Industries in Tamil Nadu shut down early owing to uncertainty

CHENNAI: Around 5:30 pm, the crowd that had gathered in front of Chennai’s Apollo Hospitals suddenly went berserk.

While there was no official confirmation from the hospital, word had spread that Chief Minister J Jayalalithaa had passed away. Supporters resorted to toppling barricades and pelting stones at ambulances to vent their grief. Thirty minutes later, the official statement from the hospital declared the CM was still on life support.

Jayalalithaa was hospitalised 75 days ago for dehydration and fever. She was later treated for an apparent lung infection and respiratory disorder and on Sunday she suffered a cardiac arrest. On Monday, the hospital maintained that the CM’s condition remained critical.

Uncertainty over her exact health status forced industries from software to automotive to leather to plan their employees’ safe commute back home and prepare contingency plans. Carmakers like Hyundai, Renault-Nissan, and Ford had to deal with conflicting news over the exact health status of the chief minister battling for life.

Contingency plans on how to plan production amid conflicting news on the CM’s health has created a problem for corporates.

Spokespersons for Ford and Renault-Nissan told ET that a decision on cutting production will be considered only after an official confirmation.

A source in Cognizant Technology Solutions confirmed that the Business Continuity Plan has been “activated.” For software providers, millions of dollars are at stake in ensuring their Western clients are served round the clock, making mobilising resources from other states a judicious choice.

Tata Consultancy Services, one of the largest employers in Chennai, allowed employees to leave for home even before a formal announcement on the CM’s health status was put out. Nearly 25,000 technologists work at its offices at Siruseri on the IT corridor of old Mahabalipuram. A TCS spokesperson said: “Employees had been allowed to leave earlier than usual.

The decision to whether or not to invoke Business Continuity Plans is being debated now. We are waiting for an official word from the gover nment.” A spokesperson for TCS said no decision on BCP has been taken. Even on Sunday evening, when news of the cardiac arrest was confirmed, TCS had deployed internal security for employees leaving late last night.

Work at Padi and Oragadam, where carmakers and ancillary units are located, was disrupted. “As early as 4:30 pm, industries in the city’s periphery had started to shut operations and send employees home,” said Vinod Surana, Vice-Chairman of TN Assocham.

Petrol bunks and grocery stores saw unusually high footfalls by evening. Due to wild speculation, despite Apollo Hospitals’ statement, the state largely shut down by evening.