Rains hit industrial estates in Chennai

Incessant rains during the last two days in Chennai and suburbs have created havoc in the city's two key industrial estates resulting in huge production losses for manufacturers. Consequently, the associations representing the manufacturers plan to approach the government for help in the form of tax deferrals.

The heavy downpour has caused problems for the production units all around. Due to the diversion of floodwater towards Guindy Industrial Estate to ensure smooth traffic flow in the nearby Kathipara junction, over 40 units were inundated in the estate.

The problems compounded as power was disrupted and the road conditions were dampened.

President of the Guindy Industrial Estate Manufacturers' Association, K Gopalakrishnan, told Business Standard that the estate was badly affected by the rains and a large part of the estate was in water due to poor drainage.

Blaming the officials for diverting the floodwater towards the estate, he said that it had resulted in shutting down operations and huge production losses. People had to wade in about three-feet deep water in most of the areas of the estate.

Lack of effective storm water drains in Alandur, Adambakkam and St Thomas Mount resulted in the roads getting inundated near Kathipara Junction, he added. Stating that the industrial estate was facing power crisis over the last 20 days, he said that power had been restored for 75 per cent of the units. Power supply was disrupted to the estate during the last two days since the grid point at K K Nagar, which supplies power to the estate, was flooded.

The south phase (developed plots) of the estate was also badly affected. The officials were struggling to pump the flood water out.

He said that the association was in the process of analysing the production losses from the units in the estate and the total estimated losses would be revealed in the next couple of days.

The situation was similar in Ambattur Industrial Estate, located north of Chennai city. Many blocks, especially the north phase of the estate and roads were inundated.

The north phase suffered severe damages and the current estimation of the production losses at the units is around Rs 30 crore and it is likely to be around Rs 100 crore as about 150 manufacturing and export units, including dye-casting, fabrication and printing units, have shut down their operations for one week.

These units have given a week off to their employees as most of the areas were inundated with flood water.

President of the Industrial Estate Manufacturers Association, K P Shashidhar Rao said that rainwater entered the shop floors of units and has damaged materials. It would take at least one week for those units to resume operations, he added.

He said that the association would be making a request to the Centre and state governments for deferral period of 2-3 months for sales, excise and other tax payments.

A couple of units also blamed the authorities for not maintaining the storm-water drains properly in the Ambattur industrial estate.