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Analysis: Rains To Cost India Billions
New Delhi, India (UPI) Aug 02, 2005 India had suffered financial losses of $1 billion following torrential rains that have lashed Bombay, the country's business hub, since last week, and the damage is likely to rise after fresh downpours Monday, Indian industry analysts said. "The collective tab of the financial loss is estimated at anywhere up to $1 billion," said the Federation of Indian Chambers of Commerce and Industry, a leading confederation of Indian industries. "Mumbai alone lost business income of about Rs 450 crores ($103 million) and the death toll rose to 891 since floods hit the city." It said a clearer picture would emerge later this week and insurers were expected to be hit by a tide of claims. Although fresh rains again hit the city now called Mumbai, insurance companies indicated claims were likely to be made in four areas. Motor insurance claims were expected to top the list. Claims were also expected from shops and establishments. Heavy rains in Bombay and other parts of western Maharashtra state affected Indian blue chips such as Reliance Industries and Bombay Dyeing. Reliance had to shut their plants at Patalganga in Raigad district of western Maharashtra, fearing water flooding. The power-loom sector is among other worst affected as most units were uninsured. Heavy rains again lashed Bombay Monday, inundating low-lying areas and disrupting rail and air services. Fresh rains have thrown the city's suburban railway service out of gear and flights from the city's domestic airport have been cancelled due to poor visibility. "Heavy rains in catchment areas saw water levels rise in dams close to overflowing," state Water Resources Minister Ajit Pawar said. The State government declared a holiday in educational institutions after warnings that heavy rainfall would continue Tuesday. Attendance in banks and offices was thin as workers stayed home. Bombay registered a record high of 949 millimeters rainfall on July 26 that forced the closing of the stock market, banks, offices, schools and other institutions. "The death toll may rise while the disaster could cost $1 billion," said senior government officials engaged in rehabilitation works. Maahrashtra state Chief Minister Vilasrao Deshmukh announced Sunday the stock exchange and banking system will remain open. "There is no problem with the financial market," he said. He said the state administration had ordered police, civic officials and medical teams to be deployed in areas prone to flooding. The Maharashtra State Electricity Board, the government-run power supply unit, restored power supplies to 80 percent of the affected areas. The Board supplies power to all parts of the state, barring Bombay. Deshmukh said the government was seeking to ensure supplies reach those who are still waiting for relief. Residents of Bombay's suburbs took to the street Friday demanding restoration of power. Reliance Energy is the major power supplier in Mumbai. The company had disconnected supply of power after torrential rains lashed the city. The company, however, told the administration it would restore supply by the evening. Meanwhile, industry bodies have begun totaling financial loss caused by the rains. "With no let up in the monsoon's fury, rail, road and air links have been totally snapped following the collapse of these services because of rains," said Mahendra K. Sanghi, president of Associated Chambers of Commerce and Industry. He said manufacturing activity in Bombay and Pune, another of the state's big cities, have come to a stop. FICCI expressed hope restoration work would be mounted on a war footing so trade between the affected region and other parts of the country could be restored and losses minimized. All major commodity markets, including bullion, oils, metals, sugar and grains remained closed due to the rains. The foreign exchange market was also closed. The torrential rain could have adversely affected India's business continuity had it not been for alternative data back-up centers set up by financial organizations in other parts of the country, particularly Bangalore, India's information technology hub, located in the southern state of Karnataka. "The database centers in other parts of country protected over Rs 10,000 crores ($2.3 billion) of business, said Srinivas Pothapragada, a senior official with a Bangalore-based data center. Related Links SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express
New Flood Warnings As Heavy Rains Continue To Pound India's Financial Hub
Mumbai, India (AFP) Aug 02, 2005Heavy monsoon rains continued to pound India's financial hub of Mumbai and the surrounding state early Tuesday as officials issued fresh flood warnings and the death toll neared 1,000. |
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