Home Latest News Cauvery dispute causes Rs 25,000 cr loss to business: ASSOCHAM

Cauvery dispute causes Rs 25,000 cr loss to business: ASSOCHAM

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With widespread damage to the vital urban infrastructure, interruption in the transport including, roads, rail and air and inability of the workforce to safely move to and from offices and factories, Karnataka , particularly Bengaluru city, is estimated to have suffered a loss between Rs 22,000-25,000 crore due to related violence, apex industry body said.

Cauvery dispute causes Rs 25,000 cr loss to Business: ASSOCHAM
violence in the state capital and other parts of Karnataka has "severely dented" the image of Bengaluru as the Silicon Valley of India

The industry body further said that violence in the state capital and other parts of Karnataka has “severely dented” the image of Bengaluru as the Silicon Valley of India, which is home to many of the Fortune 500 companies.

According to ASSOCHAM, widespread loss would accrue to IT and ITES facilities due to poor attendance for the last several days. Industrial production, movement of cargo and retail trade including malls, cinema halls, restaurants, have been halted because of wide-spread agitation.

Leading Bengaluru-based companies like TCS, Infosys, Flipkart and Amazon kept their
offices shut yesterday.

“All these losses would run between Rs 22,000 crore and Rs 25,000 crore, besides of course immense damage to the goodwill of the state as an attractive investment destination,” ASSOCHAM said in its papers.

“The way the violent incidents had spread is demoralising 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,” Assocham Secretary General D S Rawat said.

Meanwhile, after a day of widespread clashes and violance and claiming two lives, Bengaluru today sememd crawling back to normalcy. Shops were opened, and traffic resumed after day of the violent clashes.