Torrential rains have lashed Gujarat since the beginning of this month. districts have suffered serious damage as rivers have overflowed, dams have leaked and the problem of waterlogging has persisted. Many places have also suffered flood-loke situations. So far, the state has already received over 50% of the average seasonal rainfall of 850 mm. Unfortunately, the losses due to damage will actually be long-lasting as the state’s thriving industry has also been affected.
Gujarat has a massive manufacturing and processing industry, which largely comprises micro, small and medium enterprises (MSMEs). Overall industry losses due to heavy rainfall are estimated between Rs5,000 and Rs6,000 crore. According to sources, the industry in Ahmedabad alone will book a loss of Rs 1,000-1,200 crore. Industry in South Gujarat, which has industrial hubs like Surat, Vapi, and Navsari, will see a loss to the tune of Rs2,000 crore. A similar impact is expected in the eastern and northwestern Saurashtra regions.
Rains have affected the transport industry and this has made it difficult to supply necessary raw materials to the factories. As such, many MSMEs are facing a shortage of fuel such as lignite. Sources say that flooding in Kutch has seriously affected the loading and dispatch of lignite on trucks. The supply of lignite has dropped by nearly 60% due to flood-like situations, waterlogging, damaged routes, and other rain-related reasons. This is an important fuel for industries across sectors, like textile and chemical, and its shortage has cut down production by half.
Meanwhile, the Gujarat Chamber of Commerce and Industry (GCCI) has said that it was in the midst of surveying the extent of the loss the sectors would suffer. Furthermore, GCCI has also revealed that has written to the Insurance Regulatory and Development Authority of India (IRDAI) for help. GCCI has asked the IRDAI to instruct insurance companies to release at least 75% of claim disbursals immediately and release the rest after paperwork.
