Industry body ASSOCHAM on Wednesday estimated losses suffered by Karnataka due to the violence sparked by the Cauvery water dispute between Rs 22,000 crore and Rs 25,000 crore.
The violence had resulted in damage to infrastructure, affected mobility, and forced shutdown of offices and factories, leading to the massive losses.
Violence in the state capital and other parts of Karnataka has severely dented the image of Bengaluru as the Silicon Valley of India, home to almost all the Fortune 500 companies.ASSOCHAM
ASSOCHAM made a fervent appeal for peace in both Karnataka and Tamil Nadu.
The way the violent incidents spread is demoralising the business and industrial community, particularly in the capital city of Karnataka. The image that India built around Bengaluru as its Silicon Valley is being sullied.DS Rawat, ASSOCHAM Secretary General
Rawat added that the authorities in Karnataka and Tamil Nadu should not have allowed law and order to be compromised “under any circumstances”.
“While water is a basic requirement and an emotional issue, the situation is being exploited by miscreants. This is scaring away the peace-loving workforce which has settled in both Bengaluru and Chennai from all over the country and even abroad,” he added.
The industry body’s report said that the losses increased as there was poor attendance in private companies and Inter-state tourism took a hit.
ASSOCHAM attributed the losses to decreased industrial production, non-movement of cargo and shut malls, cinema halls and restaurants.
All these losses would be between Rs 22,000 crore and Rs 25,000 crore, besides, of course, the immense damage caused to the goodwill of the state as an attractive investment destination.ASSOCHAM
The ASSOCHAM report stated:
A lot of damage has already been done to the trade and factory output with movement of vehicles being hit by the agitation, which is taking a violent shape. There is a huge stake for the country’s showpiece information technology in both Bengaluru and Chennai.
The report also condemned the violence brought on by the shutdowns. It said that the state’s machinery should have been prepared well in advance as the strife might hurt the country’s status as the fastest-growing economy.
While we are selling ourselves to be the fastest growing economy of the world, we cannot afford the incidents which are taking place in the metropolitan cities. After all, the two states had built with a lot of hard work the image of progressive areas, which should not be compromised at any cost.
Meanwhile, the tempo drivers’ association in Tamil Nadu has demanded compensation from the Karnataka government to cover the losses they incurred in the last one week.
Tamil Nadu Chief Minister J Jayalalithaa, in her letter to her Karnataka counterpart Siddaramaiah, cited the burning of 40 buses, 45 lorries and many other vehicles with Tamil Nadu registration by mobs in Karnataka.
Bus owners from Tamil Nadu demanded Rs 75 crore from the Karnataka government as compensation for 42 buses gutted by miscreants in Bengaluru, reported Bangalore Mirror.
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