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 27th 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.
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