• PAGE ONE
• INDEX
• HOME

Business takes a back seat

Our Bureau

BANGALORE, Aug. 1

FOR the second day today, the city of Bangalore, home to several multinationals and the IT industry, continued to reel under a fear psychosis, as supporters of the veteran matinee idol Dr. Rajkumar, called a bandh in the State, following his kidnapping b y the sandalwood smuggler, Veerappan, on Sunday night. The reaction in trepidation had its impact on the State's economy as almost the entire business establishments had declared an informal closure for the second day.

Although the CII has not been able to ascertain the loss in production, the industry will sustain, says Mr. Ravi Uppal, President of the CII, Karnataka. He was quick to point out that the trouble ``could not be anticipated. This was an emotional reaction to the kidnapping of a popular personality, but otherwise, the law and order is good in the city''.

This was ``a mass reaction and the incidents have been sporadic, but otherwise the crime rate has fallen in the city and Bangalore is a very safe and secure city. Even at night, people can walk around in the city,'' he said in a statement.

The statement acquires special significance, as it was the CII which co-sponsored the Global Investors Meet, hosted by the State Government last month, where investments worth Rs. 27,000 crores poured in, following aggressive promotion of Karnataka by th e Government. One of the major selling points of the GIM was the State's good record in law and order.

The city, however, limped back to normalcy by evening, as shops which had downed shutters in the morning, were seen opening them. The streets, however, wore a deserted look as most of the business establishments were closed for the second day, mainly as a precautionary measure.

Several banks reported thin attendance and some foreign banks even closed transactions. All Citibank ATMs were closed. Stanchart kept its ATMs open, although transactions at its offices were closed.

Petrol bunks continued to remain closed, with no stocks coming in; the wholesale markets continued to be affected with prices shooting up for vegetables and other produce, as distribution was affected.

It is estimated that the film industry stands to lose Rs. 3 crores a day, following the decision of the Karnataka Film Chamber of Commerce to call a halt to all production, distribution and screening activities, until the release of Dr. Rajkumar.

Pic.: Kidnapp effect -- People queue up for petrol in Bangalore on Tuesday as most of the petrol pumps remained closed due to violence in the wake of Dr. Rajkumar's abduction.

Pic. credit: Saggere Ramaswamy