FAPCCI alarmed at losses due to bandhs
Hyderabad, August 11 (INN): Lamenting the enormous loss of production and fall in exports tax revenue to the state on accounts of frequent bandhs and shutdowns, the FAPCCI on Thursday appealed earnestly to the political parties not to involve the industry and trade and other commercial activities in the bandh calls.
The FAPCCI also appealed to all the concerned that they advise their volunteers and other concerned not to disturb the normal functioning of industry and trade nor forcibly close the factories, nor cause damage to the property and personnel.
FAPCCI president VS Raju told media persons that the frequent bandhs pained the Industry and are a matter of concern, with the entire industry, trade and services being grievously hurt.
Mr Raju pointed out that the wage earners are losing their wages while students are losing their education and are put to lot of trouble. 'The industry is incurring wrath of its customers,' he said.
'In these days of tough competition and just-in-time supply chain management, the delays and uncertainty in getting their orders executed by the industry in the State, are major concern; the industry is finding it difficult to convince its customers to put up with the delays and uncertainty. It is becoming a herculean task for the industrialists to assuage the angry and agitated customers and get repeat orders from them,' he said.
As far as the city of Hyderabad is concerned, the momentum of development in Hyderabad was built over the decades. And, that momentum has been keeping Hyderabad going forward. Had it not been for the ongoing unrest, Hyderabad and also the State would have recorded much higher industrial and economic growth, city has reasonable good infrastructure in terms of roads, airport, IT connectivity availability of skilled manpower among others. But the city is gradually losing out and its image as a preferred investment destination is getting tarnished.
The growth rate of IT sector is also affected quite adversely over the last few years as investors are looking out to destinations such as Chennai, Pune, NCR, Bangalore etc where there is more vibrancy. As a result getting a new business into Hyderabad is becoming a very difficult task given the uncertainty and instability prevailing in the State.
In such a situation of uncertainty and instability several investment proposals awaiting financial closers or collaborations etc., may be have second thought of investing in the State.
On top if the State is losing its most valuable Revenues. They are so very essential for the State to carry on with its development and welfare programs. This loss will entail in slowing down the growth momentum of the State's economy, which is very essential to raise the prosperity of its people and to eradicate poverty.
FAPCCI also appealed to the government to take such appropriate measures as are required, so that the Industry, Trade and other commercial activities are not unduly affected in their orderly functioning and cause loss to the economy and exchequer.
Loss of production in different Industrial Estates in and around Hyderabad Is around 25 to 30 percent, while the drop in power consumption in APCPDCL is around 900 MW. Out of which the drop in power consumption is around 350 MW. The normal consumption of power for the industry is around 1200 MW. The production loss from this figure is also around 25 to 30 percent, the FAPCCI chief said.
The estimated loss of production is around Rs 300 to Rs 350 crore; and loss due to dislocation of supply chain is around Rs 150 to Rs 180 crore. Total loss is around `400 to 500 crore only on account of loss of production from the industry in around Hyderabad.
Hyderabad, August 11 (INN): Lamenting the enormous loss of production and fall in exports tax revenue to the state on accounts of frequent bandhs and shutdowns, the FAPCCI on Thursday appealed earnestly to the political parties not to involve the industry and trade and other commercial activities in the bandh calls.
The FAPCCI also appealed to all the concerned that they advise their volunteers and other concerned not to disturb the normal functioning of industry and trade nor forcibly close the factories, nor cause damage to the property and personnel.
FAPCCI president VS Raju told media persons that the frequent bandhs pained the Industry and are a matter of concern, with the entire industry, trade and services being grievously hurt.
Mr Raju pointed out that the wage earners are losing their wages while students are losing their education and are put to lot of trouble. 'The industry is incurring wrath of its customers,' he said.
'In these days of tough competition and just-in-time supply chain management, the delays and uncertainty in getting their orders executed by the industry in the State, are major concern; the industry is finding it difficult to convince its customers to put up with the delays and uncertainty. It is becoming a herculean task for the industrialists to assuage the angry and agitated customers and get repeat orders from them,' he said.
As far as the city of Hyderabad is concerned, the momentum of development in Hyderabad was built over the decades. And, that momentum has been keeping Hyderabad going forward. Had it not been for the ongoing unrest, Hyderabad and also the State would have recorded much higher industrial and economic growth, city has reasonable good infrastructure in terms of roads, airport, IT connectivity availability of skilled manpower among others. But the city is gradually losing out and its image as a preferred investment destination is getting tarnished.
The growth rate of IT sector is also affected quite adversely over the last few years as investors are looking out to destinations such as Chennai, Pune, NCR, Bangalore etc where there is more vibrancy. As a result getting a new business into Hyderabad is becoming a very difficult task given the uncertainty and instability prevailing in the State.
In such a situation of uncertainty and instability several investment proposals awaiting financial closers or collaborations etc., may be have second thought of investing in the State.
On top if the State is losing its most valuable Revenues. They are so very essential for the State to carry on with its development and welfare programs. This loss will entail in slowing down the growth momentum of the State's economy, which is very essential to raise the prosperity of its people and to eradicate poverty.
FAPCCI also appealed to the government to take such appropriate measures as are required, so that the Industry, Trade and other commercial activities are not unduly affected in their orderly functioning and cause loss to the economy and exchequer.
Loss of production in different Industrial Estates in and around Hyderabad Is around 25 to 30 percent, while the drop in power consumption in APCPDCL is around 900 MW. Out of which the drop in power consumption is around 350 MW. The normal consumption of power for the industry is around 1200 MW. The production loss from this figure is also around 25 to 30 percent, the FAPCCI chief said.
The estimated loss of production is around Rs 300 to Rs 350 crore; and loss due to dislocation of supply chain is around Rs 150 to Rs 180 crore. Total loss is around `400 to 500 crore only on account of loss of production from the industry in around Hyderabad.
News Posted: 11 August, 2011
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