he informed.

According to another office bearer of the chamber, hundreds of jari units have been flooded by rain water, which has resulted in considerable damage to machinery and raw material. The jari industry has suffered losses of Rs 20-25 crore, he said.

What is worse for the industry is that these losses cannot be recovered.

"Production losses of two or three days can be made up, but it is difficult to make up losses suffered over a longer period," an industry watcher said.

A prominent citizen of Surat, who did not wish to be named, blamed local bodies and the state government for the grim situation in the city.

"Surat witnessed devastation running into hundreds of crores of rupees on account of the floods last year. However, neither the Surat Municipal Corporation nor Surat Urban Development Authority nor the state government took any precautions this year," he said.