July 6, 2010 12:18 PM

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Bandh disrupts economic activities, Losses estimated Rs 13,000 crore

<br/>harat Bandh partially disrupted economic activities with commodity markets and the transport sector taking a hit in many parts of the country, and the industry pegged losses at up to Rs 13,000 crore.<br/><br/>While Mumbai, the financial capital of the country, and several industrialised states including Maharashtra, Gujarat, were affected, the impact was partial in many other states like Tamil Nadu and in the national capital Delhi. The 12-hour strike was called by the Opposition parties to protest the fuel price hike and rising inflation. <br/><br/>Industry chamber FICCI said in a statement the bandh is estimated to have cost the nation close to 13,000 rupees crore in terms of GDP loss. Another industry body Assocham put the losses at Rs 10,000 crore, while CII pegged it at Rs 3,000 crore.<br/>Wholesale commodity markets remained close in most of the cities, while several flights from key airports like Mumbai were cancelled. According to the All-India Motor Transport Congress, 6 lakh vehicles were off the road.<br/><br/>Though the screen-based stock market remained open, the trading volume at the Bombay Stock Exchange (BSE) was down 52 per cent to Rs 2,857 crore against a daily average of nearly Rs 6,000 crore.<br/><br/>According to reports by industry chambers like FICCI and Assocham, thin attendance was witnessed in commercial establishments in several states, while the economic activity came to a complete halt in states like West Bengal, Gujarat and Kerala. FICCI said most of the industrial activities remained shut in Bangalore and majority of MNCs and IT firms preferred to give a holiday to their employees. In Mumbai, transport services were completely affected and traders were mostly off the market.<br/><br/>The PHD Chamber catering mainly to the northern states, said the impact was felt in Rajasthan, Madhya Pradesh and UP. Banking services were completely paralysed in Left governed West Bengal and Kerala while some disruptions were noticed in Karnataka, Madhya Pradesh, Bihar and Mumbai.<br/><br/>The industry leaders including Rahul Bajaj and Adi Godrej have opposed the bandh and termed the protest as odd and absurd . The disrupted rail movement also contributed to the industry loss. <br/><br/>While the ruling Congress has claimed the Bharat- Bandh as a complete flop, the Opposition described that it was a grand success. Talking to reporters in New Delhi, the Congress party spokesman, Mr. Abhishek Manusinghvi accused the BJP and the Left run state governments of instigating violence. Calling the bandh as unconstitutional, he said that it does not provide any concrete solution to the problem of inflation. Defending the recent hike in fuel prices, Mr. Singhvi said that the increase has been minimal and most reasonable.<br/><br/>While claiming a complete success of the bandh, the NDA said that it will take-up the issue in the coming Monsoon session of Parliament. Addressing a joint press conference with JDU chief, Sharad Yadav, BJP President, Nitin Gadkari reiterated the demand of rollback of hike in petroleum prices in the larger interest of the public.<br/>The Left parties said that the response to the bandh should serve as a warning to the government not to heap burden on the people. Talking to reporters in New Delhi, the CPI(M) general secretary, Prakash Karat said that it is a message to the government to reverse its policy and roll back the prices of petroleum products. CPI leader A.B Bardhan threatened to continue the stir against price rise in the month of July.<br/><br/>

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