Chennai Deluge to cost Rs.15,000 crores-ASSOCHAM

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Chennai-Deluge-to-cost-15,000-crores-ASSOCHAMOne of the important South Indian cities is submerged in rain water flooding and the news for more than a month now. Issues mushrooming due to the immutable wild downpour are many-loss of lives around 300 dead, homeless struggles, hunger and unavailability of essentials are primary ones. Damage to city infrastructure, utter collapse of communication and transportation modes and stoppage of all businesses are likely to dent deeper. Reports indicate that the worst situation is an outcome of the severe climatic changes happening around the globe coupled with the wrong planning from the city’s development authorities. The condition is largely blamed on the civil authorities as not much was in place even after an alarming 10 year record of unseasonable rains within the metro limits.

Going by the data that is been generated from global media it seems that the city which is an epicenter of business for most of the production and manufacturing entities has drowned beyond all estimates.

Chennai is well known for its factories and tech companies prefer it just second to Bangalore. Moreover, it houses many of world’s big brands in automobiles and telecom (handsets) industries. Due to the rain havoc the city’s lifestyle has come to a standstill and the governing authorities are reeling to overcome the limitations.

According to the latest from ASSOCHAM (Associated Chambers of Commerce and Industry of India)-the forgettable episode is likely to incur a loss of a whopping 15,000 crores ($2.25 billion). Being the house for several multinational companies-everyone of it is likely to bare losses as the stretch of November up to December 3rd saw heaviest rains in the last 100 years.

Businesses and their problems due to the Chennai downpour

Most of the Information Technology (IT) companies have been forced to shut their operations. Firms like Infosys, Tech Mahindra and Cognizant have worked out and activated their “business continuity plan” in order to keep up their critical projects going. Clients from all over the global have expressed their concerns and they are too working on alternatives providing the much-needed time frame concession. Companies have shifted their selective staffs to workplaces in the neighboring states which will enable uninterrupted client support systems.

Talking pf the automotive companies like Eicher: maker of Royal Enfield, Nissan, Renault, BMW, Ford and others are not as lucky as the IT companies. Total shutdown is the only choice that these auto companies have to deal with. Share values of many entities have flunked big time creating losses which were least expected.

TVS Motors- which is a front running 2 & 3 wheeler manufacturer has suffered a sales loss of at least 15,000 units in just past few weeks. Hence, its share value came down by 5% as pf December 3rd. Ashok Leyland which has a robust plant at Ennore faces similar testing times as 40% of its total production capacity is hit.

As the supplies of essentials get hit, prices have skyscraped-milk, a liter is selling for Rs100+ #ChennaiFloods

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Government acts:

The government in the state is putting in its best efforts to fight over the natural destruction. Honorable Prime Minister Mr. Narendra Modi himself has taken stock of the mis-happenings and announced an immediate relief fund worth 1,000 crores ($150 mn). It is reported that this is a second provision on top of a 940 crores package which was released earlier. The inflow of funds should be handy in controlling the illegitimate price-rise of basic commodities that has creeped up.