Cauvery water row: ASSOCHAM estimates loss due to violence at Rs 25,000 Crore

Bengaluru: The ongoing agitation on Cauvery water sharing issue in Karnataka had resulted in an estimated loss of Rs 22,000 to Rs 25,000 crore, according to Industry body ASSOCHAM. In a release here today it said violence and the weeklong agitation across Karnataka had led to damage vital urban infrastructure,interruption in the transport, including, roads, rail and air and inability of the workforce to safely move to and from offices and factories.

'Violence in the state capital and other parts of Karnataka has severely dented the image of Bengaluru as Silicon Valley of India, home to almost all the Fortune 500 companies,' said ASSOCHAM while making a fervent appeal for peace in both Karnataka and Tamil Nadu. 'The way the violent incidents had 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,' said the ASSOCHAM Secretary General, D S Rawat. 'The authorities in Karnataka and Tamil Nadu should not allow under any circumstances the law and order to be compromised.

While the water is a basic requirement and an emotional issue, the situation is being exploited by miscreants, scaring away the peace loving workforce, which has settled in both Bengaluru and Chennai from all over the country and even abroad,' he added. According to ASSOCHAM, widespread loss would accrue to IT and ITES facilities due to poor attendance for the last several days.

Besides, the inter-state tourism, particularly involving pilgrims, domestic travelers, has been affected. Cancellation of air tickets have also been reported to and from Bengaluru. Likewise, industrial production, movement of cargo and retail trade, including malls, cinema halls, restaurants, have been halted. 'All these losses would run between Rs 22,000 crore and Rs 25,000 crore, besides of course immense damage to the goodwill of the state as an attractive investment destination' it said ASSOCHAM urged the Centre to effectively monitor the situation and ensure that peace is restored in the two states.

'A lot of damage has already been done to the trade and factory output with movement of the vehicles hit by the agitation which is taking violent shape. There is a huge stake in the country’s showpiece information technology in both Bengaluru and Chennai.' (UNI)