Economy

Telangana strike: Assocham puts loss at Rs 10,000 cr

M. Somasekhar Hyderabad | Updated on March 12, 2018 Published on September 28, 2011

telangana   -  Business Line

What is the loss incurred by the State due to the ongoing general strike in the Telangana region of Andhra Pradesh?

According to Assocham, the tangible loss of goods and services in the past 15 days would be in excess of Rs 10,000 crore.

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), on the other hand, estimates the loss at an average of Rs 150 crore a day. In addition, the industry alone will lose Rs 1,000 crore a day in the last few days, when the industry has also come under strikes from the pro-telangana groups.

For the first 12 days, the focus of the separatist movement has been getting various sections of the people into the strike scenario, under what is called ‘ Sakala Janula Samme'. Since September 25, industry, especially the thousands of SMEs (Small and Medium Enterprises), have been hit with strikes and power cuts.

The major loser so far has been the Singareni Collieries Ltd, the state-owned coal miner, which has been paralysed with over 90 per cent of its 65,000 strong workforce striking work since September 12, when the Telangana Joint Action Committee (TJAC) had got into the general strike mode. The daily production of 1.5 lakh tonnes has dropped to less than 10,000 tonnes per day on average.

The starving of coal to power plants, which in turn have reduced output, is having a cascading impact on a broad range of industries across the State.

Next, in line is the State road transport department, which has seen complete withdrawal of its services in the Telangana districts for nearly 10 days now. This is followed by the education, hospitality, IT, manufacturing, retail sectors, which are losing by the day.

The opportunity losses could be even higher, says Assocham. The strikes have lead to frequent power outages and transport is at a standstill. This has pushed up industrial costs by over 15 per cent and dented the State's image as a lucrative investment destination.

Published on September 28, 2011
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