SMEs in Ambattur suffer loss of Rs 500 crore

The floods have affected the operation of 2,400 units in the entire estate, which provides direct employment to over 75,000 people, since November second week.

“Worst affected by the flood were the 1,200 units located in the north phase of the estate that faced the brunt of overflowing surplus canal of Ambattur lake. In the south phase, units on the third main road were also severely affected,” P.S. Ramesh, former president, Ambattur Industrial Estate Manufacturers Association (AIEMA) told DC.

After floodwaters receded, most of the units have begun the process of clearing or repairing the machinery. “Some of the units have also started operation after almost a month,” he said, adding that the estate was estimated to have suffered a loss of over Rs 300 crore due to stoppage of production and another Rs 200 crore for the damages to the machinery.

“The continuous disruption of production would have a long term impact on the units. The manufacturers will go for multiple vendors in place of sourcing from a single vendor in the estate. This will impact production,” he said.

To overcome yearly disruption of production during the monsoon many units are looking to shift to Andhra Pradesh as they would get concession too, he said.

“There is a totally lack of support from the government for the units in the estate. No action has been taken to prevent flooding in the estate,” he said, urging the government to take a cue from the central government which has given time extension to pay excise duty till December 20 and asked it to provide three month time to pay service tax and electricity charges.

T. Nalangilli, proprietor of Asian Industries said his company near Pattaravakkam railway station alone suffered a loss of Rs 50 lakh due to damage to equipment and sugarcane harvester.

“The harvester developed by us with the imported engine is lying in floodwater. There will be no takers for the machine that remained in floodwater,” he said.

Many industrialists blame the public works department for draining water from residential areas into the estate by constructing a storm water drain without connecting to the Korattur lake. “All the rain water from the residential areas along with Ambattur lake water is flooding the estate,” they said.