The unbelievable chaos that ensued in the whole of last week in Mumbai is a reminder that the infrastructure of Mumbai, a city that contributes more than 50 per cent of the country's tax revenues (direct and indirect) is in need of urgent overhaul.

Not very long ago the Indian government unveiled a hugely ambitious $-billion plan to turn the city into a 'new Shanghai' (Maharashtra chief minister Vilasrao Deshmukh's vision for Mumbai). But the downpour that resulted in marooning the entire city led to many people likening it to the canal city of Venice.

"With power and water supply cut off and public transport totally in shambles, Mumbai looked closer to the banana republics of Africa than a city trying to become a London (Think tank Bombay First's vision for the city during the '90s) or a Shanghai in the future," joked a corporate head who declined to be named.

As the BSE sensex continues on its mind boggling flight past the 7700-mark mainly on the back of excellent corporate results, corporate chiefs say they expect a production loss of at least a week due to the rains and admit that second quarter performance will be affected as a result.

An earlier report of the Federation of Indian Chambers of Commerce and Industries (FICCI) had estimated economic losses in Mumbai at Rs246 crore per day if all manufacturing activities and services were to be suspended.

The rain that poured down on Tuesday and most of Wednesday last week not only suspended all manufacturing activities and services but also damaged property and lives leading analysts to estimate loss of property between Rs1,000 to Rs2,000 crore.

The government of Maharashtra has estimated the damage caused by flooding at Rs500 crore ($192 million) while the Associated Chambers of Commerce and Industry of India estimates losses at twice that estimate at Rs1,000 crore ($384 million). The loss to the entire state caused by the rain havoc has been estimated at around Rs3,000 crore by the economic monitoring cell of the Indian Merchant's chamber. In addition standing crops worth an estimated Rs500 crore were destroyed and livestock worth Rs600 crore affected.

Among the larger industrial sector units, Reliance Industries' intermediates and chemicals manufacturing complex at Patalganga and Asahi India Glass' operations, both in the Raigad district, were shut down due to flooding.

Public sector oil major Bharat Petroleum Corporation had to cut production at its refinery in North-east Mumbai, the only petroleum refining facility in the city, due to a breakdown in road transport.

Industrial units located in Kalyan and Bhiwandi on the outskirts of Mumbai were paralysed.

While the incessant downpour forced industrial units to shut down, the government currency, bond and foreign exchange markets suffered from the communication lines being snapped. The city airports had to shut down for two days in a row affecting domestic and international flight schedules.

As insurance companies brace up to receive claims, they say the losses in Maharashtra are at least five to six times greater than during the Gujarat floods last month. Insurers are expecting a barrage of claims by the end of the week and no one is hazarding as to what it will be.

Motor insurance claims are expected to be the highest; insurers also expect claims from the retailing community (shops and establishments) as well those industries, whose machinery and stock have been affected by the floods.

Sources said the worst affected are the numerous powerloom units located in Bhiwandi. These units are now facing serious losses with raw material such as yarn being swept by the flash floods. Apart from the textile industry, pharmaceutical companies, which have godowns in the Kalyan belt, have also been affected.

The 944.2mm (three feet of rain) that poured down on the city in 24 hours ending Wednesday July 27^th was the highest that has ever been recorded in a single day in India. According to reports Cherrapunji in Assam, known as the place with the highest rainfall in the world, has till the Mumbai floods, held the record for the highest rainfall in 1910.