Cauvery Violence Mars Bengaluru Image; Assocham Pegs Business Loss at Rs 25K Cr

Bengaluru: Apex industry body Assocham expressed its deep concern over the violence in Bengaluru and other parts of Karnataka and Tamil Nadu over Cauvery water dispute. The ongoing violence in the city not only disturbed day-to-day life and business activity, but also damaged the clean image of Bengaluru on the global business platform. Assocham has estimated the loss at Rs 25,000 crore due to Cauvery dispute related violence. In addition to this, Cauvery violence caused an immense damage to the goodwill of the state as an attractive investment destination. The industry body has also requested the Centre to effectively monitor the situation and ensure that peace is restored in the two states.

The violence in the city has not only caused widespread damage to the vital urban infrastructure, but also interrupted the transport facilities for citizens and businessmen. The disruption of transport facilities including roads, rail and air has impacted daily life and business activity in Karnataka and more particularly Bengaluru city.

Assocham said: “Violence in the state capital and other parts of Karnataka has severely dented the image of Bengaluru as Silicon Valley of India, home to almost all the Fortune 500 companies. Bengaluru and Chennai have significant contribution to the country’s IT sector.”

Assocham has called for restoration of peace in Karnataka and Tamil Nadu. DS Rawat, Secretary General, Assocham, said: “Violence in the state capital and other parts of Karnataka has severely dented the image of Bengaluru as Silicon Valley of India, home to almost all the Fortune 500 companies. The way the violent incidents had spread is demoralizing the business and industrial community, particularly in the capital city of Karnataka. The image that India built around Bengaluru as its ‘Silicon Valley’ is being sullied.”

Rawat further said that the authorities in both the states should act without compromise. Since water is basic requirement of human life and an emotional issue, miscreants can easily exploit this aspect to create violence in peaceful cities like Bengaluru and Chennai, observes Rawat.

Assocham further forecasts that major loss would accrue to IT and ITeS industry due to poor attendance for the last several days as people not in a position to travel or come onto streets. In addition to this, the inter-state tourism, particularly involving pilgrims, domestic travelers, has been affected. Cancellation of air tickets has also caused huge loss to the airlines.

Retail activity came to standstill as malls, cinema halls, restaurants, shops have been halted. The industrial production and movement of cargo were totally affected. Considering the loss across all the industry verticals, the total estimated loss would be between Rs 22,000 crore and Rs 25,000 crore, said Assocham. .

Assocham further said: “At a time when India is selling itself as the fastest growing economy in the world, the country can’t afford such violence which is taking place in the Bengaluru and Chennai. The two states have built with a lot of hard work image of progressive areas, which should not be compromised at any cost.”