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Chennai floods may cause financial losses of over Rs15,000 crore: Assocham

Assocham has urged the central government to immediately announce relief and rehabilitation package and come to the rescue of residents and the industry in Tamil Nadu in this hour of extreme crisis. Photo: ReutersPremium
Assocham has urged the central government to immediately announce relief and rehabilitation package and come to the rescue of residents and the industry in Tamil Nadu in this hour of extreme crisis. Photo: Reuters

Not only are trade, industry and other commercial activities being hit, but common individuals are also bearing heavy financial loss to their properties: Assocham

Chennai: The Associated Chambers of Commerce and Industry of India (Assocham) on Wednesday estimated that the financial loss due to the rains may exceed 15,000 crore with Chennai and several parts of Tamil Nadu coming to a virtual standstill after heavy rains and severe flooding.

“Unprecedented torrential downpour in Chennai and other parts of Tamil Nadu has led to total chaos, thereby creating an atmosphere of uncertainty and panic not only for the trade, industry and other commercial activities but especially amid common individuals who are bearing heavy financial loss to their properties," said D.S. Rawat, secretary general of Assocham, in a statement.

Small and medium enterprises, automobile and engineering industries, information technology (IT), ITeS, textile, tourism and a host of other sectors have been badly affected by the massive rainfall.

Most auto companies, including Ford, BMW, Renault India Pvt. Ltd, Hyundai Motor India Ltd and India Yamaha Motor Pvt. Ltd stopped production from Tuesday afternoon.

IT companies, as part of their business continuity plan, shifted some of their employees who handle critical projects to other locations. Hewlett Packard Global Soft Pvt. Ltd, Accenture India, Tata Consultancy Services Ltd (TCS), Cognizant Technology Services and others have been closed since Tuesday. Offices of companies such as Infosys Ltd were also flooded.

“Urbanization and unplanned growth are the main contributing factors for floods in Chennai which is also a lesson for both upcoming and existing metros like Delhi, Bengaluru, Mumbai and others as any negligence or ill-preparedness might invite trouble in a similar manner or may be even worse than this," said Rawat.

Assocham has urged the central government to immediately announce relief and rehabilitation package and come to the rescue of residents and the industry in Tamil Nadu in this hour of extreme crisis.

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