Gujarat industry estimates over Rs 5,000 crore losses due to heavy rain

Stakeholders of industry in Gujarat have estimated losses of around Rs 5,000-6,000 crore, even as the state government surveys the impact of torrential rain and floods in several parts.

According to the Gujarat Chamber of Commerce and Industry (GCCI), heavy rainfall leading to flooding and disruption of goods movement and factory production have been severe in southern, western and parts of central and northern Gujarat.

Heavy rains have already caused 207 major dams and reservoirs — including the Sardar Sarovar Dam — in the state to reach over 50 per cent capacity, according to a state government communique. Of these, 42 dams and reservoirs are either 100 per cent full or overflowing, leading to the state government issuing high alerts.

On July 10 alone, several parts of Ahmedabad were inundated with the city receiving a record 115 mm rainfall in just three hours. The Indian Meteorological Department (IMD) had forecasted heavy to very heavy rainfall in Ahmedabad and other parts of Gujarat for the last week. Already, Gujarat has received over 50 per cent of the average seasonal rainfall of 850 mm.

“The industry had earlier estimated losses to the tune of Rs 1,000-1,200 crore in Ahmedabad alone. With southern Gujarat, especially industrial centres like Surat, Vapi and Navsari, continuing to be battered by heavy rains and flooding, the losses could be even higher at Rs 2,000 crore. In addition, western and northwestern Saurashtra regions, too, may have seen similar impact,” said Pathik Patwari, president of GCCI, estimating the total losses in these regions at a cumulative Rs 5,000-5,200 crore.

Similarly, transporters in the state, too, have estimated a loss of more than Rs 500 crore during the July 11-16 week. According to Akhil Gujarat Truck Transport Association president Mukesh Dave, this is not only due to rains across cities and interiors of Gujarat damaging roads but also because more than 5,000 trucks were stuck on highways in parts of Maharashtra and south Gujarat.

“The turnaround of trucks has been disturbed with inter-state movement between Maharashtra and Gujarat getting delayed by an average of three to four days due to rains, water logging and even landslides in crucial places like Dharampur and Saputara in Gujarat through which the north-south corridor passes. The freight transport in Gujarat alone could be facing losses of over Rs 500 crore,” said Dave.

Several micro, small and medium enterprises (MSMEs) have also been impacted by a lack of fuel such as lignite. “With flooding in Kutch, there has been hardly any loading of lignite on trucks and dispatches, and connectivity between Kutch and rest of Gujarat has been hampered. Overall, the Mumbai-Ahmedabad route sees on average 11,000 trucks a day but 50-60 per cent of movement was hampered last week. With rainfall subsiding now over the weekend, things are getting back to normalcy since Monday,” Dave added.

According to Jitu Vakharia, president of South Gujarat Textile Processors Association, with lignite mining taking a hit due to heavy rainfall this year, more than 1,000 textile, chemical and other units that use the fuel across cities like Surat, Ahmedabad and Bharuch have seen a decline in production.

“Gujarat Mineral Development Corporation, which is the major supplier of lignite, has not been able to dispatch due to heavy rains last week (July 11-17) thereby impacting production of units across sectors,” Vakharia added.

On its part, GCCI has written to the Insurance Regulatory and Development Authority of India to direct general insurance companies to release at least 75 per cent of claim disbursals immediately and release the rest after paperwork and review is over. “Moreover, given the extent of the impact of rains, we have also requested for more surveyors to be deployed for quicker assessment of losses for swift claim disbursals,” Patwari added.

However, according to S G Savalia, principal and dean-agriculture of Junagadh Agricultural University, a detailed survey of the state government is awaited for assessing the impact on crops. “Wherever pre-monsoon sowing has taken place, especially in crops like groundnut, and where there hasn’t been any flood-like situation, the rains have been largely beneficial. Nonetheless, the real impact would only be known when the government completes its survey,” Savalia added.

Prime Minister Narendra Modi has, meanwhile, assured assistance to Gujarat, while Chief Minister Bhupendra Patel carried out an aerial survey of Chhota Udepur and Narmada districts recently.