Diamond city sinks into Rs 14,300-cr loss

AHMEDABAD: Surat has suffered losses to the tune of Rs 14,300 crore due to the devastating floods that ravaged the ‘diamond city’ for a week, according to the initial estimates of the Gujarat government. The total loss to the state has been pegged at Rs 21,875 crore. In order to put the state back on growth track, chief minister Narendra Modi has urged the Centre for a special economic package.

The agriculture sector suffered a massive Rs 4,000 crore losses, while urban and other infrastructure sector incurred losses of about Rs 1,000 crore. Roads and bridges would require Rs 625 crore to be rebuilt, while housing worth Rs 700 crore has been destroyed in the deluge. Losses to irrigation, dams and canal network is close to Rs 900 crore while energy losses have been estimated to be Rs 350 crore, according to official sources.

Modi had apprised Prime Minister Manmohan Singh of the devastation caused to the trade and the industry during the latter’s visit to the flood-affected areas of south Gujarat recently.

The chief minister has urged the prime minister to make provisions for fresh loans to the flood-hit, a two-year moratorium for industries that have already availed term loan and working capital, excise duty exemption for at least three months to affected units, six months relief to industries for paying central taxes, exemption from payment of service tax, assistance to the tune of Rs 1 lakh to small businesses like powerlooms and jari units.