Burnt down: Biz takes a beating, loss at Rs 400 cr

Sudhakar Rao / TNN / May 5, 2006, 01:29 IST

Share

AA

Text Size

Small
Medium
Large

The riots have come as a huge setback for the Vadodara business community.

Burnt down: Biz takes a beating, loss at Rs 400 cr

VADODARA: The riots have come as a huge setback for the Vadodara business community, which had barely recovered from the 2002 violence. The violence may have been limited to the walled city east of Vishwamitri river, but the impact was felt on the west as well.
Given that the walled city is a hub for wholesalers, traders estimate the loss at around Rs 400 crore.In the last four days, rioters burnt down 17 factories, 29 shops, 33 vehicles and 20 houses.
Says Paresh Parikh, convener of Vadodara Vyapar Vikas Association (VVVA), "We don't suffer losses only when shops are burnt. Shops remaining shut has a huge impact as well."
The booming service industry, mostly located in the western part of the city, has not been left untouched as most shops and restaurants saw fewer customers.

Occupancy rates dropped by up to 40% in most hotels, and restaurants suffered as travellers, especially businessmen, preferred to stay away.
"Till Sunday, business was going full steam. But from then on, there has been a drastic reduction of about 60% in our restaurant business," says Ajit Nair, general manager of Revival Hotel, located at Kala Ghoda Circle.
Several small and big companies located within the city recorded abysmally low attendance. Most workers could not come as they were from the walled city, where curfew was clamped.

"Our units at Sarabhai Chemicals Ltd, including Symbiotics, Sarabhai Research Centre, Sarabhai Bulk Drugs are registering very poor attendance," said R N Mehta, industrial relations manager.
"In the last three days, companies in and around the city have incurred losses of around Rs 15 crore due to absenteeism," says Paresh Rawal, secretary general of Federation of Gujarat Industries (FGI).
Investors are not only likely to shy away from future investment, the existing industry may also take a hit, say industry experts.
At the Vadodara Stock Exchange, business fell by around 20%, given the clearing house is with SBI based in the sensitive Mandvi area, still under curfew.
Said stock broker Jagdish Thakker, "Day-traders were not affected given that they do most of their business online, but delivery-based investors were left high and dry because cheques were not being cleared. The SBI only cleared high value cheques."
On Thursday, FGI submitted a memorandum to district collector Rajiv Topno, asking him to take immediate steps to control riots.

End of Article

FOLLOW US ON SOCIAL MEDIA